3 Tata Group Stocks to Watch as Buzz About Tata Sons IPO Grows

#1 Tata Steel

First on our list is the stock of Tata Steel. The company is a global steel major with strong operations in India and Europe.

According to reports, Tata Steel owns a 3.06% in Tata Sons. If Tata Sons lists, its market valuation becomes visible, which means Tata Steel's stake suddenly has a clearly defined value. This may lead to a re-rating of Tata Steel's balance sheet, as investors start factoring in this "hidden asset."

In FY26, Tata Steel India achieved 'best-ever annual' crude steel production of 23.48 million (m) tons. Production was up 8% YoY primarily aided by Kalinganagar ramp up, partly offset by shutdown of 'G' blast furnace for relining at Jamshedpur. In Q4 FY26, crude steel production stood at 6.25 m tons, up 15% YoY.

In terms of expansion, the management in an earnings concall in February 2026 said that the NINL expansion is currently making good progress. The company is a few weeks away from getting the environment clearance. The project according to the management should take about 35-40 months to get into the execution level.

Tata Steel prospects are driven by robust domestic demand, capacity expansion, and a shift toward value-added products. India operations are performing well with record production and rising volumes, supported by infrastructure growth and government policies.

How Tata Steel Shares Have Performed Recently

In the past one month, shares of Tata Steel have gained 13%.

The stock touched its 52-week high of Rs 216.5 on 25 February 2025 and a 52-week low of Rs 130.4 on 11 April 2025.

#2 Tata Chemicals

Next on our list is the stock of Tata Chemicals.

Tata Chemicals, is a leading supplier of choice to glass, detergent, industrial and chemical sectors. The company has a strong position in the crop protection business through its subsidiary, Rallis India.

According to reports, Tata Chemicals holds a 2.53% stake in Tata Sons.

Moving ahead, the company reported a subdued set of results for Q3 FY26. Losses doubled to Rs 1,060 m vs Rs 530 m YoY.

According to the management, soda ash prices remain challenging across most geographies, with prices in certain markets approaching record low levels on persistent oversupply and muted demand.

In India, domestic list prices remain under pressure, declining marginally in Q3, driven by continued import competition and weak pricing sentiment. In US, spot exports prices continue to soften, especially to the Southeast Asian markets.

Overall, in the short term, the company is facing pressure mainly due to its core product, soda ash. Global oversupply and weak pricing have hurt margins and profitability, leading to muted revenues and even losses in recent quarters.

However, the company is shifting from a commodity-focused business to higher-margin specialty chemicals, which should help.

How Tata Chemicals Shares Have Performed Recently

In the past one month, shares of Tata Chemicals have gained 6%.

The stock touched its 52-week high of Rs 1,026 on 17 September 2025 and a 52-week low of Rs 581.3 on 30 March 2026.

#3 Tata Power Company

Next on our list is the stock of Tata Power.

The company is a leading integrated power company and a part of the Tata Group. It owns a diversified portfolio of 16.3 GW.

This portfolio spans the entire power value chain, from renewable and conventional energy generation to transmission, distribution, trading, storage solutions, and solar cell and module manufacturing.

Tata Power owns 1.65% of Tata Sons and should the company go public it will reveal real value of the holdings.

On the financial front, Tata Power reported revenues of Rs 139,484m vs Rs 153,911 m YoY. The net profits of the company were flat at Rs 9,956 m YoY.

Moving ahead, the company's power portfolio is expected to expand significantly in the next few years. The PSP project in Bhivpuri and the hydro plant in Bhutan are on in full swing and the management remains confident that they will meet the timelines that have been set by the company for both these projects.

Many of Tata Power's other businesses, including the transmission businesses, have started showing results. The company has recently been able to commission some of its TBCB projects such as the 400 kV Koteshwar-Rishikesh transmission line.

It has also got a letter of intent in the recently for the Hinjewadi line and the company is expecting some more projects in Q4 FY26.

How Tata Power Shares Have Performed Recently

In the past one month, shares of Tata Chemicals have gained 4%.

The stock touched its 52-week high of Rs 418.4 on 20 March 2026 and a 52-week low of Rs 342.35 on 27 January 2026.

Conclusion

The Tata Sons IPO can help in value unlocking, especially in companies where this stake forms a meaningful part of the valuation.

However, the IPO is not confirmed, and some gains may already be priced in. Investors should treat this as an additional trigger rather than the main reason to invest, focusing instead on fundamentally strong businesses with long-term growth potential.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...