Tata Steel Ltd.
NSE: TATASTEELTata Steel Ltd.: A 30-second snapshot
Tata Steel (₹198.96) trades above its 200-DMA (₹185.21) and is up 33% over the past year, with FY26 PAT surging 243% YoY to ₹10,886 crore on the back of strong India operations. Despite the earnings improvement, the stock carries debt-to-equity of 89.0, a profit margin of 4.65%, and ROE that has not exceeded 15% in any recorded year — placing it near the lower tier of Metals peers on fundamental quality (consistency score 23). Analyst coverage spans 36 analysts with a mean rating of 2.54 on a 1–5 scale (lower = more constructive).
P/E
23.0
Forward P/E
10.6
ROE
+11.2%
Debt / Equity
89.02
Profit Margin
+4.7%
Div. Yield
+2.0%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
50/100
News
5 headlines · 2 positive · 0 negative
Tata Steel Files FY26 Integrated Report; PAT Surges 243% to ₹10,886 Crore - scanx.trade
scanx.trade
Tata Steel (NSE: TATASTEEL) Announces ₹4 Dividend on ₹1 Face Value Shares for FY2025-26 as Stock Dips 0.65% - Meyka
Meyka
Tata Steel Q4 Results 2026 - Find Tata Steel Q4 Earnings Result | TATASTEEL Q4 results - Mint
Mint
Tata Steel Q3 Results 2026 - Find Tata Steel Q3 Earnings Result | TATASTEEL Q3 results - Mint
Mint
Tata Steel Q2 Results 2026 - Find Tata Steel Q2 Earnings Result | TATASTEEL Q2 results - Mint
Mint
Recent context
- ·FY26 integrated report filed June 2026 showed PAT up 243% YoY to ₹10,886 crore, with management commentary highlighting strong India operations as the primary driver.
- ·A ₹4 per share dividend on ₹1 face-value shares was announced for FY26, reflecting management confidence in near-term cash generation alongside the earnings recovery.
- ·Q4 FY26 results coverage (Mint, June 2026) is the most recent earnings event in the news set; the 5-item corpus is neutral in aggregate with no negative headlines captured, though the thin volume limits the signal.
Strengths
- +5-year revenue CAGR of 12.5% and 5-year earnings CAGR of 125.2% reflect a substantial recovery in profitability from the trough, with FY26 PAT reported up 243% YoY to ₹10,886 crore.
- +FCF was positive in 4 of the available fiscal years, indicating the business generates cash in most operating environments despite the capital intensity of steelmaking.
- +At ₹198.96, the stock trades 7.4% above its 200-DMA (₹185.21) and is up 6.6% over the past 3 months, with three identified technical support levels clustered at ₹198.94, ₹192.09, and ₹178.86.
- +Dividend yield of 2.01% with a ₹4 per share dividend announced for FY26 provides an income component alongside the recovery in earnings.
Weaknesses
- −Debt-to-equity of 89.0 is elevated relative to the Metals sector; the flat debt trend over the recorded period means leverage has not meaningfully declined despite the earnings recovery — a high-severity flag given the cyclical nature of steel pricing.
- −ROE of 11.16% has not exceeded 15% in any year within the recorded period, and the fundamental consistency score of 23 ranks 2nd-lowest among the 6 Metals peers tracked (vs JSW Steel at 45 and Hindustan Zinc at 72).
- −Profit margin of 4.65% is thin for a company carrying substantial debt; in a steel-price downturn, even a modest revenue decline can simultaneously compress earnings and tighten cash flow.
- −Trailing PE of 23.0 against a forward PE of 10.6 prices in a near-doubling of earnings power; if the European segment headwinds persist or India steel spreads narrow, the implied step-up may not materialise on the expected timeline.
Open questions
- ?Does the 243% PAT surge reflect a structural improvement in steelmaking economics or a recovery from an unusually depressed base, and how much is attributable to India versus the European segment?
- ?With debt-to-equity at 89.0 and a flat debt trend, what is the stated deleveraging timeline, and under what steel-price scenario does interest coverage become a constraint?
- ?The forward PE of 10.6 implies significant earnings growth from the current 4.65% margin — which specific operational or pricing levers are expected to drive that margin expansion?
- ?How does TATASTEEL India capacity utilisation and realisations per tonne compare with JSW Steel (ROE 27.26%) to explain the gap in return on equity across the peer set?
Peer comparison: Metals
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| TATASTEEL | Tata Steel Ltd.You're viewing | 23.0 | +11.2% | 47 |
| Industry avg | across 5 peers | 24.8 | +27.0% | 40 |
| HINDZINC | Hindustan Zinc Ltd. | 17.2 | +76.9% | 72 |
| JSWSTEEL | JSW Steel Ltd. | 14.2 | +27.3% | 45 |
| JINDALSTEL | Jindal Steel Ltd. | 34.5 | +6.8% | 34 |
| HINDALCO | Hindalco Industries Ltd. | 16.8 | +10.3% | 31 |
| ADANIENT | Adani Enterprises Ltd. | 41.2 | +13.7% | 19 |
Technical state
Current price
₹198.96
SMA 50
₹205.58
SMA 200
₹185.21
RSI (14)
44.8 (neutral)
From 52w high
-9.5%
1Y return
+33.1%
3M return
+6.6%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 89.0 in a cyclical commodity sector with profit margin of 4.65% and ROE of 11.16%. Zero years of ROE above 15% in the recorded period; fundamental consistency score of 23. Thin margins combined with elevated leverage amplify earnings and cash-flow pressure in any steel-price downturn.
- mediumTrailing PE of 23.0 versus forward PE of 10.6, implying the market is pricing a near-doubling of earnings from the current 4.65% margin base. FCF was positive in 4 of the available years, but debt trend is flat rather than declining, leaving limited headroom if the earnings recovery falls short.
- mediumQuality score ranks 2nd-lowest among 6 Metals peers (score 47 vs sector leader Hindustan Zinc at 72). ROE of 11.16% ranks 4th of 6, below JSW Steel (27.26%) and Hindustan Zinc (76.94%). PE of 23.0 is the second-highest in the peer set, above sector median.
- lowNews coverage is sparse at 5 items total; 0 negative, 3 neutral, 2 positive. Thin news volume limits confidence in the overallLabel of neutral.
Cross-section contradictions
- Stock is up 33% over 12 months and trades above its 200-DMA (current price ₹198.96 vs SMA200 ₹185.21), only 9.5% off the 52-week high — yet ROE has never exceeded 15% in the recorded period, fundamental consistency score is 23, and profit margin stands at 4.65%. Price momentum and fundamental quality indicators diverge sharply.
- FY26 PAT surged 243% to ₹10,886 crore per the integrated report, yet the trailing PE of 23.0 on a 4.65% profit margin implies absolute earnings remain modest relative to revenue, and the forward PE of 10.6 prices in a further significant earnings step-up that has not yet occurred.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 22 Jun 2026 · rotates through NIFTY 500 every ~5 days