Tata Steel shares trade higher after Q1 profit rises 11% YoY to ₹2,318 crore; what do analysts predict next?

Tata Group’s steel manufacturing arm, Tata Steel, shares were trading higher on Friday, July 31, as investors focused on the company’s healthy April to June quarter financial performance for the year 2026-27, while analysts chart key focus areas in the upcoming period.

NSE data showed that Tata Steel shares surged 1.4% to their intraday high of ₹189.70 apiece on Friday’s market, compared to ₹186.92 apiece at the previous equity market close, as per the exchange data.

Experts predict that Tata Steel's European business profitability and management outlook for the same will be in key focus as the company is set to host its analysts' call later during the afternoon market hours on Friday, July 31.

How did Tata Steel perform in Q1 earnings?

After the market hours on July 30, Tata Steel’s board of directors announced that the company has recorded an 11.5% growth in its consolidated net profit (attributable to owners) to ₹2,318.35 crore in the April-to-June quarter of FY27, compared to ₹2,077.68 crore in the same period a year earlier.

The consolidated revenue from core operations advanced 14.3% to ₹60,794.29 crore in the June quarter, from ₹53,178.12 crore in the corresponding quarter of the previous financial year.

While the company’s revenues witnessed a rise in Q1 earnings, the company’s raw material costs also increased 12% to ₹20,185.68 crore in the period under review, from ₹18,028.08 crore in the same quarter a year earlier.

The EBITDA margins of the company witnessed growth YoY; the net profit margin also expanded marginally to 3.92% in the first quarter, from 3.77% in the same period a year earlier.

“Global operating environment remained complex, with the impact of developments in West Asia on supply chains and input costs being more pronounced in the quarter. Our overseas operations also had to navigate operational disruptions. Despite these headwinds, Tata Steel delivered a sequential improvement in EBITDA per ton for the third consecutive quarter,” said T V Narendran, Chief Executive Officer & Managing Director of Tata Steel.

*Note: All data have been collected from Tata Steel’s consolidated financial statements.

What do analysts predict next?

Analysts from a leading US-based investment firm, JP Morgan, said that Tata Steel’s Q1 earnings largely met expectations, while key focus will now remain on the company’s profitability in the European market.

“India business profitability was strong; management’s commentary on Europe’s profitability outlook will be key,” said JP Morgan analysts, highlighting that the company’s stock is expected to trade in line with the broader equity markets.

In line with the review, analysts from Morgan Stanley said that Tata Steel recorded strong domestic realisation; however, it was largely offset by higher operational expenditure (opex).

“Consolidated EBITDA was at 11%, below consensus. Raw material costs were higher, led by higher coking coal consumption cost,” said the experts from Morgan Stanley reviewing the company earnings.

Tata Steel share performance

Tata Steel shares have delivered more than 30% returns on their investment in the last five years, over 51% gains in the last three years, and more than 18% gains in the past one-year period, according to NSE data.

So far in the calendar year 2026, the company stock has risen 2.8%, but was down 0.6% in the last one-month period. The exchange data also showed that Tata Steel shares have gained 2.3% in the last five market sessions.

Shares of Tata Steel surged to their 52-week high of ₹224.40 on May 15, 2026, while the 52-week low was at ₹152.51 on August 1, 2025. The company’s market capitalisation (m-cap) was at over ₹2.33 lakh crore as of the trading session on Friday, July 31.