Tata Steel Q4 Results Review: Numbers Largely In Line, Debt Reduction A Positive

Jefferies maintains a 'buy' call on the steelmaker with a target price of Rs 180, and JPMorgan echoes the target price with a 'overweight' recommendation.

Brokerage firms Jefferies and JPMorgan both view Tata Steel's Q4FY25 results as in-line with expectations. (Photo source: Envato)

Tata Steel Ltd. posted a fourfold rise in net profit sequentially in the fourth quarter of the financial year 2025, at Rs 1,300 crore, as compared to Rs 326.64 crore in the preceding quarter. In terms of topline, a 4.8% sequential growth was recorded during the quarter under review.

Brokerage firms 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.

Jefferies maintained a 'buy' call on the steelmaker with a target price of Rs 180. JPMorgan echoed the target price with an 'overweight' recommendation. They mark the second highest target price on the counter.

On Europe Profitability

Among the global arms of Tata Steel, its European unit—Tata Steel Europe —recorded a 4.4% rise in revenue at Rs 19,311 crore, as compared to Rs 18,491 crore in the year-ago period.

However, the unit posted a net loss in Ebitda, which was largely in line with JPMorgan's estimates. Management commentary on the segment's expected performance in the current quarter is likely to affect share price movement, as well as potentially trigger rerating, said the brokerage.

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On Debt Reduction

The company's net debt fell 4% sequentially, noted Jefferies, adding that Tata plans to infuse up to $2.5 billion into its overseas subsidiary for debt repayment, business operations and restructuring costs.

The net debt reduction should be viewed positively, held JPMorgan. The brokerage added that the quarter under review is likely the bottom, and that they will keenly monitor management commentary.

Tata Steel Q4 Highlights (Consolidated, QoQ)

  • Revenue rises 4.8% to Rs 56,218 crore versus Rs 53,648.3 crore (Bloomberg estimate: Rs 57,295 crore).

  • Ebitda up 11.12% at Rs 6,560 crore versus Rs 5,903 crore (Estimate: Rs 6,616.1 crore).

  • Margin expands 66 basis points to 11.66% versus 11% (Estimate: 11.5%).

  • Net profit zooms 298% to Rs 1,301 crore versus Rs 326.64 crore (Estimate: Rs 1,160.4 crore).

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WRITTEN BY
Divya Prata
Divya Prata is a desk writer at NDTV Profit, covering business and market n... more
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