Pricing strength drives performance Quick Note

Research evidence excerpt

Pricing strength drives performance Quick Note

Global Markets Research

Tata Steel TISC.NS TATA IN 30 July 2026

EQUITY: METALS & MINING

RatingPricing strength drives performance Remains Buy

Target price INR 240 RemainsQuick Note

Closing price INR 187 30 July 20261QFY27 results: Realization-led EBITDA beats expectations despite elevated cost

pressure

• 1QFY27 consolidated adjusted EBITDA of INR92.64bn marginally beat our Research Analysts

forecast and the Bloomberg consensus estimate by 3% and 2%, respectively. The

beat was driven by stronger-than-expected realizations. India Metals & Mining

Jashandeep Singh Chadha - NFASL

• Consolidated steel realizations improved by over INR11,066/t q-q (+15% q-q), jashandeep.singhchadha@nomura.com

ahead of our estimate of over INR6,500 q-q growth. Meanwhile, standalone +91 22 40374124

realizations improved by over INR9,250/t q-q, ahead of our expectations by 5%.

Notably, domestic HRC prices rose sharply by ~9% q-q during 1Q, while European

HRC prices rose 8% q-q.

• Consolidated volumes increased 2% y-y to 7.27MT, largely in line with our

estimate, with volumes in the Netherlands impacted by the direct sheet plant

shutdown.

• Raw material costs/t increased 5% q-q to INR31,574/t, primarily due to higher coking

coal consumption costs.

• Conversion costs/t also surged sharply by 25% q-q to INR39,306/t, reflecting elevated

power and fuel costs, following disruptions in West Asia, as noted by the company.

• As a result, adjusted consolidated EBITDA/t improved to INR12,743/t, up by over

INR8,000/t sequentially and ~INR460/t q-q ahead of our expectation.

• Capacity expansion: The board approved 4.8MT steelmaking capacity expansion at

Neelachal Ispat Nigam Ltd (NINL), involving a capex of INR338.7bn aimed at