Tata Steel, JSW Steel near highs: targets for 2026

Why steel stocks are back in focus

Shares of Tata Steel and JSW Steel have moved close to their record highs as the broader market shows signs of recovery on hopes of a peaceful resolution between the US and Iran. Investor sentiment around metal stocks has stayed positive amid expectations of Q4 earnings updates and next-year guidance from key steelmakers. Rising demand linked to infrastructure and EV-related supply chains is also part of the backdrop supporting the move. At the same time, fears of supply disruptions due to Middle East geopolitical tensions have kept commodity markets and metal counters in focus. Commodity prices have also shown signs of recovery, which has added to the momentum.

What investors are watching in Q4

Both Tata Steel and JSW Steel are expected to factor in the Middle East conflict, the consumption outlook, and provide guidance for the next financial year in their Q4 earnings. For investors, the focus is likely to remain on the extent of steel price recovery, the trend in raw material costs such as coking coal, and whether spreads hold up. Brokerages have also highlighted the role of policy support in India, including safeguard duties and stricter import norms, as key variables influencing domestic realizations.

Tata Steel: price action near record levels

Tata Steel closed at ₹211 in the previous session and has gained 8% in two weeks. The stock hit a record high of ₹216.50 on February 25, 2026, and is up 16.39% so far this year. Separately, Tata Steel jumped around 5% to a fresh record high on February 9 after it released Q3 FY26 results, with brokerages pointing to in-line earnings. The stock also hit a fresh 52-week high of ₹206.34 in that session, and featured among the top gainers on the Sensex, Nifty and the Nifty Metal index, which was up around 2%.

Tata Steel Q3 FY26 highlights cited by brokerages

Tata Steel’s management said production and deliveries for India operations were higher by 12% and 14% respectively, with Q3 deliveries of 6.04 million tonnes crossing the 6 million tonne mark for the first time. JM Financial maintained a ‘Buy’ rating and raised its target price to ₹240 from ₹215, citing consolidated EBTITDA of ₹8,276 crore, marginally above its estimate of ₹8,000 crore. JM Financial also noted that Indian operations spreads were trending up alongside higher steel prices, while Europe awaited CBAM and quota-related changes.

Tata Steel: broker targets and key calls

Multiple brokerages have updated their views and targets for Tata Steel based on pricing, volumes, and cost trends. HSBC has a ‘Buy’ call with a price target of ₹250. Macquarie has an ‘Outperform’ rating and raised its target to ₹241 from ₹222. Centrum Broking named Tata Steel its top pick with a target of ₹218, while Systematix has a ‘Buy’ with a target of ₹230. Axis Securities has also maintained a ‘Buy’ rating with a target price of ₹219.

JSW Steel: record high and recent momentum

JSW Steel closed at ₹1,274.85, rising 2.82% in the previous session. The stock has gained 12.44% in two weeks and is up 9% so far this year. JSW Steel hit a record high of ₹1,284.55 on February 25, 2026. Brokerages have linked the outlook to steel price recovery, capacity ramp-up and domestic demand trends.

JSW Steel: broker targets and outlook metrics

Macquarie has an ‘Outperform’ call on JSW Steel and raised its target price to ₹1,353 from ₹1,319. Centrum Broking has a target of ₹1,294, while Systematix has a ‘Hold’ with a target of ₹1,162. Axis Securities expects double-digit revenue growth for JSW Steel over FY26 to FY28, driven by capacity ramp-up and steel price recovery linked to the safeguard duty. It also said operating profit per tonne could rebound to ₹13,500 in 2026-27/FY28, supported by domestic steel price recovery, with input costs expected to remain stable. Axis has a ‘Buy’ rating with a target price of ₹1,400.

Policy and demand backdrop: safeguard duty and consumption growth

Steel stocks have also been supported by a sharp recovery in domestic prices after the government imposed a 12% safeguard duty in mid-December 2025. Domestic steel prices were described as recovering sharply by over ₹5,000 per tonne, with prices recovering towards ₹49,000 per tonne by December 2025. ICICI Securities said it does not foresee any major impact from ongoing geopolitical tensions because exports account for less than 6% of total steel production. Fitch Ratings has projected India’s steel consumption growth at 8% to 9% over the next few years, supported by infrastructure, construction and manufacturing demand.

Technical setup: where Tata Steel and JSW Steel stand

Both Tata Steel and JSW Steel are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day moving averages, indicating a bullish technical zone based on the reported indicators. Tata Steel’s RSI was at 64.3, while JSW Steel’s RSI stood at 65.4. In both cases, the RSI readings were described as neither overbought nor oversold.

Key data snapshot

What could move these stocks next

Near-term attention is likely to stay on Q4 earnings commentary, including how companies account for Middle East-related risks, consumption outlook and next-year guidance. Investors are also tracking the durability of the domestic price recovery following the safeguard duty, and whether higher input costs like coking coal offset the pricing tailwind. Any updates on trade barriers and Europe-specific policy changes such as CBAM-related developments remain relevant for Tata Steel’s consolidated performance. For JSW Steel, broker commentary has repeatedly pointed to capacity ramp-up and per-tonne profitability as key markers.

Conclusion

Tata Steel and JSW Steel have approached their record highs amid a mix of stronger domestic demand signals, policy-led steel price recovery and improving commodity sentiment. Brokerages have issued a wide set of targets across both stocks, while technical indicators also point to a bullish zone. The next major trigger will be Q4 earnings, where both companies are expected to discuss the Middle East conflict’s impact, the consumption outlook, and guidance for the next year.