JSW Steel has good prospects on lower costs but stock fully valued

Revenue growth could come from volumes along with some price recovery. As input costs are soft, EBITDA margin may rise to 18-19 per cent if safeguard duty is in force

For the April-June quarter of the financial year 2025-26 (Q1FY26), JSW Steel reported consolidated revenue of ₹43,200 crore flat year-on-year (Y-o-Y) and down 4 per cent quarter-on-quarter (Q-o-Q)), with good net sales realisations (NSR) offset by weak Q-o-Q volume growth.

 

Steel volumes stood at 6.69 million tonnes (mt) (up 9 per cent Y-o-Y and down 11 per cent Q-o-Q), due to planned shutdowns, while average sale price (ASP) was ₹64,500 per tonnes (down 8 per cent Y-o-Y and up 8 per cent Q-o-Q), indicating recent price recovery.

 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) was at ₹7,580 crore, an