JSW Steel (JSTL IN) – Q1FY27 Result Update – Volumes to outrun cost headwinds – ACCUMULATE
Published on 18 Jul 2026
JSW Steel reported a strong operating performance in Q1FY27, supported by higher steel prices and improved profitability from JVML. Consolidated volumes (ex-BPSL) grew 4% YoY to 6.25mt, aided by higher exports (46% YoY to 0.68mt) and robust demand from the automotive, renewable energy and appliances segments. Average cons. NSR improved 17% QoQ to INR 75,782/t, supported by a 9% QoQ increase in HRC prices, improved product mix led by higher sales of value-added special products (VASP) from JVML and higher byproduct revenue. On the cost front, higher coking coal costs (US$17/t QoQ), along with increased iron ore and elevated operating costs (ME crisis impact of US$20/t), weighed on EBITDA during the quarter. At CMP, the stock is trading at 9.6x/8.3x EV of FY27/28E EBITDA. Maintain Accumulate with revised TP of INR1,351 (INR1,371 earlier) with same 8.5xFY28 EBITDA.
