Tata Steel falls 3.4% as Europe turns EBITDA negative

Tata Steel Limited

EEL fell 3.42% to ₹178 on October 1, 2026, its second straight decline. Its European business turned EBITDA negative in Q1 FY27 after a plant shutdown in the Netherlands, and Q2 results are due. What happened: The Direct Sheet Plant in the Netherlands was shut temporarily after chromium emissions exceeded permitted limits. Group Q1 FY27 profit was ₹2,318 crore, up 11.6% from a year ago but down about 21% from the previous quarter. Revenue fell to ₹61,120 crore from ₹63,970 crore. The steel sector fell 2.3% on October 1. Why it matters: A loss in Europe drags group earnings. Brokerage Elara says Q2 is a seasonally weak quarter, with hot-rolled coil prices falling 5.7% on average over five years. My view: Elara argues that Europe weakness is already in the price. I would not assume that before seeing Q2. The key unknown is when the plant restarts, and I could not find a date. If it is back soon, Europe losses shrink. The stock's usual discount to JSW Steel, about 28% on EV/EBITDA, is historical, so cheapness alone is not a signal. I would look at Indian EBITDA per tonne first. The risk to a cautious view is a quick rebound in coil prices after the weak season. What I am watching: Q2 FY27 results, for Indian EBITDA per tonne and any update on the Netherlands plant. The trading window has been closed since September 24. Price: ₹178, the October 1 close, as the line to hold, and ₹184.30, the September 30 close, as resistance. Cautious. Wait for confirmation from Q2. I do not hold a position in Tata Steel Limited. Not investment advice.