February 10, 2026
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Tata Steel Ltd Q3FY26 Results: Net Profit Jumps 723%, Beats Street Estimates as India Operations Shine
Tata Steel delivered a strong earnings surprise for Q3FY26, reporting a consolidated net profit of Rs. 2,688.70 crore, a sharp 723% year-on-year surge compared with Rs. 326.64 crore in the same quarter last year. The performance comfortably beat Bloomberg consensus estimates of Rs. 2,527.61 crore, underscoring the company’s operational resilience despite a weak global steel pricing environment.
The sharp year-on-year jump was aided by a low base effect, as Tata Steel Europe had taken heavy write-offs last year following blast furnace shutdowns. However, the real story this quarter lies in India operations, where higher volumes, operating leverage and tight cost control helped offset multi-year low steel prices.
India Business: Margins Hold Firm Despite Weak Prices
Domestic steel prices remained at multi-year lows during most of the December quarter, pressuring spot spreads. Yet Tata Steel’s India operations delivered an EBITDA margin of around 23%, highlighting the strength of its product mix, downstream focus and raw-material integration.
According to CFO Koushik Chatterjee, the company continues to focus on:
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Volume growth
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Downstream value-added products
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Strengthening raw-material linkages
These factors allowed Tata Steel to protect profitability even as flat product prices touched their lowest levels in nearly five years, as noted by CEO T.V. Narendran.
EBITDA Strength Stands Out Among Peers
Consolidated EBITDA for the quarter rose 38.9% YoY to Rs. 8,199 crore, compared with Rs. 5,903 crore last year.
What stood out was EBITDA per tonne of around Rs. 12,000, significantly higher than peers:
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JSW Steel / JSPL: Rs. 7,000–8,000 per tonne
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SAIL: ~Rs. 4,600 per tonne
This gap reflects Tata Steel’s structural cost advantages, superior product mix and operating discipline, allowing it to outperform even in a challenging steel cycle.
Sequential Numbers: Mild Cooling After a Strong Q2
On a sequential basis, net profit declined 13% QoQ from Rs. 3,102 crore in Q2FY26, while revenues slipped 3%. This moderation reflects:
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Lower steel realisations
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Seasonally weaker pricing in early Q3
Despite this, consolidated revenue still grew 6% YoY to Rs. 57,002.40 crore, up from Rs. 53,648.30 crore last year.
Europe Remains a Drag, Hope Hinges on Policy Support
Tata Steel’s European operations continued to face headwinds:
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Netherlands EBITDA fell to €55 million from €92 million in Q2FY26
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UK losses narrowed slightly to £63 million, from £66 million
Management expects relief from two major regulatory triggers:
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CBAM (Carbon Border Adjustment Mechanism)
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Revision of EU safeguard measures from June 2026
According to management, these measures should structurally improve pricing and competitiveness for EU steel producers, although near-term visibility remains uncertain.
Volumes, Capex and Balance Sheet Comfort
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India crude steel production rose 12% QoQ to 6.34 million tonnes
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Deliveries increased 9% to 6.04 million tonnes
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Quarterly capex stood at Rs. 3,291 crore
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Net debt declined by Rs. 5,206 crore QoQ to Rs. 81,834 crore, strengthening the balance sheet
The company also reported exceptional charges due to India’s new Labour Codes:
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Rs. 61.11 crore (standalone)
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Rs. 81.79 crore (consolidated)
Tata Steel Share Price: Technical Snapshot (As on 10 Feb 2026 – Opening)
Price & Trend
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Last Close: Rs. 202.00
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52-Week High / Low: Rs. 206.34 / Rs. 125.30
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Trend: Bullish across short, medium and long term
Momentum & Returns
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1 Day: +2.51%
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1 Week: +7.16%
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1 Month: +12.15%
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3 Months: +13.95%
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1 Year: +53.24%
Key Technical Indicators
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RSI: 64.86 (strong momentum, not overbought)
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MACD: Bullish crossover (MACD 4.96 > Signal 4.48)
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ADX: 28.71 (strong trend strength)
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Bollinger Bands: Price near upper band (Rs. 202.42) → breakout zone
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Parabolic SAR: Rs. 182.55 (strong trailing support)
Important Levels
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Immediate Support: Rs. 198 – Rs. 196
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Pivot Support: Rs. 201.96
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Resistance Zone: Rs. 206 – Rs. 211
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Break above Rs. 206 can open the path toward Rs. 220+
Bottom Line
Tata Steel’s Q3FY26 results reinforce its position as one of the most structurally efficient steel producers in India. While Europe remains a near-term overhang, India-led earnings strength, improving balance sheet and supportive technical structure keep the stock well-placed.
Outlook:
📌 Operationally strong
📌 Technically bullish
📌 Medium-term trend remains positive, with volatility linked to global steel prices
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