Jefferies has reaffirmed its Buy rating on JSW Steel with a target price of ₹1,200, implying a 15% upside from the current market price of ₹1,044.80. The brokerage highlighted a strong operating performance in Q1FY26, supported by robust volume growth and higher realizations.
EBITDA for the quarter rose 37% year-on-year and 19% sequentially, coming in 5% above Jefferies’ estimates. This was driven by a 9% YoY increase in volumes and a sharp 33% quarter-on-quarter jump in EBITDA per tonne to ₹11,300, led by improved realizations.
Looking ahead, Jefferies expects margins to contract in Q2FY26, given that spot steel prices in India are currently 4% below the Q1 average. However, it also pointed out that the Asian steel spread remains 30% below the long-term average, leaving room for improvement if spreads expand.
Despite trimming its FY26–28 EPS estimates by 3–9%, the brokerage maintains a positive stance, backed by expectations of a 9% volume CAGR in India over FY25–27E and a favourable cost structure.
Disclaimer: The brokerage view is based on publicly available research and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
