Noida, May 18 (APAC Media): Shares of Tata Steel fell as much as 3.9% to an intraday low of ₹209 on the NSE on Monday, despite the company reporting a sharp rise in its fourth-quarter earnings.
The stock came under pressure as a downgrade by JPMorgan triggered profit booking.
The company reported a 147% year-on-year (YoY) jump in consolidated net profit to ₹2,965 crore in Q4FY26, compared with ₹1,201 crore in the corresponding quarter last year. Revenue from operations rose 13% YoY to ₹63,270 crore, up from ₹56,218 crore in the year-ago period.
Despite the strong earnings performance, the stock declined amid weak sentiment following the broking downgrade.
“Tata Steel to neutral from overweight with a price target of ₹220, following a 38% rally in the stock over the past one year, citing regulatory cost headwinds in the Netherlands as the immediate trigger for the downgrade. The broking flagged risks of potential early closure of coke and gas plants, which could increase costs related to raw materials, freight, and restructuring, partly offset by lower CO₂ expenses,” JPMorgan said in a report.
The stock declined amid selling pressure even after Tata Steel posted a 147% year-on-year jump in consolidated net profit at ₹2,965 crore for the fourth quarter ended March 2026, compared with ₹1,201 crore in the same period last year.
“CLSA maintained its hold rating on Tata Steel with a price target of ₹225, saying Q4 performance was in line with expectations, with standalone profitability at ₹15,236 crore (up about ₹2,150 per tonne QoQ) and improved blended profitability in Europe driven by lower losses in the UK. The broking also noted a 2 million tonne volume growth guidance for FY27, supported by near-term price increases across regions, though partly offset by rising costs,” the broking said in a report.
Revenue from operations rose 13% year-on-year to ₹63,270 crore, supported by improved realisations and steady performance in domestic operations.
“Jefferies maintained its Buy rating on Tata Steel and raised its price target to ₹275 after increasing FY27–FY28 earnings per share estimates by 6–14%, which are about 20% above Street expectations. The broking said March-quarter EBITDA rose 20% quarter-on-quarter, coming in 6% above its estimates. It expects the Indian business to deliver around 9% volume growth along with margin expansion in FY27,” Jefferies said in a report.
Following the results, the stock came under pressure as investors booked profits, with broader weakness in metal counters adding to the decline.
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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