Tata Steel‘s share price was upbeat on Thursday even as the company’s June quarter results missed street estimates on revenue and profit.

What Happened: The steel giant reported a consolidated net profit of ₹959 crore for the quarter, marking a 51% increase from ₹633 crore in the same period last year. However, its revenue for the quarter was ₹55,031 crore, an 8% decline from ₹59,015 crore year-on-year.

These figures fell short of analysts’ expectations, who had projected revenue at ₹57,250 crore and net profit at ₹1,110 crore. The company’s EBITDA for the quarter was ₹6,694 crore, yielding an EBITDA margin of 12.2%.

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Brokerage Reactions: Analysts at Jefferies maintained a “buy” rating on Tata Steel, with a target price of ₹195. The company’s Q1 reported EBITDA increased by 29% year on year and 1% quarter on quarter, 7% above the analysts’ estimates.

This rise was attributed to the better-than-expected performance of non-TSE subsidiaries. In Europe, the Netherlands operations turned positive in EBITDA after six quarters, although the U.K. business continued to experience EBITDA losses.

JP Morgan maintained an “overweight” rating on Tata Steel, with a target price of ₹190. They noted that Tata Steel’s Q1 EBITDA overall exceeded expectations, with performance in both India and Europe being slightly better than anticipated.

The brokerage did not see any negatives from the Q1 report. However, net debt increased by 6% quarter on quarter, and it emphasised that management’s commentary on debt reduction would be important.

Price Action: Tata Steel’s share price was up 1.06% to trade at ₹167.09 as the markets opened on Thursday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.