JSWSTEEL
Large CapJSW Steel Limited
Metals
JSW Steel Limited is a leading Indian steel manufacturer with significant capacity expansion plans. The company reported strong Q4 FY26 and FY26 results, marked by substantial deleveraging, strategic joint ventures with JFE Steel and POSCO, and a focus on value-added products, sustainability, and digitalization.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +14% YoY · PAT +1182% YoY · margin expansion · +11% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹51,180 Cr | +14.2% | +11.3% |
| EBITDA | ₹8,464 Cr | +38.0% | +32.7% |
| Operating margin | 17.0% | +300 bps | +300 bps |
| PAT | ₹19,243 Cr | +1182.0% | +698.5% |
| PAT margin | 37.6% | +3425 bps | +3236 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 Net Profit surged to ₹19,243 crore (incl. exceptional gain), with consolidated crude steel sales up 6% YoY. FY26 saw 12% YoY sales growth and significant deleveraging, with Net Debt/EBITDA improving to 1.81x from 3.34x in FY25.
The company's thesis remains intact, supported by strong deleveraging post the JFE JV, ambitious capacity expansion plans, and strategic partnerships. While Q4 production was flat QoQ due to a BF shutdown, sales volumes grew, and management's focus on VASP and cost leadership through resource optimization is positive. Monitoring execution of large capex and commodity price volatility is key.
Domestic Sales by Customer Segment (Q4 FY26)
Latest issuer-disclosed distribution across 4 reported categories.
India's Steel Demand Growth
India is going through a Nation-Building Phase, with long runway of Steel Demand Growth outpacing Real GDP Growth.
Strategic Joint Ventures
JV with JFE Steel for BPSL business (10mtpa by 2030) and 50:50 JV with POSCO for a 6mtpa greenfield plant in Odisha by 2031.
Capacity Expansion Projects
Approved 5mtpa brownfield expansion at JVML-Vijayanagar and Dolvi Phase-III expansion from 10 to 15mtpa by Sep'27.
Value-Added Product Portfolio
Highest ever VASP sales in Q4 FY26, up 17% YoY, with share of VASP sales at 62%. Management aims to maintain >50% share.
Vijayanagar BF-3 Expansion
Expansion of BF-3 from 3.0mtpa to 4.5mtpa is under testing and commissioning.
Dolvi Phase-III Expansion
Expansion from 10 to 15mtpa, with civil work and equipment erection underway, to be completed by Sep'27.
JSW Utkal Greenfield Project
5mtpa Greenfield project: Two Pellet Plants (8mtpa each) by FY28; 5mtpa Blast Furnace, 6mtpa SMS, 6mtpa HSM-2 by FY30.
JVML-Vijayanagar Phase-2 Expansion
Board approved 5mtpa brownfield expansion at JVML-Vijayanagar.
Indian Economic Momentum
Strong economic momentum in H2FY26, spurred by GST reforms and robust Central Govt. capex outlook (FY27 budget up 11.5%).
Benign Inflation & Forex Reserves
Key tailwinds include benign inflation currently and sizeable forex reserves, supporting economic stability.
Global Steel Balance Improvement
Improvement in steel spreads on better global steel balance, partially offset by inflationary pressures.
Middle East Conflict Impact
Middle East crisis causing supply disruptions, inflationary risks (particularly energy), and pressure on interest rates.
Rural Demand Risk
Rural indicators are robust currently; however, possibility of below-normal monsoon is a risk.
Operating Cost Inflation
Cost at Indian operations increased mainly due to higher coking coal costs and higher power & fuel costs on a QoQ basis.
Fluctuations in Earnings
Future growth prospects involve risks and uncertainties that could cause actual results to differ materially from forward-looking statements.
Intense Competition
Intense competition within the Steel industry, including factors that may affect cost advantage.
Project Overruns
Time and cost overruns on fixed-price, fixed-time frame contracts and ability to commission mines within contemplated time and costs.
Reduced Demand for Steel
Risks include reduced demand for steel, impacting sales volumes and realizations.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth and annual trends, especially for sales and profitability. QoQ comparison is important for the Metals sector to track sequential momentum in volumes, realizations, spreads, and input costs like coking coal and power & fuel, which directly impact EBITDA per tonne.
Consolidated Crude Steel Production
Q4 FY26: 7.49mt (down 2% YoY, flat QoQ); FY26: 30.14mt (up 8% YoY).
Consolidated Steel Sales
Q4 FY26: 7.97mt (up 6% YoY, 4% QoQ); FY26: 29.63mt (up 12% YoY).
India Capacity Utilisation
96% in Q4 FY26 and 92% in FY26 (excl. Vijayanagar BF-3 which is under shutdown).
Adjusted EBITDA
Q4 FY26: ₹9,713 crore (up 50% YoY, 47% QoQ); FY26: ₹32,048 crore (up 40% YoY).
Capacity Target
Maintain FY31 India target of 50mtpa (+JVs). Target of 62mtpa (+JVs) by FY32.
VASP Sales Share
Maintain >50% share of Value-Added and Special Products (VASP) in total sales.
Decarbonisation Target
Targeting Net Neutrality in carbon emissions by 2050, with a 42% reduction of CO2 to 1.95 tCO2/tcs by FY30.
FY27 Capex Outlook
Capex spend for FY27 expected at ₹22,000-24,000 crores.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Debt to EBITDA | 1.81x (Q4 FY26) | Adherence to the revised downward stated cap of 3.00x, especially with ongoing capex. |
| India Capacity Utilisation | 96% (Q4 FY26, excl. BF-3 shutdown) | Ramp-up of new capacities and sustained high utilization rates across operations. |
| VASP Sales Share | 61% (FY26) | Maintaining >50% share in total sales, indicating product mix premiumization. |
| FY27 Crude Steel Production Guidance | 29.75mt (Consolidated Operations) | Achievement of production guidance, reflecting successful capacity ramp-ups and market demand. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +9.1% / mo
Technical chart
JSWSTEELweekly · 6M+12.1%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 53.
- RSI(14) at 53 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 5% off 52W high · 18% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 14.2%.
- Piotroski is strong at 8/9.
- Cash flow contributes 10/10 to the score.
Main drags
- Fair-value margin of safety is negative at -28.6%.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Quality is weaker at 4/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 82nd percentile of the scored universe and 88th percentile within Metals. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero. Key concern: 3 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Metals: 88th pctile, median 68 · Large: 63rd pctile, median 74
118 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 14.2%.
- ▸10 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸3 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 33.90
- P/B
- 3.08
- EV/EBITDA
- 10.46
- Market Cap
- 308250.00Cr
Profitability
- ROE
- 10.10%
- ROCE
- 10.90%
- ROA
- 9.46%
- Dividend Y
- 0.56%
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 3.00%
- Revenue 3Y
- 4.00%
- EPS 3Y
- 34.00%
Balance Sheet
- Debt/Equity
- 0.99
- Interest Coverage
- 3.22×
- Altman Z
- 2.79
- Book Value
- 409.00
Cash Flow
- FCF Yield
- 14.22%
- FCF Positive Y
- 10/5
- OCF
- 25152.00 Cr
- EPS TTM
- 91.26
Shareholding
- Promoter Hold
- 45.31%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 81%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Metals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.