Tata Steel [1] shares surged by 6% on Friday, April 11, reaching an intraday high of ₹134.95 per share on the Bombay Stock Exchange (BSE). The sharp rise followed Tata Steel Nederland’s request for advice to the Central Works Council to initiate consultation on key aspects of its transformation program.
As of 9:29 AM, Tata Steel’s stock was up 3.69% at ₹131.9 per share, while the BSE Sensex gained 1.55%, standing at 74,989.98. The company’s market capitalization was ₹1,63,970.02 crore, with the stock’s 52-week high and low recorded at ₹184.6 and ₹122.6 per share, respectively.
Tata Steel Nederland has launched a broad transformation effort to maximize production efficiencies, reduce fixed costs, and optimize its product mix and margins. This initiative includes process standardization, increased automation, and the elimination of operational redundancies. In FY2025, Tata Steel Nederland saw a recovery, with liquid steel production volumes reaching near capacity at 6.75 million tonnes per annum, following disruptions in FY2024 due to a delayed blast furnace reline. However, the European operations continue to face challenges due to geopolitical uncertainties, trade and supply chain disruptions, and escalating energy costs.
As part of its restructuring strategy, Tata Steel Nederland plans to cut 1,600 jobs from its total workforce of approximately 9,000 in Ijmuiden, Netherlands. Of the targeted EUR 500 million in cost reductions, EUR 120-160 million is expected to come from employee-related expenses, with additional savings of EUR 50-60 million anticipated by FY2027. A comprehensive consultation will be conducted over the coming weeks to address these proposed changes.
Market analysts at Motilal Oswal believe the restructuring could help reduce employee and operational costs, leading to structural improvements in profitability. The brokerage maintains a ‘Neutral’ rating on Tata Steel with a target price of ₹140 per share. While near-term challenges persist due to global trade uncertainties, the Indian business remains strong, and an improvement in European operations is expected to support overall earnings. Analysts also caution that escalating trade tensions could impact commodities like ferrous metals, making tariff developments a critical factor to monitor.
Over the past year, Tata Steel’s stock has declined by 23%, contrasting with the Sensex’s marginal dip of 0.53%. Investors will be watching the company’s transformation program closely to assess its impact on long-term growth and profitability.
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[1] Tata Steel share price jumps 6% in trade; What’s boosting surge in stock? https://www.business-standard.com/markets/news/tata-steel-share-price-jumps-6-in-trade-what-s-boosting-surge-in-stock-125041100194_1.html