Tata Steel shares rose around 2% in morning trade on Wednesday, 11 November 2026, and were among the top gainers on the Nifty 50 index, after brokerages gave a positive reading on the steelmaker's earnings outlook. The stock touched Rs 188.50 in early trading as investors reacted to the company's stronger performance in India. The same day, Noel Naval Tata retires as the company's vice-chairman, with his departure taking effect at the close of business.

The share move followed Tata Steel's second-quarter results, announced on 7 November, which showed consolidated net profit rising 16.2% year on year. Brokerages said operating earnings in the September quarter of FY27 came in better than expected, helped by improving steel prices and higher production volumes in India, even though the company's European operations remain under pressure.

Why brokerages turned more positive

UBS kept a Neutral rating on Tata Steel with a target price of Rs 220, noting the stronger operating performance in India while flagging the challenges in Europe. Nomura kept a Buy rating but cut its target price to Rs 210 from Rs 240, after lowering its earnings expectations for the European business. Nomura also lowered its earnings estimates for FY28 and FY29 by 7%, citing weaker European operations and longer-term risks.

The mixed brokerage view reflects the shape of the results: a strong Indian business carrying the group while the UK and European operations weigh on the total. Investors focused on the domestic improvement on Wednesday, sending the shares higher even as the wider Indian market also rallied.

The second-quarter results behind the rally

Tata Steel posted a 16.2% year-on-year increase in consolidated net profit to Rs 3,699.59 crore for the July-September quarter, compared with Rs 3,183.09 crore in the same period last year, the company said in a regulatory filing. Revenue from operations increased 11.5% to Rs 65,436.24 crore from Rs 58,689.29 crore a year earlier. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 10,665 crore, up 17% year on year, with a margin of around 16%.

India remained the cornerstone of the performance. Indian revenue stood at Rs 42,653 crore, while Indian EBITDA was Rs 10,634 crore, a margin of 25%. Crude steel production in India increased 7% sequentially to 6.18 million tonnes, while deliveries rose 16% to 5.98 million tonnes. The company produced 8.07 million tonnes of steel across the group and sold 7.92 million tonnes in the quarter. Chief Executive and Managing Director T. V. Narendran said India volumes grew 16% quarter on quarter despite a seasonally softer quarter, reflecting the strength of the company's market presence.

Europe remains the worry

The European business continued to drag on the group. In the UK, quarterly EBITDA losses widened to Rs 720 crore from Rs 340 crore in the previous quarter, as lower volumes and narrower steel spreads weighed on the business. The Netherlands operations improved after a plant restart, with EBITDA per tonne of Rs 6,085, but the UK business is only expected to break even in the March quarter.

Tata Steel's net debt stood at Rs 91,423 crore at the end of the quarter, with a net debt-to-EBITDA ratio of 2.4 times, and group liquidity was Rs 40,076 crore, including cash and cash equivalents of around Rs 10,300 crore. The company spent around Rs 3,280 crore on capital projects during the quarter, taking first-half spending to Rs 6,860 crore, with expansion work under way including a 4.8 million tonnes per annum capacity expansion at Neelachal Ispat Nigam.

Noel Tata steps down as vice-chairman

Noel Naval Tata will retire as Non-Executive, Non-Independent Director and Vice-Chairman of the board with effect from the close of business hours on 11 November 2026, in line with Tata Group governance guidelines. He has been associated with the company since March 2022, and the board has placed on record its appreciation of his contributions.

Whether Wednesday's gain holds will depend on domestic steel demand, raw material costs and international steel prices, and on whether Tata Steel can improve its UK business while sustaining the momentum in India and the Netherlands.

Sources: MyFinBright and TradingView News / Moneycontrol. This article is for information only and is not investment advice.