JSW Steel outlook stable after credit rating affirmation

JSW Steel Limited announced on November 13, 2025, that India Ratings has affirmed its Long-Term Issuer Rating and Non-Convertible Debentures (NCD) at 'IND AA', simultaneously revising the outlook to "Stable." This change reflects the resolution of the Rating Watch following a Supreme Court judgment upholding JSWL's INR193.5 bn bid for Bhushan Power and Steel Ltd (BPSL), clarifying ownership and operational continuity.

The affirmation is driven by expectations of improved consolidated net adjusted leverage, projected to revert to around 3.5x from FY26 onwards (FY25: 4.4x; FY24: 3.4x). This improvement is anticipated due to healthy domestic demand, increased sales volume from newly commissioned capacities at Vijayanagar and BPSL, and enhanced EBITDA per tonne from backward integration and a higher share of value-added products. JSWL recorded INR883 bn in revenue for 1HFY26 with an operating EBITDA of INR146.9 bn.

Despite a substantial capital expenditure plan of approximately INR761.1 bn over FY26-FY29, JSWL's liquidity is deemed adequate. This is supported by unencumbered cash and cash equivalents of around INR186 bn and unutilized working capital lines of INR330 bn. The company aims to increase its total capacity in India to 42 mtpa by September 2027 and 50 mtpa by FY31.