Tata Steel (LSE:TTST) ROCE %: 12.93% (As of Mar. 2026)


LSE:TTST Tata Steel Ltd LSE:TTST
77 GF Score
Price $20.40
GF Value $17.66
Valuation Modestly Overvalued
! 8 Warning Signs
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What is Tata Steel ROCE %?

Tata Steel LSE:TTST 77 ROCE % is 12.93% as of Mar. 2026. GuruFocus rates LSE:TTST with a GF Score™ of 77/100 and a GF Value™ of $17.66 (Modestly Overvalued). The stock has 8 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tata Steel's annualized ROCE % for the quarter that ended in Mar. 2026 was 12.93%.

Tata Steel  (LSE:TTST) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tata Steel ROCE % Related Terms

Tata Steel ROCE % Historical Data

* Premium members only.

The historical data trend for Tata Steel's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Tata Steel ROCE % Chart

Tata Steel Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.50 12.23 3.46 8.39 11.24

Tata Steel Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.25 10.26 12.25 11.25 12.93
LSE:TTST
77GF Score
Tata Steel Ltd LSE:TTST
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tata Steel ROCE % Calculation

Tata Steel's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=2492.588/( ( (32291.988 - 9950.551) + (32456.362 - 10441.663) )/ 2 )
=2492.588/( (22341.437+22014.699)/ 2 )
=2492.588/22178.068
=11.24 %

Tata Steel's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=2845.456/( ( (0 - 0) + (32456.362 - 10441.663) )/ 1 )
=2845.456/( ( 0 + 22014.699 )/ 1 )
=2845.456/22014.699
=12.93 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 12.93% mean?
Tata Steel (LSE:TTST) has a ROCE % of 12.93% as of Mar. 2026.
Is Tata Steel's ROCE % too high?
Tata Steel's current ROCE % is 12.93%. The Steel industry median ROCE % is 5.63. Tata Steel's value of 12.93% is 129.9% above this industry median. Overall, Tata Steel has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tata Steel's ROCE % compare to NUE and STLD?
Tata Steel's ROCE % of 12.93% can be compared against companies in the Steel industry. The industry median ROCE % is 5.63. Tata Steel's value of 12.93% is 129.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Steel company?
The median ROCE % among Steel companies is 5.63, based on 624 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Steel's current ROCE % of 12.93% is 129.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Steel industry, the median ROCE % is 5.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Steel's current ROCE % is 12.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Steel stock overvalued right now?
Based on GuruFocus' analysis, Tata Steel (LSE:TTST) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.66, compared to a current price of $20.40 — trading 15.5% above its estimated fair value. The current ROCE % is 12.93% and 129.9% above the Steel industry median of 5.63. Tata Steel's overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tata Steel (LSE:TTST), the current ROCE % is 12.93% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tata Steel (LSE:TTST) Overvalued in 2026?

Based on GuruFocus' analysis, Tata Steel stock appears to be overvalued. The current stock price of $20.40 is trading 15.5% above its estimated GF Value™ of $17.66. GuruFocus considers Tata Steel to be Modestly Overvalued.

Key valuation signals for LSE:TTST:

  • ROCE %: 12.93%
  • GF Value™: $17.66 vs. price of $20.40 (15.5% above fair value)
  • GF Score™: 77/100 with 8 warning signs
  • Industry Position: 129.9% above the Steel median

No single metric tells the full story. See the LSE:TTST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tata Steel Business Description

Address 24 Homi Mody Street, Bombay House, Fort, Mumbai, MH, IND, 400 001
Tata Steel Ltd is an India-based company that is engaged in the production and marketing of various steel products. Its products are basically classified into flat products and construction products. Flat products include hot-rolled steel, cold-rolled steel, metallic-coated steel, direct-coated steel, tubes, packaging steel, electro-plated steel, and narrow strips. Its segments include Tata Steel India, Neelachal Ispat Nigam Limited, Other Indian operations, Tata Steel Europe, Other trade related operations, South-East Asian operations, and Rest of the world. It generates the majority of its revenue from the Tata Steel India segment.
77GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$20.40
Price
$17.66
GF Value