Tata Steel share price target after Q3 results: MOSL says 'outlook bright'; predicts 22% upside

Tata Steel Shares: Shares of Tata Steel rallied 3 per cent to hit an all-time high of Rs 203.00 on the BSE today, February 9. At 11:36 AM, the Tata Group company’s shares were trading 2.31 per cent higher at Rs 201.60 per share.

Tata Steel Q3 Results FY 2026

Last week, Tata Steel reported its earnings for the third quarter ended December 31, 2025. The Tata Group company reported an increase of 722.3 per cent year-on-year (YoY) to Rs 2,689 crore in the reporting quarter against Rs 327 crore posted in the same quarter of the previous financial year.

The company's revenue from operations was at Rs 57,002 crore in the quarter under review against Rs 53,648 crore. This represents a year-on-year increase of 6.3 per cent YoY.

India revenues were at Rs 35,725 crore and EBITDA was Rs 8,291 crore, which translates to a margin of 23 per cent. Crude steel production was up 12 per cent YoY to 6.34 million tons. Improved production led to ‘bestever quarterly’ deliveries to the tune of 6.04 million tons, up 14 per cent YoY.

Motilal Oswal said that Tata Steel management’s indicated Q3FY26 likely marks the bottom for domestic steel prices, particularly for flat products, with 4QFY26 likely to see a sequential improvement in prices and EBITDA/t.

The brokerage expects Rs 2,300/t quarter-on-quarter (QoQ) improvement in India realisations in 4Q as spot steel prices in India have improved meaningfully since December 2025.

It further said that coking coal costs on a consumption basis are expected to be higher by USD15/t in 4Q.

Tata Steel Share Price Target

Motilal Oswal has given a ‘BUY’ rating with 22 per cent upside on Tata stock. The brokerage has recommended a target of Rs 240. It said that Tata posted a decent performance in 3QFY26 as anticipated, primarily driven by healthy volume, offset by muted NSR in India. The combined EBITDA in Europe weakened due to muted earnings at the Netherlands operation, while

the UK operating loss remained flat QoQ.

The brokerage firm further said that EBITDA performance in European operations is expected to improve in the coming quarters on account of its cost-restructuring measures.

It has raised FY26E earnings (EBITDA by over 2 per cent and PAT by over 3 per cent), fueled by the better volume and NSR outlook. Motilal Oswal also marginally raised its EBITDA for FY27E by 2 per cent to reflect the improved outlook on pricing and costs.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)