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Tata Steel soars, but EU's a risk

Mint Hyderabad

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October 07, 2025

Weighed down Tata Steel's European operations have been a drag on its consolidated financials.

- Ananya Roy feedback@livemint.com

Riding a broad metals rally, Tata Steel Ltd has more than quadrupled investor wealth over the past five years. Industry tailwinds pushed the stock to a fresh 52-week high of ₹174.74 on 3 October.

Optimism around potential US rate cuts, which could weaken the dollar and benefit commodities, including steel, has bolstered sentiment. Further support is expected from anticipated import tariffs in Europe and a long-overdue reduction in China's steel output, which should lift realizations and margins.

This comes at a critical juncture for the steel major, whose consolidated Ebitda margin has compressed to 12% in FY25 from 26% in FY22. While margins rebounded to 14% in QIFY26, Tata Steel's European operations continue to weigh on consolidated financials. By contrast, QIFY26 standalone Indian business posted a robust margin of 23.4%.

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