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JSW Steel Ltd.’s Q3 FY26 performance was above the brokerage’s estimates. Revenue increased by 2% QoQ, driven by 4% volume growth as Dolvi, JVML and BPSL capacities ramped up. NSR decreased 3% QoQ, owing to a decline in steel prices.
Ebitda decreased by 9% QoQ to Rs 6,500 crore, while Ebitda per tonne fell by 12% QoQ to Rs 8,503/tonne, driven by lower realization, $5/tonne increase in coking coal costs, partially offset by savings in power costs.
Management expects HRC prices to improve further driven by strong seasonal demand. JSW announced a 5MTPA steel plant in Odisha with a capex of Rs 31,600 crore with commissioning expected by FY30 and further expandable up-to 13.2 MTPA.
The brokerage rolls forward to FY28E Ebitda estimates and assign EV/Ebitda multiple of 9x to FY28E Ebitda, to derive a target price of Rs1,115. Maintains Hold rating on the stock.
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