Macquarie Revises Targets for Steel Majors; Strong Q4 EBITDA Seen for Coal India to Tata Steel

Global brokerage Macquarie Group has revised its target prices for key Indian metal and mining companies, including Coal India Limited and Tata Steel, citing expectations of robust EBITDA performance in the fourth quarter.

According to the brokerage, India’s steel sector is poised to deliver strong operational earnings driven by stable domestic demand, improved realizations, and lower input costs. Macquarie highlighted that easing raw material prices, particularly coking coal, have supported margin expansion across major steel producers.

For Tata Steel, the firm expects a sequential improvement in profitability, aided by better pricing in the domestic market and cost efficiencies in its India operations. While European operations continue to face headwinds due to subdued demand and higher energy costs, the overall performance is projected to remain resilient.

Coal India, on the other hand, is expected to benefit from steady demand from the power sector and improved e-auction realizations. The company’s strong production and dispatch volumes are likely to translate into healthy earnings growth for the quarter.

Macquarie has also taken a positive view on other steel players, pointing to strong infrastructure spending and construction activity in India as key demand drivers. Government-led capital expenditure and ongoing industrial growth have provided a supportive environment for the sector.

The brokerage noted that while global uncertainties and volatility in commodity prices remain risks, Indian metal companies are relatively well-positioned due to their focus on domestic markets and cost competitiveness.

Investors are now closely watching the upcoming Q4 results season, with expectations of improved margins and earnings momentum across the steel and mining space. Macquarie’s revised targets reflect growing confidence in the sector’s near-term outlook and operational strength.