Tata Steel Share Price Jumps After Investment Plan Announcement

Share price for Tata Steel Ltd. jumped nearly 5% on Wednesday, after it announced that nearly 80% of the firm’s capex, estimated at around Rs 15,000 crore annually for financial year 2026 and fiscal 2027, will be invested domestically.

This includes completing the Kalinganagar expansion, a new blast furnace in Ludhiana, and continued investment in iron ore mining to support its growing operations, Chief Executive Officer TV Narendran told NDTV Profit.

The investment and expansion plans come in the backdrop of strong Q4 results. On Monday, Tata Steel reported a multifold rise in net profit by 298% to Rs 1,301 crore in the fourth quarter, compared to Rs 326.64 crore in the last quarter.

Revenue rose 4.8% to Rs 56,218 crore, against Rs 53,648.3 crore in the previous quarter. While, Ebitda was up 11.12% at Rs 6,560 crore, against Rs 5,903 crore. Margin expanded 66 basis points to 11.66%, compared to 11%.

Jefferies and JPMorgan both view the results as in-line with expectations. They especially note the company's earnings before interest, taxes, amortisation and depreciation for the fourth quarter, which though was down on an annual basis, met both firms' estimates and rose sequentially.

Share price for Tata Steel rose as much as 4.99% to Rs 157.75 apiece, the highest level since March 26, 2025. It pared gains to trade 4.85% higher at Rs 156.60 apiece, as of 10:20 a.m. This compares to a 0.70% advance in the NSE Nifty 50.

The stock has risen 13.48% year-to-date, but has fallen 5.05% in the last 12 months. Total traded volume so far in the day stood at 2.6 times its 30-day average. The relative strength index was at 61.37.

Out of 33 analysts tracking the company, 21 maintain a 'buy' rating, seven recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 1.8%.