Tata Steel reported a sharp rise in consolidated net profit for Q3 FY24, posting ₹2,689 crore—marking a significant 723% year-on-year surge. This impressive rebound was driven by improved operating margins and resilient domestic demand. Revenue also rose 6% to ₹55,312 crore.

Despite the upbeat earnings, analysts remain cautious on the stock’s near-term upside. While brokerages such as Motilal Oswal and Kotak Institutional Equities have maintained a “buy” rating, they note that gains may be limited given muted global steel prices and persistent weakness in European operations. Input cost moderation and better realizations have aided the quarter’s performance, especially in India, where demand from construction and infrastructure remained robust.

However, Tata Steel’s international businesses, particularly in Europe, continue to face macroeconomic challenges, pressuring overall margin sustainability. As the company pushes forward with its strategic decarbonization and capital expenditure plans, investor focus is likely to remain on margin outlook and cost management.With the stock already factoring in much of the domestic growth, analysts suggest any further upside will depend on sustained profitability across geographies and improvement in international market conditions.

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