Why JSW Steel's strong Q1 may not be the biggest positive

JSW Steel reported Q1FY26 consolidated revenue of Rs 42,894 crore (up 15 percent YoY) with Ebitda from Indian operations rising 32 percent to Rs 9,100 crore on 11 percent higher realisations. The bigger positive was balance sheet deleveraging, with consolidated net debt-to-Ebitda improving to 1.46x from 1.81x after a Rs 7,870 crore inflow from JFE for the JSSL joint venture and Rs 21,000 crore debt transfer, prompting a Fitch upgrade to BB+. Management guides for lower Q2 realisations on monsoon demand weakness and an additional 12 to 15 dollar per tonne coking coal cost, while the stock trades at 10.3x FY27 estimated Ebitda versus a long-term average of 8.2x.