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JSW Steel Ltd
NSE: JSWSTEEL BSE: 500228 INE019A01038 Commodities Metals 🔎 Screen
NIFTY 50 NIFTY 100 NIFTY 200 NIFTY 500 Metal Commodities
₹310,200 Cr
Market Cap
12.5
P/E
0.15
PEG
11.0%
ROCE
10.2%
ROE
0.99
D/E
17.0%
OPM
+4.3%
% from 52W High
70
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

JSW Steel is primarily engaged in the business of manufacture and sale of Iron and Steel Products. It is the flagship business of the diversified, US$ 23 billion JSW Group.The Group has interests in energy, infrastructure, cement, paints, sports, and venture capital.

✓ Strengths 1
  • Company has been maintaining a healthy dividend payout of 19.8%
! Concerns 4
  • Stock is trading at 3.14 times its book value
  • Promoter holding has decreased over last quarter: -1.01%
  • Company has a low return on equity of 8.97% over last 3 years.
  • Earnings include an other income of Rs.18,981 Cr.
Key Ratios Snapshot
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📈 Growth Pattern
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Strong beat on margins and deleveraging, but volumes dipped QoQ and retail sales fell YoY amid import pressure. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹47,364 Cr
+19% YoY vs proforma ₹39,880 Cr; driven by higher realisations
EBITDA Margin
19.8%
Adj. EBITDA margin 19.8% vs 17.8% in Q4 FY26 PF; +200bps QoQ
PAT
₹4,696 Cr
+110% YoY vs proforma ₹2,239 Cr; lower finance cost & tax rate
Net Debt/EBITDA
1.46x
Sharp improvement from 3.20x a year ago; net debt down to ₹46,157 Cr
What Went Right
  • Consolidated crude steel production up 3% YoY to 6.59mt, India capacity utilisation at 94% (excl. BF-3 shutdown) vs 88% in Q1 FY26.
  • Adjusted EBITDA surged 32% QoQ to ₹9,373 Cr, with India operations recording ₹9,096 Cr (+32% QoQ PF).
  • Net debt reduced by ₹33,693 Cr YoY to ₹46,157 Cr, driven by ₹37,000 Cr deleveraging from JSW JFE JV; net debt/equity fell to 0.42x.
  • VASP sales grew 8% YoY to 3.65mt, comprising 61% of total sales; record Q1 flats sales (+9% YoY) and auto segment sales (+18% YoY).
  • Credit ratings upgraded by Fitch (BB+ Positive) and CARE (AA+ Stable); JFE’s second tranche of ₹7,875 Cr received as scheduled.
What to Watch
  • Consolidated steel sales fell 12% QoQ to 6.25mt, partly due to seasonal destocking and BF-3 shutdown at Vijayanagar.
  • Retail segment sales declined 9% YoY to 769kt, impacted by higher imports and geopolitical uncertainty; branded products fell 24% QoQ.
  • India turned net importer of steel in Q1 FY27, with imports of 1.59mt vs exports of 0.46mt, pressuring domestic pricing.
  • Share of profit from joint ventures was a loss of ₹98 Cr in Q1 vs profit of ₹59 Cr in Q4, reflecting initial JV ramp-up costs.
  • Consolidated sales volume guidance for FY27 of 28.6mt implies H2 volumes must exceed H1 by ~14% to meet target, a stretch given current run-rate.
Management Guidance
  • FY27 total consolidated volumes: production 29.75mt, sales 28.6mt (includes BMM Ispat; excludes JSW JFE JV).
  • Maintain FY31 India target of 50mtpa (+JV’s) and FY32 target of 62mtpa, delivering 13% CAGR of total capacity.
  • Maintain >50% share of VASP in total sales.
  • Stated caps: net debt/equity ≤1.25x, net debt/EBITDA ≤3.00x (revised down from 1.75x and 3.75x in Q4 FY26).
Investor Lens
JSW Steel delivered a strong margin beat and accelerated deleveraging, with net debt/EBITDA dropping from 3.20x to 1.46x YoY, largely thanks to the JFE JV cash infusion. However, volume momentum remains a concern — QoQ sales fell 12%, and the retail segment is under pressure from cheaper imports. The FY27 volume guidance of 28.6mt implies the back half must average ~7.5mt/quarter, well above Q1's 6.25mt, which looks challenging without a sharp demand recovery. On the positive side, cost leadership improved with 94% capacity utilisation (ex-BF-3), and VASP share staying at 61% supports pricing. Key next quarter watchpoints: ramp-up of Vijayanagar BF-3, import trends post-tariff actions, and Q2 volume trajectory — a miss on the 28.6mt target would test the current valuation multiple. The POSCO JV and Utkal expansions provide long-term optionality, but near-term earnings depend on realisations holding up against rising raw material costs.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Steel volumes lift revenue 9.8% YoY; net profit more than doubles to ₹4,696 Cr
Revenue
Revenue rose 9.8% YoY to ₹47,364 Cr, driven by higher steel volumes. However, sequentially revenue declined 7.5%, likely due to seasonal or pricing pressures.
Profitability
Net profit surged 112.6% YoY to ₹4,696 Cr, with EPS improving to ₹19.02 from ₹8.93. The sharp sequential drop of 75.6% in net profit needs monitoring, impacted by higher interest and depreciation.
Margins
Operating profit margin expanded to 20% from 17% both YoY and sequentially, reflecting better operational efficiency. Operating profit grew 24.2% YoY despite revenue dip.
Cash Flow
Cash flow data not provided in the results.
Balance Sheet
Debt-to-equity ratio stands at 0.99, indicating manageable leverage. No further balance sheet details available in this release.
Key Risks
High leverage (D/E 0.99) and commodity price volatility are key risks. A sharp QoQ profit decline of 75.6% raises concerns about earnings sustainability.
Outlook
Strong YoY earnings and margin expansion are positive, but sequential weakness and high debt warrant caution. Continued steel demand and cost control will be critical for future performance.
Generated by AI · Jun 2026 results · Not investment advice
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Investment Risk:
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