Street View: India's Tata Steel slides on profit miss, concerns over Netherlands operations
18/05/2026 05:42
** Shares of Tata Steel TISC.NS down 4.2% at 207.75 rupees, highest intraday pct fall since January 2025
** Steelmaker posts consol Q4 net profit of 29.26 billion rupees, missing analysts' estimate of 30.8 billion rupees, per data compiled by LSEG
REGULATORY HEADWINDS CLOUD OUTLOOK
** Citi ("Sell"; PT: 200 rupees) flags impending closure of coke ovens creating uncertainty
** Expects India EBITDA/t to expand in Q1 and Netherlands EBITDA/t to be relatively flat due to volume loss; sees 6,000 rupees/ tonne increase in realizations
** Goldman Sachs ("Neutral"; PT: 218 rupees) notes potential disruption in operating rhythm of Tata Steel Netherlands owing to environmental footprint concerns in a complex regulatory environment
** HSBC ("Buy"; PT: 260 rupees) says weaker growth pipeline vs JSW Steel and Netherlands regulatory issues will keep valuation multiples discounted
** Despite medium-term challenges, expects strong earnings growth supported by higher steel prices
** BoFA ("Neutral"; PO: 220 rupees) lowers Netherlands profitability forecasts on carbon emissions compliance, partially offset by lower UK losses due to revisions to the UK safeguards and rupee depreciation; cuts FY28E EBITDA by 2%
(Reporting by Mridula Kumar in Bengaluru)
((Mridula.Kumar@thomsonreuters.com;))