TATASTEEL
Large CapTata Steel Limited
Metals
Tata Steel is a top global steel company with 35 MTPA crude steel capacity, geographically diversified operations, and FY26 consolidated turnover of ~$26 billion. It aims for Net Zero by 2045 and is on a multi-year digital transformation journey.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +13% YoY · PAT +147% YoY · margin expansion · +11% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹63,270 Cr | +12.5% | +11.0% |
| EBITDA | ₹9,829 Cr | +49.9% | +19.9% |
| Operating margin | 16.0% | +400 bps | +200 bps |
| PAT | ₹2,965 Cr | +146.9% | +8.6% |
| PAT margin | 4.7% | +255 bps | -10 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Tata Steel reported FY26 consolidated EBITDA of Rs 34,848 crores (up 35% YoY) and PAT of Rs 10,886 crores. Q4FY26 consolidated EBITDA was Rs 9,953 crores (up 47% YoY) with a 16% margin, driven by strong India performance and improved volumes.
The thesis is under stress due to significant regulatory challenges and going concern uncertainty at Tata Steel Netherlands, which could impact European operations. While India operations show robust growth, record volumes, and deleveraging, global geoeconomic uncertainty and rising input costs remain headwinds.
India Volume Growth
Tata Steel India reported ‘best ever’ deliveries of ~22.5 million tons.
Downstream Portfolio
expanding downstream portfolio across Tubes, Tinplate, Colors & Wires, in line with our strategy of strengthening our leadership position across chosen high value segments.
Digital Sales Platforms
e-commerce platforms, Aashiyana and DigECA, recorded annual Gross Merchandise Value of Rs 8,495 crores, up 137% YoY.
Automotive Sector Focus
Kalinganagar’s continuous annealing and galvanising lines secured customer approvals at a record pace, consolidating our position as a preferred supplier to the automotive industry.
Ludhiana EAF
0.75 MTPA scrap based Electric Arc Furnace at Ludhiana was commissioned in March 2026.
NINL Expansion
proposed 4.8 MTPA expansion at NINL.
Kalinganagar CRM Complex
commissioned 2.2 MTPA CRM complex at Kalinganagar.
UK Low-Carbon Steelmaking
Constructing UK’s largest low-carbon steelmaking facility of around 3 MTPA at Port Talbot.
Firm India Steel Demand
India apparent steel demand continued to grow, and exports remained higher than imports for second consecutive quarter.
EU & UK Trade Protectionism
EU implemented CBAM and EC has approved tighter safeguards effective 01st July 2026. UK plans to tighten quotas for products & increase duty from 25% → 50%.
Cost Transformation Program
Cost transformation program has achieved ~Rs 10,868 crores of savings across geographies and targeting Rs 7,140 crs. in FY2027.
Geoeconomic Uncertainty
FY2026 was characterised by elevated geoeconomic uncertainty, with supply-chain and tariff-led trade disruptions impacting global steel markets.
West Asia Conflict Impact
developments in West Asia began to exert pressure on supply chains and input costs, and these pressures are continuing into FY2027.
Subdued UK Demand
UK deliveries... impacted by subdued demand dynamics.
Netherlands Regulatory Action
Environment Agency and the local Province have also on 23rd April issued a letter to Tata Steel Netherlands indicating their intention to revoke operating permits and trigger an early closure of the coke and gas plants.
Netherlands Going Concern
financial statements of Tata Steel Netherlands have been prepared taking into account a material uncertainty to going concern.
Evolving Slag Disposal Standards
local requirements in Netherlands now not only exceed EU standards but are threatening to become infeasible.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are crucial. YoY provides context for annual growth and overall performance trends, especially for a cyclical industry. QoQ is vital for assessing sequential momentum, utilization rates, and the immediate impact of commodity price changes and project execution in the metals sector.
Consolidated Deliveries
FY26: 31.97 mn tons (up from 30.96 mn tons FY25). 4QFY26: 8.72 mn tons (up from 8.21 mn tons 3QFY26).
India Deliveries
FY26: ~22.5 mn tons (best ever, up 8% YoY). 4QFY26: 6.19 mn tons (best ever quarterly, up 14% YoY production).
Consolidated EBITDA per ton
FY26: Rs 10,900 (up from Rs 8,335 FY25). 4QFY26: Rs 11,410 (up from Rs 10,069 3QFY26).
India EBITDA per ton
FY26: Rs 15,213 (up from Rs 13,983 FY25). 4QFY26: Rs 15,907 (up from Rs 13,735 3QFY26).
Operational Discipline
our sustained focus on operational discipline and cost transformation continued to deliver performance across our global businesses.
Netherlands Engagement
We remain committed to working constructively with the regulators to find a feasible and sustainable path forward.
Mitigating Geopolitical Risks
We are pursuing calibrated actions to mitigate risks in this regard (West Asia conflict).
Capital Allocation
remain focused on prioritising, optimising and sequencing our capital allocation to balance investment needs with returns, while maintaining financial discipline.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Netherlands Regulatory Resolution | Intention to revoke operating permits for coke and gas plants; material uncertainty to going concern. | Outcome of engagement with regulators, feasible closure timeline, or legal recourse. |
| Net Debt to EBITDA Ratio | 2.3x | Continued deleveraging and adherence to financial discipline amidst ongoing capex. |
| India Volume & Margin Growth | Best-ever annual and quarterly deliveries; India EBITDA margin ~25% in 4QFY26. | Sustained volume growth, margin expansion, and successful ramp-up of new capacities in India. |
| Cost Transformation Savings | Achieved ~Rs 10,868 crores in FY26. | Progress towards the FY27 target of Rs 7,140 crores in cost savings. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +12.3% / mo
Technical chart
TATASTEELweekly · 6M+18.2%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 52.
- RSI(14) at 52 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 9% off 52W high · 27% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 8.2%.
- Piotroski is strong at 8/9.
- Cash flow contributes 10/10 to the score.
Main drags
- Fair-value margin of safety is negative at -0.2%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 5/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 90th percentile of the scored universe and 96th percentile within Metals. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Metals: 96th pctile, median 68 · Large: 74th pctile, median 74
158 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 8.2%.
- ▸10 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 22.40
- P/B
- 2.48
- EV/EBITDA
- 7.46
- Market Cap
- 253029.00Cr
Profitability
- ROE
- 11.70%
- ROCE
- 12.50%
- ROA
- 3.67%
- Dividend Y
- 1.97%
Growth (CAGR)
- Revenue 5Y
- 8.00%
- EPS 5Y
- 8.00%
- Revenue 3Y
- -2.00%
- EPS 3Y
- 10.00%
Balance Sheet
- Debt/Equity
- 0.90
- Interest Coverage
- 4.79×
- Altman Z
- 2.55
- Book Value
- 81.80
Cash Flow
- FCF Yield
- 8.17%
- FCF Positive Y
- 10/5
- OCF
- 35064.00 Cr
- EPS TTM
- 8.65
Shareholding
- Promoter Hold
- 33.19%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 72%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Metals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.