Tata Steel shares jump 3% after Q2 profit rises 16% YoY. Should you buy, sell or hold?

The shares of Tata Steel jumped more than 3% during the Muhurat Trading session on Sunday, emerging as one of the top gainers on benchmark indices Sensex and Nifty after the metal major reported a 16% year-on-year (YoY) increase in consolidated net profit to nearly Rs 3,700 crore in the September quarter of FY27.

Tata Steel shares rose to Rs 192.19 apiece on Sunday during the special session. The company yesterday reported 11.5% YoY rise in consolidated revenue from operations to Rs 65,436.24 crore during the second quarter of the ongoing financial year 2027. Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 10,665 crore, with a margin of around 16%. EBITDA improved 14% quarter-on-quarter (QoQ) and 17% YoY.

Additionally, Tata Steel announced that Noel Naval Tata will retire as Non-Executive, Non-Independent Director and Vice Chairman of the Board, effective close of business hours on November 11, 2026.


Also read | Tata Steel Q2 Results: Profit rises 16% YoY to Rs 3,700 crore, revenue up 11%; Noel Tata to retire as director

Should you buy, sell or hold Tata Steel shares?

Nuvama Institutional Equities maintained its ‘Buy’ rating on the shares of Tata Steel with a target price of Rs 219 apiece, implying around 18% upside potential from the stock’s previous closing price of Rs 186 apiece. The brokerage said the company’s Q2 EBITA was in line with the estimate, driven by higher volume offsetting lower steel prices and higher CoP.

The company’s consolidated EBITDA for the second half of FY27 is likely to rise 40% when compared to the first quarter, backed by higher prices and volume partly offset by increase in CoP, Nuvama noted, adding that the UK business is likely to break-even in Q4 FY27 while Netherlands operation to record EBITDA of $90/ton in Q4 FY27.

Elara Securities reiterated its ‘Buy’ call on the stock with a target price of Rs 235 apiece, implying 26% upside potential. The brokerage said the company’s EBITDA was largely in line with estimate, and the strong performance was led by robust domestic realization and healthy volume growth. Among overseas operations, EBITDA for Tata Steel Netherlands surged ~20x, following the restart of the Direct Sheet Plant (DSP) in August, it said, adding that it expects a stronger operational and financial performance in H2 versus H1, led by higher domestic delivery volumes, favorable seasonal demand, and firming price realization across key geographies.

Emkay Research also has a ‘Buy’ call on the shares of Tata Steel with a target price of Rs 210 apiece, implying around 13% upside potential. It viewed the results as broadly positive, with the company delivering a healthy Rs575/ton qoq improvement in EBITDA spreads, supported by improved Netherlands profitability, while peers lagged. However, widening European losses reinforce concerns over sustainable breakeven, given repeated operational setbacks.

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Tata Steel share price

Tata Steel shares have jumped more than 13% in the past one week and 6% in a month, with the stock bucking the overall market downtrend this year which has pushed Nifty down 4% in 2026 so far, to rise over 4% at the same time.

The stock has gained over 7% in one year. In the longer term, the shares of the company delivered positive returns of 59% in three years and 43% in five years.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.