Tata Steel Share Price Up 3% Post Q2FY26 Update; Stock Up 38% in 6 Months; Should You Invest?

Tata Steel Share Price Today: Shares of Tata Steel Limited surged significantly on Thursday, October 9, hours after the company reported 10.9% surge in its steel production in the first half of the year 2025-26.

Tata Steel shares were trading 2.71% higher at Rs 176.5 per share on BSE with a market capitalisation of Rs 2,20,332.76 crore. The stock touched an intraday high mark of Rs 177.85 per share on BSE and an intraday low mark of Rs 172.55 apiece.

Tata Steel Q2 Update

Tata Steel India crude steel production stood at 5.67 million tons in the second quarter of the financial year 2025-26. The company reported 8% sequential uptick in steel production and 7% yearly sure during the quarter.

The positive growth of the steel production was led by normalisation of operations post completion of relining of G Blast furnace at Jamshedpur.

"On half year basis, production was up 3% YoY to 10.9 million tons. Tata Steel India deliveries for the quarter stood at 5.56 million tons. Domestic deliveries grew 20% QoQ and 7% YoY, aided by improved production and stable demand across market segments despite the seasonal rains," read Tata Steel's BSE filing on Thursday.

Tata Steel Share Price Recommendation

Domestic steel demand is likely to see a sharp surge supported by favourable macroeconomic conditions like GST rationalisation, growth in auto and engineering segments, etc.

"There remains an upside risk to our EBITDA/t assumptions, as the safeguard duty has effectively set a floor for domestic pricing, and improving demand would lead to higher prices in domestic parlance which is at ~6% discount to import parity prices," noted PL Capital in its report this week.

However, Tata steel may face capacity constraints post-FY28 if the pace of execution does not improve, particularly when robust domestic consumption rate continues, added PL Capital in its report.

Tata Steel Share Price Recommendation

PL Capital has given an 'accumulate' rating to the stock. The brokerage has given a Rs 181 per share target price for the stock. "The stock currently trades at 6.2x/5.6x FY27/28E EBITDA. We maintain Accumulate rating with a revised target price of 181 (earlier 177), valuing the company at 6.5x EV/Sep'27E EBITDA (rolling forward from Mar'27)," noted PL Capital in its report earlier this week.

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