Tata Steel’s share price was in the red on Wednesday morning ahead of its earnings, scheduled to come out later today. Analysts expect the steel giant to report a revenue of ₹53,943 crore with a loss of around ₹40 crore.

What To Expect: Brokerages have mixed expectations for Tata Steel's Q2 performance, with a cautious outlook on European operations due to challenging market conditions.

Motilal Oswal expects UK losses to increase in the September quarter, with weak global steel prices weighing on European profitability. The analysts emphasise the importance of management's guidance on average selling price and cost of production across different geographies.

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PL Capital estimates EBITDA per ton to fall by ₹2,361 quarter-on-quarter to around ₹11,350 per ton for the domestic business. For Tata Steel Europe (TSE), a contribution decline is anticipated — primarily from U.K. operations — where the shutdown of a second blast furnace may add to costs, leading to a projected EBITDA loss of 230 pounds per ton.

Kotak Securities expects a 3.1% quarter-on-quarter decline in standalone steel realisations and a 12% quarter-on-quarter drop in EBITDA per ton for Tata Steel India, driven by lower realisations. In Europe, the brokerage estimates an EBITDA loss of $74 per ton, affected by higher costs tied to end-of-life assets in the UK.

ICICI Securities forecasts domestic profitability to be affected by lower steel prices, though partially mitigated by lower coking coal costs. For Europe, the research firm expects operations in the Netherlands to remain profitable at the EBITDA level, while losses at the UK unit are likely to widen.

Price Action: Tata Steel’s share price was down 1.50% to trade at ₹150 as the markets opened on Wednesday.

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