Tata Steel shares rise 2%. Why brokerages remain bullish; see up to 30% upside potential

Shares of Tata Steel gained more than 2% on Wednesday, extending sharp upswings and downswings seen on the counter following its Q2 results announcement this weekend. While most brokerages maintained their ‘Buy’ ratings on the stock, many revised target prices.

Tata Steel shares rose to Rs 189.35 apiece on NSE on Wednesday morning. The stock has gained around 5% in a week and 8% in a month, overall gaining more than 3% in 2026 so far and pushing its market cap closer to Rs 2.35 lakh crore.

Tata Steel on Saturday reported a 16% year-on-year (YoY) increase in consolidated net profit to nearly Rs 3,700 crore in the September quarter of FY27. Its consolidated revenue from operations meanwhile increased 11.5% YoY 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

Nomura on Tata Steel share price

Nomura maintained its ‘Buy’ rating but reduced their target price to Rs 210 apiece from Rs 240 apiece. The latest target price implies around 14% upside potential from the stock’s previous closing price of Rs 184.85 apiece.

The international brokerage said its target price cut was largely on lower FY28-29 EBITDA for the European business, reflecting lower utilization and higher costs from project delays and the West Asia crisis. It cut FY28 EBITDA estimates by 7% to Rs 40,800 crore and that for FY29 to Rs 46,100 crore.

As we come closer to financial year 2030, Nomura cut its India one year-forward EBITDA multiple to 7x (from 8x) to factor in the loss of iron ore mines by FY30. Near-term EBITDA also includes higher iron ore sales, which are less margin-accretive than steel volumes, the international brokerage said.

Jefferies on Tata Steel share price

Jefferies maintained its ‘Buy’ rating on the shares of Tata Steel with a target price of Rs 240 apiece, implying around 30% upside potential. The international brokerage expects India margins to expand as the 10% higher steel prices as compared to September quarter average more than offsets higher costs.

With the next 5 mtpa expansion coming up only by FY31, Jefferies expects Tata Steel to deliver lackluster volume growth over FY28-30.

Also read | Jefferies sees largecaps benefiting from FPI revival; Reliance, HDFC Bank, Axis Bank among potential beneficiaries

Axis Securities on Tata Steel share price

Axis Securities upgraded its rating on the shares of Tata Steel to ‘Buy’ from ‘Hold’, and increased its target price to Rs 210 apiece from Rs 200 apiece. This implies 14% upside potential.

The domestic brokerage noted that the company’s near-term profitability across all operating regions is guided to strengthen materially in the second half of FY27. It said its rating upgrade came as resilient India operations continue to outpace seasonal headwinds, supported by volume growth and downstream enrichment. With the Direct Sheet Plant turnaround in the Netherlands, an impending Q3 domestic realisation bump of Rs 3,500/t, and expanding merchant iron ore sales, near-term earnings momentum remains robust. Growth capex is comfortably backed by strong domestic operating cash flows, offering an attractive risk-reward profile.

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.