Brokerage firm Macquarie Group said steel stocks have corrected about 7–8% since February 2026, offering an attractive entry point. The firm highlighted that steel price hikes of 12–13% since mid-December 2025 are beginning to reflect in spreads, which have improved from $260 per tonne in December to $310 in Q4 FY26, and are now around $340 per tonne.
This recovery is expected to support profitability, with EBITDA per tonne likely to rise by over ₹1,500 in the March quarter, with further upside anticipated in the June quarter if current price trends sustain.
Macquarie also pointed to healthy domestic demand, rising regional steel prices, and moderation in Chinese steel production as supportive factors. It maintains an ‘outperform’ rating on JSW Steel, Jindal Steel and Power and Tata Steel, with JSW Steel as its top pick.
Separately, HSBC remains constructive on Tata Steel, raising its target price to ₹250 and upgrading earnings estimates for FY27–28 by 5–14%. The brokerage cited stronger import protection across key markets, following tariff measures in the UK, Europe’s Carbon Border Adjustment Mechanism (CBAM), and India’s safeguard duties.
Also Read: Tata Steel shares can rise another 31%, HSBC says, as import protections in place
Adding to the positive momentum, Tata Steel recently commissioned its first scrap-based Electric Arc Furnace in India, with an investment of around ₹3,200 crore, signalling a push towards cost efficiency and sustainability.
Shares of Tata Steel, JSW Steel and Jindal Steel were all trading higher during the session, reflecting improved investor sentiment around the sector.
