Steel companies share price today

Shares of steel manufactures were trading higher up to 4 per cent on the BSE in Tuesday’s intra-day trade on expectations of strong domestic demand.

Steel Authority of India (SAIL), Tata Steel, Jindal Steel and JSW Steel were up in the range of 2 per cent to 4 per cent. In comparison, the BSE Sensex was up 0.3 per cent at 75,733.61 at 10:45 AM.

In the past one month these stocks have declined at a slower pace (4.5 per cent to 6.7 per cent), as compared to 9 per cent fall in the benchmark index. Further, in the past six months, they rallied between 5 per cent and 13 per cent, as against 8 per cent decline in the BSE Sensex.

Why did steel stocks outperform the market in recent past?

Indian steel industry continues to enjoy robust demand for steel, with consumption during 9-month FY25-26 growing by almost 7 per cent over the same period last year. The growth in production of crude steel has been still higher, at around 9.5 per cent during the same period. This has led to India again becoming a net exporter, as exports grew by around 33 per cent to stand at 4.8 million tonnes, vis-à-vis imports, which reduced by about 37 per cent to 4.65 million tonnes this time, SAIL, the state-owned company, said in its Q3 earning conference call.

Meanwhile, in the ferrous space, analysts at ICICI Securities don’t foresee any major impact due to ongoing geopolitical tensions as exports share of total steel production is pegged at <6 per cent. There could be minor trade disruptions, however is not expected to have any meaningful impact on domestic players, the brokerage firm said.

Thermal coal prices in Q4FY26TD have increased by 12 per cent QoQ compared with the Q3FY26 average, raising input costs for sponge iron producers. Consequently, industry players are unlikely to undertake aggressive price cuts, as the higher coal costs will need to be passed through to steel prices, thereby supporting pricing discipline. This dynamic is expected to create a positive bias for primary long steel prices, said analysts at Elara Capital.

Brokerages view on SAIL, Tata Steel, JSW Steel

Going ahead, with domestic steel prices witnessing a sharp recovery (up >₹5,000/tonne) post government’s imposition of 12 per cent safeguard duty in mid-December 2025, analysts at ICICI Securities expect domestic steel players to witness healthy improvement in profitability with gains to some extent capped by recent rise in coking coal prices (up ~₹1,500/tonne QoQ). Nonetheless, continued focus on reducing employee and other operating costs should support margins ahead.

With safeguard duty led steel price hike, favourable demand tailwinds, and focus on cost optimization, SAIL is expected to deliver improved performance ahead. With supportive valuations (trades at 6x EV/EBITDA on FY28E, lowest amongst its peers), the brokerage firm has a BUY rating on SAIL with a target price of ₹200, valuing it at 7x on FY28E EV/EBITDA.

On a consolidated basis, Tata Steel’s EBITDA will be better in Q4FY26 QoQ, with volumes increasing by almost 0.5 MT QoQ. Higher steel prices in India will offset higher coking coal consumption cost which will drive higher spreads in Q4FY26. Capex sequencing will remain aligned to balance sheet strength, preserving flexibility through the cycle. Also, Cost transformation continues to anchor earnings despite macro volatility, analysts at Axis Securities said. The brokerage firm has a ‘Buy’ rating on Tata Steel with a target price of ₹219 per share.

Motilal Oswal Financial Services believes JSW Steel is well-placed with new capacities coming on-stream, strong domestic demand, and a rising share of value-added proportion in the sales mix. Its focus on increasing the captive share of iron ore and improving coal linkages will support earnings.

Going forward, the brokerage firm estimates double-digit revenue growth over FY26-FY28, driven by the ramp-up of new capacity and price recovery led by safeguard duty. Further, as input costs are expected to remain steady, analysts believe EBITDA/t will rebound to ₹13,500/t in FY27/28E on account of domestic steel price recovery, led by safeguard duty. The brokerage firm has a ‘buy’ rating on JSW Steel with a target price of ₹1,400 per share. ==================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.