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Tata Steel Shares Gain 16% in 2025 After Port Talbot Project Update

Is Tata Steel’s 16% jump in share price just the beginning? Find out if now is the right time to invest.

Tata Steel Shares Gain 16% in 2025 After Port Talbot Project Update

Tata Steel has seen an impressive 16% jump in its share price since the start of 2025. With the latest update from the company’s £1.25 billion green steel project in Port Talbot, UK, the stock continues to climb. If you’ve been following the company, you might be wondering if now is the time to buy.

Tata Steel’s steady climb in 2025

Since the beginning of 2025, Tata Steel has seen its stock price rise steadily. On a Wednesday morning, the company’s share opened at Rs 160.10 per share on the Bombay Stock Exchange (BSE), eventually trading 0.75% higher at Rs 161.15 at 9:30 AM, with a market capitalization of Rs 2,01,170.68 crore.

On Tuesday, Tata Steel’s stock closed at Rs 159.95 per share, after hitting an intraday high of Rs 160.35 per share. While the movement might seem small in percentage terms, the consistent upward trend signals investor confidence in the company’s future, especially following its green steel initiatives in Port Talbot.

Green Steel and Port Talbot project

A major reason for the recent uptick in Tata Steel’s share price is the company’s commitment to its green steel production ambitions. The company has been investing heavily in its Port Talbot plant to transition towards more sustainable production methods. This initiative is part of Tata Steel’s larger plan to shift towards low-carbon steelmaking.

In a recent development, Tata Steel awarded the first phase of the £1.25 billion project to the Welsh engineering firm Systems Group. This contract covers the refurbishment of two continuous casters, which are integral to the steelmaking process. These casters help in transforming liquid steel from the Electric Arc Furnace (EAF) into solid steel slabs—a vital part of steel production.

The Systems Group’s work will involve structural upgrades and replacing piping on these critical machines. The refurbishment is expected to ensure that the continuous casters are in top condition to handle steel from the new EAF, which will eventually contribute to Tata Steel’s green steel goals.

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The Green Steel Ambition

The green steel project at Port Talbot is an essential part of Tata Steel UK’s £1.25 billion transition towards more sustainable steelmaking. The company’s long-term plan includes the installation of an electric arc furnace (EAF) by the end of 2027, a move that will significantly reduce the plant’s carbon emissions.

Once completed, the EAF is projected to cut down carbon emissions by 90%, which is equivalent to eliminating 5 million tonnes of CO2 per year. This move aligns with Tata Steel’s strategy to address climate change and reduce its environmental footprint, a goal that investors and environmentalists alike are closely watching.

As Ryan O’Neill, Managing Director of Systems Group, pointed out, this project is a key step toward securing the future of steelmaking in South Wales, a region that has been the heart of Tata Steel’s operations for decades.

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The Port Talbot Plant’s Future

Tata Steel’s Port Talbot plant is undergoing significant upgrades not only to improve efficiency but also to reduce its environmental impact. The refurbished casters will play a key role in this transition. Ian Ellis, the Engineering Project Manager at Tata Steel, emphasized that the refurbishments are essential for supporting the company’s new electric arc furnace, ensuring that it meets the demands of customers for higher-quality steel.

The success of the Port Talbot green steel initiative is critical to Tata Steel’s long-term strategy. As the company works to modernize its plant and reduce carbon emissions, it is also positioning itself to capture a larger share of the growing demand for low-carbon steel. This could have significant positive implications for Tata Steel’s stock price and overall market position in the coming years.

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Tata Steel share price: Is now the right time to buy?

So, is Tata Steel a good buy right now? As with any investment, it’s important to assess both the upside and potential risks. The company’s green steel projects at Port Talbot are promising, and the company is making significant strides toward achieving its sustainability goals. However, market conditions, global steel demand, and the potential for unforeseen setbacks at Port Talbot may all play a role in the stock’s future performance.

Investors should keep an eye on upcoming updates from Tata Steel, particularly around the progress of the Port Talbot project and the commissioning of the electric arc furnace. If the company is successful in its green steel transformation, the long-term potential for Tata Steel’s stock looks promising. However, short-term fluctuations in stock prices are always a possibility, so careful consideration of your investment strategy is essential.

Table: Tata Steel Stock Performance 

DateShare Price (Rs)Market Capitalization (Cr)
1st July 2025159.952,01,170.68
2nd July 2025161.152,01,170.68

Conclusion

Tata Steel’s stock has been performing well in 2025, with a notable 16% jump in share price. This rise is driven largely by the company’s efforts in green steel production at its Port Talbot plant, an initiative that promises to not only reduce the plant’s carbon footprint by 90% but also position Tata Steel as a leader in low-carbon steelmaking. The refurbishments and upgrades at Port Talbot are vital to the company’s future, and the successful implementation of these projects could further boost the stock.

The company’s long-term prospects are tied to its success in transitioning to greener, more sustainable production methods. The green steel ambition could unlock substantial growth for Tata Steel, but like all investments, it carries inherent risks.

For investors considering Tata Steel, keeping an eye on the progress of the Port Talbot project and market dynamics will be key. While short-term volatility is possible, the company’s sustainability efforts present a promising future. Whether or not this is the right time to buy depends on your investment strategy, but the green steel movement certainly makes Tata Steel an interesting stock to watch.

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Neha Verma

Neha Verma is a finance professional with a passion for simplifying financial concepts. She specializes in personal finance and helps people understand the importance of effective money management. Neha’s approach focuses on practical strategies for budgeting, saving, and investing, with the goal of empowering readers to make informed financial decisions. Through her writing, she shares useful insights and tips that help people navigate the world of finance with confidence.

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