Tata Steel’s stock price jumped over 6% on Friday, following a bold new transformation plan announced by its Dutch subsidiary, Tata Steel Nederland (TSN). The company’s shares climbed to ₹134.95 on the Bombay Stock Exchange as investors cheered the move aimed at turning around the struggling European operations.
What’s Happening in the Netherlands?
Tata Steel Nederland is undergoing a major shake-up. The company has announced it will cut around 1,600 jobs, mostly in management and support roles, as part of a broader plan to become one of Europe’s most efficient and environmentally friendly steelmakers.
The goal? Save about €500 million annually by the 2026–27 financial year.
Alongside cost-cutting, TSN is streamlining its product range, improving efficiency, and focusing heavily on cleaner steel production. The transformation also aligns with Europe’s growing push toward green industry practices. In fact, Tata Steel’s Dutch plant at IJmuiden has faced criticism for its high pollution levels, making the environmental shift both a strategic and necessary move.
Why This Matters to Investors
Despite posting a loss of €556 million in FY24, mainly due to high energy costs and soft demand, this strategic shift has reassured investors that Tata Steel is serious about turning things around.
Brokerages are reacting positively:
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JPMorgan has an “Overweight” rating and set a target price of ₹180, a potential upside of over 33%.
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Macquarie sees it hitting ₹156 and keeps its “Outperform” rating.
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CLSA holds a “Neutral” stance with a ₹145 target.
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Citi, however, remains cautious and has maintained a “Sell” rating, warning about global tariffs and demand risks.
Looking Ahead
The cost-cutting plan is expected to begin showing results in the second quarter of FY26, with full impact by the end of that fiscal year. Importantly, the company says the overhaul won’t need significant new capital spending, which makes the initiative even more attractive from a financial standpoint.
With operations in the Netherlands now back to nearly full capacity, producing about 6.75 million tonnes of liquid steel annually, this move could mark a major turning point for Tata Steel’s European journey.
