Tata Steel shares rise 7% in 3 sessions; up 31% by 2025. What’s driving the latest increase?

Shares of Tata Steel rose as much as 3% to an intraday high of Rs 181 on December 31 after the Indian government announced the imposition of a safeguard duty on imports of certain steel products, a measure aimed at curbing cheap shipments and protecting domestic producers. With today’s rise, the stock is up 7% in 3 sessions and 31% in 2025.According to a finance ministry decision released on Tuesday, India will impose a safeguard duty of 11% to 12% on selected steel imports for a period of three years. The duty will be introduced in phases, starting at 12% in the first year, relaxing to 11.5% in the second year and further to 11% in the third year.

The measure is intended to protect the domestic steel industry from a rise in cheap imports, especially from countries such as China. The decision, published in the official government gazette, applies to imports from China, Vietnam and Nepal, among others. However, it excludes certain developing countries as well as specialty steel products such as stainless steel.The safeguard obligation follows recommendations from the Directorate General of Trade Remedies (DGTR), which highlighted a “recent, sudden, sharp and significant increase in imports” that posed a threat to the domestic steel industry. The DGTR had raised concerns that the volume and prices of imports were hurting Indian steelmakers.

The Federal Ministry of Steel has maintained that imposing the safeguard duty is necessary to protect domestic producers from the impact of substandard and cheap steel inflows. According to the ministry, such imports undermine the competitiveness of local producers and disrupt market stability.

The latest move also comes against the backdrop of heightened global trade tensions. Earlier this year, the United States imposed tariffs on steel imports, prompting retaliation in several regions. Countries such as South Korea and Vietnam responded with their own anti-dumping measures to protect domestic industries.

India’s decision to impose safeguard duties is seen as part of this broader global effort to stabilize local industries amid aggressive export pricing strategies and changing trade dynamics.

Tata Steel Q2 Results

Tata Steel reported a 272% increase in consolidated net profit in the second quarter at Rs 3,102 crore, compared to Rs 833 crore in the same period a year ago. The profit after tax (PAT) is attributable to the owners of the company.

The company’s operating revenue in the quarter under review stood at Rs 58,689 crore, up 9% from Rs 53,904 crore in the corresponding quarter of the last fiscal.

The company’s profit after tax (PAT) rose 49% QoQ compared to Rs 2,077 crore in Q1-26, while revenue rose 10% from Rs 53,178 crore reported in the April-June quarter of FY26.

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