JSW Steel
JSW Steel is one of India's largest integrated steel makers, producing flat and long steel products from plants in Karnataka, Maharashtra, Odisha and overseas (US, with JV capacity in India too).
- P/E ~12x vs sector ~20x
- Net debt/EBITDA 1.81x
- Results due 23 Oct 2026
- Q4 FY26 profit inflated by one-off
- Promoter pledge 11.6%
Updated on 15 Oct 2026 · Data as of 15 Oct 2026
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Snapshot
- Share price
- ₹1,200.40
- 15 Oct 2026
- 52-week range
- ₹1,073.14 – ₹1,341.00
- All-time peak
- ₹1,341.00
- 26 Aug 2026 · −10.5% from peak
- Dividend yield
- 0.59%
- Price history since
- 2003
- About 23 years of prices
What's happening
JSW Steel reports Q2 FY27 (July-Sept 2026) results on 23 October 2026 - about a week away. The stock has been volatile this month: it fell over 4.5% on 8 October after an earlier rally, and sits 10.5% below its 26 August 2026 peak of ₹1,341. Separately, the government's 12% safeguard duty on imported flat steel (in force since April 2025, tapering to 11% by 2028) continues to shield domestic producers like JSW Steel from cheap Chinese and Vietnamese imports.
In plain terms
This is a steel company, and steel is a cyclical, capital-intensive business - profits swing hard with steel prices and raw material costs. The headline Q4 FY26 profit of ₹19,243 crore looked spectacular but was almost entirely a one-off ₹17,888 crore accounting gain from selling the Bhushan Power and Steel (BPSL) unit into a joint venture; strip that out and the real quarterly profit was about ₹3,475 crore. The more recent June-2026 quarter (₹4,696 crore profit, up 112% year-on-year) is genuine operating improvement, but it was driven more by better margins than by selling more steel - that's a more fragile kind of growth in a commodity business.
Quarters
Q1 FY27 (quarter to June 2026): revenue ₹47,364 crore (+19% YoY), EBITDA ₹9,383 crore (+38% YoY), PAT ₹4,696 crore (+112% YoY), but production volume grew only 3% YoY - so the profit jump is mostly price/margin, not tonnes sold. Q4 FY26 (quarter to March 2026): reported PAT of ₹19,243 crore is NOT comparable to any other quarter - it includes a ₹17,888 crore exceptional gain from the BPSL slump sale; normalized PAT was closer to ₹3,475 crore. Q2 FY26 (quarter to Sept 2025) PAT is reported inconsistently across sources as ₹1,623-1,646 crore - treat the exact figure as approximate. Management's FY27 guidance is for 29.75 million tonnes production (+13%) and capex of ₹22,000-24,000 crore for capacity expansion.
Performance
Heads-up on splits: JSW Steel has split its shares or issued bonus shares before (most recently 10-for-1 on 4 Jan 2017 and ×0.04 on 21 Feb 2005). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
+4.0% over 1 year
Returns by period
| Period | JSW Steel | Nifty 50 | Tata Steel |
|---|---|---|---|
| 3 months | −1.7% | −4.5% | −4.9% |
| 1 year | +4.0% | −9.2% | +3.9% |
| 3 years | +54.3% | +16.6% | +48.0% |
| 5 years | +76.5% | +24.5% | +45.0% |
₹100 invested on 18 Oct 2021 became…
- JSW Steel₹176
- Nifty 50₹124
- Tata Steel₹145
The stock has beaten both the Nifty and peer Tata Steel on every horizon shown: 1Y +4.0% vs Nifty -9.2% and peer +3.9%; 3Y +54.3% vs +16.6% and +48.0%; 5Y +76.5% vs +24.5% and +45.0%. The current 10.5% pullback from the August 2026 peak is a normal correction, not a crash - there's no demerger or spin-off in the corporate-action history to adjust for (the only actions are two stock splits, in 2005 and 2017, which are already reflected in the price series). Worth noting: a 76% five-year return is only around 12% a year compounded - solid but not spectacular for a stock that has gone through a steel upcycle.
Dividend
Paid in the last 12 months
₹7.10 per share
Dividend yield
0.59%
Dividend yield is the last 12 months of dividends divided by today's share price. A 0.6% yield means every ₹100 of JSW Steel shares paid about ₹0.6 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 7 Jul 2026 | ₹7.10 |
| 8 Jul 2025 | ₹2.80 |
| 9 Jul 2024 | ₹7.30 |
| 11 Jul 2023 | ₹3.40 |
| 4 Jul 2022 | ₹17.35 |
| 5 Jul 2021 | ₹6.50 |
| 6 Jul 2020 | ₹2.00 |
| 8 Jul 2019 | ₹4.10 |
Valuation
P/E is about 12.16x against an industry median near 20x, and P/B is 2.88x - on the surface this looks cheap. Why it may be cheap: steel is a commodity business with volatile, capex-heavy earnings that the market structurally discounts versus other sectors, and the reported ROE of 28.5% is likely flattered by the BPSL one-off gain sitting in trailing twelve-month earnings - Not verified whether the ROE figure strips this out. Whether it is actually cheap depends on whether the margin gains seen this quarter (aided by safeguard duty) are sustainable once that duty tapers off by 2028.
Growth
Growth right now is margin-led, not volume-led: in the latest quarter EBITDA grew 38% while volumes grew only 3% and revenue grew 19%. That's a classic warning sign in a commodity business - margin expansion from duty protection and lower input costs can reverse quickly, whereas genuine tonnage growth is stickier. The company's FY27 guidance (+13% production) and long-term plan to reach 62 million tonnes capacity by FY32 (from ~38 million tonnes now) point to future volume growth, but that is a multi-year capex story, not a current-quarter fact.
Health
Net debt fell to ₹53,870 crore by March 2026 (net debt/equity 0.51x, net debt/EBITDA 1.81x), largely because the BPSL slump sale brought in cash. A separately reported debt-to-equity ratio of 1.10x doesn't obviously reconcile with the 0.51x net-debt/equity figure - Not verified which measure uses what denominator, so treat both as directionally indicative rather than precise. The bigger watch item is the ₹22,000-24,000 crore FY27 capex plan: profits are converting to cash and the balance sheet has improved, but a sustained heavy capex cycle could push leverage back up. Business/cyclicality risk (steel prices, raw materials) is the dominant concern here, not near-term solvency.
Ownership
Promoters hold 44.29% (down slightly from 45.32% a year earlier), with 11.60% of that promoter stake still pledged as of June 2026 - though a pledge release on about 1.6 crore shares happened in July 2026, a modestly positive sign. FIIs hold 20.03% and DIIs 11.49%. No marquee individual investor (e.g., a well-known value investor) showed up in available shareholding data - Not verified, check on Screener for the full list of public shareholders above 1%.
The View
The one thing to watch
The Q2 FY27 results on 23 October 2026 - whether margin expansion continues on an operating (non-exceptional) basis, and whether volumes start contributing more to growth than price/margin alone.
Strengths
- +Net debt cut to ₹53,870 crore (net debt/EBITDA 1.81x) after the BPSL slump sale, improving balance sheet flexibility
- +Q1 FY27 EBITDA grew 38% YoY to ₹9,383 crore, ahead of 19% revenue growth
- +12% government safeguard duty on steel imports (since April 2025) reduces competition from low-cost Chinese/Vietnamese steel through at least 2028
- +Clear capacity roadmap (from ~38 million tonnes to 62 million tonnes by FY32) backed by stated capex guidance
Watchpoints
- !Q4 FY26's ₹19,243 crore headline profit is not a repeatable run-rate - normalized profit for that quarter was ~₹3,475 crore
- !Growth is currently margin-led (volumes +3% vs EBITDA +38%), which is less durable than volume-led growth in a commodity business
- !11.60% of promoter shares remain pledged as of June 2026
- !₹22,000-24,000 crore FY27 capex plan could re-lever the balance sheet that was just repaired via the BPSL sale
How sure are we about the data? · Moderate
Cross-checked quarterly results and the BPSL exceptional-gain explanation across Business Standard, Investing.com/company transcripts, and the company's own results-presentation PDF - these agree on the ₹17,888 crore one-off. Q2 FY26 PAT is reported inconsistently (₹1,623 crore vs ₹1,646 crore) across sources - exact figure not resolved, check on Screener. Debt-to-equity (1.10x) vs net-debt-to-equity (0.51x) could not be reconciled from available sources. ROE/ROCE figures could not be confirmed as excluding the BPSL one-off gain. Specific brokerage price targets were deliberately omitted from this report.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 15 Oct 2026.