JP Morgan has downgraded Tata Steel to neutral with a target price of Rs 220. Analysts noted that after a 38% rally over the past year, compared to a 5.5% drop in the Nifty, they downgraded the stock due to immediate regulatory cost headwinds in the Netherlands. The company's operations in the Netherlands face the risk of early closure of coke and gas plants, which could lead to cost implications related to raw materials, freight, and potential employee restructuring, partially offset by lower CO2 costs. Management also highlighted project delays in the UK EAF (6-8 months due to electricity connectivity) and India-NINL (FID now expected in Jul-Sep).
Tata Steel Q1FY27 Earnings Outlook Mixed
Tata Steel's Q1FY27 earnings outlook is mixed. While India and UK businesses are expected to see margin improvement, the Netherlands business will experience margin compression due to production loss at the DRI Steel Plant, as emission limits have been exceeded. Lower FY28 EBITDA by 2% is anticipated as the trajectory of earnings growth could be impacted by cost pressures, including regulatory uncertainty in the Netherlands and the West Asia conflict.
Investec Maintains Buy on SAIL with Target Price Rs 270
Investec has a buy rating on SAIL with a target price of Rs 270. Analysts said the company reported a strong operational performance in Q4FY26, with EBITDA beating estimates by 19%, driven by improved spreads. Although the Street is concerned that pricing and spreads may have peaked, analysts are taking a more constructive view, building in Rs 2,200 per tonne quarterly spread expansion for Q1FY27 and flagged further upside potential. Management guided a 16% volume growth to 22 million tonnes for FY27, expected to be achieved by FY28. The management reiterated focus on efficiencies and growth capital expenditure. Analysts reiterated SAIL as the best proxy to capture alpha on price and spread improvement induced by local tariffs.
Macquarie Rates Voda Idea as Underperform with Target Rs 9
Macquarie has an underperform rating on Vodafone Idea with a target price of Rs 9. Analysts said the company's Q4FY26 was operationally in line with estimates, with net income boosted by a one-time gain from reversal of AGR dues. VI's net subscriber base saw a mild decline of 100,000 quarter-on-quarter to 193 million, while average revenue per user (ARPU) rose 1.2% quarter-on-quarter to Rs 174 per month, compared to Bharti Airtel's 1% decline and Jio's flat ARPU. As of Q4FY26, VI's government dues stood at $16 billion, including deferred spectrum liabilities and AGR liability, following a recent AGR reassessment. In contrast, bank and financial liabilities were less significant at $400 million, while cash balance was $600 million. VI's board approved a fundraise of Rs 470 crore via issuance of warrants to the promoter group.
UBS Upgrades Delhivery to Buy with Target Rs 630
UBS has a buy rating on Delhivery with a target price raised to Rs 630. Analysts said the company reported strong Q4FY26 numbers with revenue of Rs 2,850 crore, up 30% year-on-year, ahead of expectations. This was driven by robust growth across core transport segments, including express and PTL. Alongside, there was a profitability beat led by continued margin expansion. The company's operational performance reflects strong volume momentum and effective integration of Ecom Express, while profitability was supported by sustained efficiency gains and improved segment-level execution. A key notable is sequential growth in express volumes despite Q3FY26 being a strong quarter seasonally.
Kotak Maintains Sell on Premier Engineering with Target Raised to Rs 900
Kotak Institutional Equities has a sell rating on Premier Engineering with a target price raised to Rs 900 from Rs 790. Analysts said the company delivered weaker-than-expected revenue at Rs 2,230 crore, up 38% year-on-year, 10.9% below the broker's estimate, with steady EBITDA margin despite commodity cost pressures. The company achieved module capacity target of 11.1 GW on time and remains on track for cell capacity of 10.6 GW by H1FY27. While the Transcon transformer acquisition is complete and expansion on track, the KSolare inverter acquisition did not materialize and BESS commissioning has been delayed, which was a negative. Factoring in adjustment in module and cell volumes driven by on-track commissioning, partly offset by delay in BESS, they increased the company's FY27 and FY28 earnings per share estimates by 3.5% and 2%.
