JSW Steel shares gain over 2% as Q1 earnings boost investor sentiment

Shares of JSW Steel gained over 2 per cent on Monday after the company reported a sharp jump in its June quarter earnings and approval to participate in the proposed initial public offering (IPO) of JSW One Platforms Ltd (JOPL) as a promoter selling shareholder.

The stock traded at ₹1,260 on the NSE at 10.19 am after touching an intraday high of ₹1,265.40, compared with its previous close of ₹1,237.30.

The company’s net profit for the June quarter of FY27 more than doubled to ₹4,696 crore from ₹2,209 crore in the corresponding period last year, largely driven by better realisation and a fall in finance cost.

The company’s board also approved its participation in the proposed IPO of JSW One Platforms Ltd as a promoter selling shareholder. It plans to sell equity shares worth up to ₹811 crore through an offer for sale (OFS).

Jefferies reiterated its buy rating on JSW Steel with a target price of ₹1,650 and retained the stock as its top buy in the India metals sector. The brokerage raised its FY27-28 earnings per share estimates by 1-4 per cent and expects earnings per share to treble over FY26-29. It expects quarterly EBITDA to increase from ₹94 billion in the June quarter to an average of ₹110 billion during the rest of FY27. It also highlighted the company’s plan to double steelmaking capacity to 80 million tonnes by FY32.

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Motilal Oswal said JSW Steel’s earnings were broadly in line with expectations, supported by improvement in net sales realisation, and reiterated its buy rating with a target price of ₹1,470. The brokerage maintained its FY27 and FY28 earnings estimates and said improving captive iron ore availability, better coal security, new capacity additions and robust domestic steel demand are expected to support margin expansion. It also noted that the transfer of BPSL to the JFE joint venture reduced consolidated debt to ₹462 billion as of June 2026, improving the net debt-to-EBITDA ratio to 1.46x from 1.81x in Q4FY26.

Emkay Global reiterated its add rating with an unchanged target price of ₹1,400, saying earnings are expected to strengthen over FY26-29, supported by a favourable domestic pricing environment and an 8 per cent volume CAGR.

Meanwhile, Elara Capital revised its rating to reduce from sell while raising its target price to ₹1,259 from ₹1,149. The brokerage said stronger-than-expected steel price realisations prompted an increase in its EBITDA estimates for FY27E-29E, although it expects volume growth to moderate following the deconsolidation of BPSL and sees continued cost pressure from higher coking coal costs in the near term.