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Tata Steel is an Iron & Steel company based in Mumbai, India, known for its extensive manufacturing and distribution of steel products both domestically and internationally. Its stock ticker is TATASTEEL, and the company boasts a market capitalization of Rs. 189,199.9 Crores.
The company produces a wide range of steel products, including:
Tata Steel serves diverse markets such as automotive, construction, industrial and general engineering, and consumer durables.
Incorporated in 1907, Tata Steel has displayed considerable financial performance, with a trailing 12 months revenue of Rs. 222,267.1 Crores. The company distributes dividends to its investors, achieving a dividend yield of 2.72% per year, with a recent dividend payment of Rs. 3.6 per share.
However, in the past three years, Tata Steel has diluted its shareholders by 2.2% and experienced a slight revenue decline of -1.3%.
Valuation | |
|---|---|
| Market Cap | 1.9 LCr |
| Price/Earnings (Trailing) | 75.34 |
| Price/Sales (Trailing) | 0.86 |
| EV/EBITDA | 7.46 |
| Price/Free Cashflow | 82.96 |
| MarketCap/EBT | 24.19 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 2.22 LCr |
| Rev. Growth (Yr) | -3.01% |
| Rev. Growth (Qtr) | -1.16% |
| Earnings (TTM) | 2.53 kCr |
| Earnings Growth (Yr) | -43.41% |
| Earnings Growth (Qtr) | -61.06% |
Profitability | |
|---|---|
| Operating Margin | 4.02% |
| EBT Margin | 3.54% |
| Return on Equity | 2.79% |
| Return on Assets | 0.90% |
| Free Cashflow Yield | 1.21% |
Analysis of TATA STEEL's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Mar 31, 2025
| Description | Share | Value |
|---|---|---|
| Tata Steel India | 49.7% | 34.4 kCr |
| Tata Steel Europe | 27.9% | 19.3 kCr |
| Other Trade Related Operations | 13.3% | 9.2 kCr |
| Other Indian Operations | 4.1% | 2.9 kCr |
| South East Asian Operations | 3.0% | 2.1 kCr |
| Neelachal Ispat Nigam Limited | 2.0% | 1.4 kCr |
| Total | 69.3 kCr |
Size: It is among the top 200 market size companies of india.
Dividend: Pays a strong dividend yield of 4.72%.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Reasonably good balance sheet.
Momentum: Stock is suffering a negative price momentum. Stock is down -3.2% in last 30 days.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -5.5% in past one year. In past three years, revenues have changed by -1.3%.
Summary of TATA STEEL's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: May 25
In the earnings discussion for the fourth quarter and full year FY2025, management provided an optimistic outlook for Tata Steel, emphasizing key operational and financial metrics. Notably, the company achieved its highest-ever crude steel production of approximately 21.7 million tons and deliveries of about 20.9 million tons for the fiscal year. The focus remains on enhancing cost competitiveness, especially following the commissioning of India's largest blast furnace at Kalinganagar.
Tata Steel India plans to deliver an incremental 1.5 million tons in FY2026, with about 2 million tons expected from Kalinganagar, though Jamshedpur's output will face constraints due to blast furnace relining. The company's cost transformation program is targeting significant savings, with approximately Rs. 4,000 crores expected from Indian operations alone. In Europe, anticipated cost takeouts are around €500 million for FY2026, with net EBITDA targets of €70-100 per ton.
Management highlighted a shift in operational strategy in the UK, with an ongoing transition towards a green steelmaking model, positively impacting fixed costs. They expect to capture an EBITDA neutral status as cost efficiencies improve. Key performance indicators are being closely monitored, with November-December generally being the period for price negotiations.
In terms of capital allocation, the company intends to spend Rs. 15,000 crores in FY2026, with a focus on growth projects and sustainability initiatives, particularly in decarbonization efforts. The management indicated a strong commitment to deleverage, with net debt reduced to around Rs. 82,579 crores, reflecting a proactive financial strategy amidst a fluctuating market environment.
Last updated: May 25
1. Question (Prateek Singh, DAM Capital Advisors):
I wanted to get a sense of how prices have moved currently vs. the last quarter, both in Europe and in India?
Answer (T. V. Narendran, CEO):
In India, we are guiding that prices this quarter will be about Rs.3,000 per ton higher than the last quarter. In Europe, prices are about €20-30 per ton higher than last quarter.
2. Question (Prateek Singh, DAM Capital Advisors):
What is your view on Jamshedpur given the legacy cost issues and operational disadvantages?
Answer (T. V. Narendran, CEO):
While Jamshedpur has legacy costs, we've been addressing them. The gap between Jamshedpur and other sites is narrowing due to R&D and procurement efficiencies. The retirement of older workers further aids in reducing costs.
3. Question (Ritesh Shah, Investec):
Could you help us understand the recent approval to infuse another $2.5 billion into Europe?
Answer (Koushik Chatterjee, CFO):
This is a rebalancing of debt"”not new investment. It aims to reduce currency fluctuation and post-tax costs while supporting ongoing projects, such as EAF in the UK, which is partly funded by the government.
4. Question (Ritesh Shah, Investec):
What are the underlying variables for the cost takeout for the UK operations?
Answer (Koushik Chatterjee, CFO):
We aim to reduce total fixed costs by £540 million. This includes maintenance, operations, and other charges, reflecting an exit rate rather than just annualized costs, addressing ongoing expense improvements.
5. Question (Satyadeep Jain, Ambit Capital):
What is unique about the cost takeout approach now compared to before?
Answer (T. V. Narendran, CEO):
Cost reduction is cyclical; it will continue indefinitely. The focus on technology and data analytics today provides deeper insights for cost efficiencies that we couldn't achieve before.
6. Question (Amit Dixit, ICICI Securities):
Can you tell us the volume guidance for India and consolidated for FY2026?
Answer (T. V. Narendran, CEO):
We anticipate a net increase of about 1.5 million tons of additional deliveries, mainly in India, with flat volumes expected in the UK and slight growth in the Netherlands.
7. Question (Ashish Jain, Macquarie):
Is the infusion of $2.5 billion the final support from India's balance sheet to European operations?
Answer (Koushik Chatterjee, CFO):
The Netherlands should soon be debt-free as it generates cash flows, while UK operations still require support. The goal is to ensure future fundraising is minimal as we work toward stability.
8. Question (Sumangal Nevatia, Kotak Securities):
What is the expected impact of reduced carbon allowances in FY2026?
Answer (Koushik Chatterjee, CFO):
In the UK, there will be no impact from carbon allowances, while in the Netherlands, we anticipate an increased cost of around €80 million due to a reduction in carbon allowances.
This summary captures key questions and responses regarding price movements, cost efficiencies, and strategic planning for Tata Steel.
Understand TATA STEEL ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| TATA SONS PRIVATE LIMITED | 31.76% |
| Life Insurance Corporation Of India | 7.81% |
| Sbi- Various Mutual Funds | 3.53% |
| Hdfc- Various Mutual Funds | 2.19% |
| Icici- Various Mutual Funds | 1.78% |
| Uti- Various Mutual Funds | 1.05% |
| Government Pension Fund Global | 1% |
| Trusts | 0.45% |
| TATA MOTORS LIMITED | 0.44% |
| TATA INVESTMENT CORPORATION LIMITED | 0.34% |
| TATA CHEMICALS LTD | 0.25% |
| EWART INVESTMENTS LIMITED | 0.18% |
| RUJUVALIKA INVESTMENTS LIMITED | 0.09% |
| TATA INDUSTRIES LIMITED | 0.08% |
| Unclaimed or Suspense or Escrow Account | 0.06% |
| TATA MOTORS FINANCE LIMITED (FORMERLY TATA MOTORS FINANCE SOLUTIONS LIMITED) | 0.05% |
| TATA CAPITAL FINANCIAL SERVICES LTD | 0% |
| TMF BUSINESS SERVICES LIMITED (FORMERLY TATA MOTORS FINANCE LIMITED) | 0% |
| SIR DORABJI TATA TRUST(NNTata,VenuS,VSingh,PramitJhaveri,MehliMistry,DKhambata) | 0% |
| SIR RATAN TATA TRUST(NNTata,VenuS,VSingh,JimmyNTata,JehangirHCJehangir,MehliMistry,DKhambata) | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Updated Jun 16, 2025
Tata Steel shares have declined over 2% in today's trading session, reflecting ongoing investor concerns.
The company is facing fluctuating revenues and projected a net profit drop compared to previous years.
Current trading performance indicates cautious sentiment as Tata Steel's stock is seen underperforming compared to the overall Nifty Metal index.
Tata Steel plans to build a low-carbon steel plant using electric arc furnace technology at its Port Talbot facility, aiming to produce 3.2 million tonnes of low-emission steel annually.
The project is backed by £500 million from the UK government and aims to significantly reduce carbon emissions.
Despite the stock price fluctuations, Tata Steel's Q4 FY25 results indicated a substantial increase in net profit.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Detailed comparison of TATA STEEL against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| JSWSTEEL | JSW SteelIron & Steel | 2.41 LCr | 1.71 LCr | -2.25% | +8.43% | 72.89 | 1.41 | -3.36% | -70.93% |
| JINDALSTEL | Jindal Steel & PowerIron & Steel | 90.89 kCr | 49.93 kCr | -9.23% | -15.34% | 31.94 | 1.82 | -0.50% | -52.12% |
| JSL | Jindal StainlessIron & Steel | 56.68 kCr | 38.82 kCr | +3.77% | -15.30% | 23.52 | 1.46 | -0.53% | -17.14% |
| SAIL | Steel Authority of IndiaIron & Steel | 52.33 kCr | 1.02 LCr | +3.45% | -17.53% | 23.3 | 0.51 | -5.18% | -27.54% |
| JINDALSAW | Jindal SawIron & Steel Products | 14.85 kCr | 15.4 kCr | +6.94% | -17.18% | 15.04 | 0.96 | -27.10% | -37.94% |
Investor Care | |
|---|---|
| Dividend Yield | 4.72% |
| Dividend/Share (TTM) | 7.2 |
| Shares Dilution (1Y) | 0.00% |
| Diluted EPS (TTM) | 2.19 |
Financial Health | |
|---|---|
| Current Ratio | 0.8 |
| Debt/Equity | 1.1 |