Tata Steel Tops Nifty Gainers After 116% Surge in Q1 Profit

Tata Steel shares rose 2% to ₹156 on August 4, becoming the top gainer on the Nifty 50, following a 116.5% YoY jump in Q1 FY26 net profit to ₹2,078 crore, boosted by higher realisations and cost-saving measures, along with support from the Centre’s safeguard duty on select steel imports. Though revenue dipped 2.9% YoY to ₹53,178 crore, both profit and revenue beat estimates. Sequentially, profit grew nearly 60%, while revenue slipped 5.4%. Jefferies maintained a "Buy" rating with a target of ₹200, citing strong EBITDA performance and narrowing UK losses. However, it warned of margin pressure in Q2 due to lower spot steel prices. India operations were impacted by maintenance shutdowns, while Netherlands EBITDA rose sharply and UK losses halved. Tata Steel expects normalised operations in the coming quarters. Despite the day’s gains, the stock is still down 3% YTD, underperforming the Nifty’s 3% rise.