ET Intelligence Group: Tata Steel expects margins to improve in the current financial year, supported by higher steel prices, rising domestic volumes and continued cost savings. However, increasing raw material costs and execution risks in Europe may limit the extent of margin expansion. The company's shares fell 3.5% in two trading sessions after it announced results late Friday.Realisations in India are expected to rise by around ₹6,000 per tonne sequentially in the June 2026 quarter helped by safeguard duties and tighter imports while the UK realisations are likely to improve by £80 per tonne sequentially and Netherlands realisations by 80 per tonne. This will be partly driven by renewed automotive contracts at higher rates, but the bulk of the benefit from these contracts will flow into the September quarter, said the management in the earnings call.However, these gains will be partially offset by rising input costs. Coking coal consumption costs are likely to rise by $15 per tonne in India and $10 per tonne in the Netherlands. Additionally, freight and logistics costs may also increase because of geopolitical tensions in West Asia. The company's efforts to streamline operations will be crucial in reducing the effect of input cost inflation. It achieved cost savings of ₹10,868 crore in FY26 and is targeting an additional ₹7,100 crore in savings for FY27.Agencieshard metal Co pins hopes on increasing product prices and demand, execution in Europe a concernEurope remains a key overhang on Tata Steel's earnings outlook. In the Netherlands, rising regulatory scrutiny and tighter emission norms are creating operational uncertainty. In the UK, execution risks persist as delays in securing high power electricity infrastructure are likely to push back the commissioning of the electric arc furnace project.The company expects volumes to rise by an additional two million tonnes from nearly 32 million tonnes in FY26, supported by the ramp-up of the expanded capacity at Kalinganagar in Odisha and the newly commissioned electric arc furnace at Ludhiana in Punjab.Tata Steel has guided for capex of around ₹20,000 crore, primarily directed towards expansion projects in India. While this investment is expected to support long-term growth, it may moderate free cash flow and slow the pace of deleveraging in the near term.JM Financial Institutional Securities has revised the FY27 earnings per share estimate upwards by 4.6% to ₹15.3 and increased the forecast for operating profit before depreciation and amortisation (Ebitda) by 2% to ₹43,695 crore. The brokerage has maintained a Buy rating on the stock and raised the price target by 4% to ₹255. The stock ended Tuesday's session at ₹209.3 on the BSE.