JSW Steel (JSTL IN) – Q4FY26 Result Update – Scaling aggressively, executing consistently – ACCUMULATE
Published on 15 May 2026
JSW Steel reported strong operating performance in Q4FY26 led by sharp recovery in steel prices, healthy domestic demand and continued ramp-up at JVML. Cons. volumes grew 6% YoY to 7.97mt despite 3mtpa BF-3 shutdown at Vijayanagar, aided by strong domestic demand and higher exports from India (+36% YoY). Average cons. NSR increased 6.7% QoQ as domestic steel prices recovered sharply during the quarter post safeguard duty implementation, while product mix also improved with higher downstream utilization and branded sales contribution. Higher coking coal costs (+$16/t QoQ) along with elevated freight and FX-related costs were partly offset by better operating leverage. Cons. adj. EBITDA/t improved sharply to INR12,187 (adj for forex loss of INR10.8bn; PLe INR10,847). Mgmt. has undertaken further price hikes of INR2,000/1,000 in Apr/May’26, while guiding for higher $12-15/t in coking coal costs during Q1FY27. Further, mgmt. has guided for 10% sales growth and 13% production growth in FY27, while expecting domestic steel demand growth at 7-9%. Maintain Accumulate with revised TP of INR1,381 (INR1,289 earlier) with same 8.5xFY28 EBITDA.
