Moody’s upgrades JSW Steel outlook to positive on growth, disciplined expansion

Moody’s Ratings has revised the outlook for JSW Steel and its US subsidiary Periama Holdings LLC to positive from stable, citing the company’s significant capacity expansion and disciplined growth strategy.

The agency affirmed the Ba1 ratings but noted that JSW Steel’s production capacity has already risen 20% in 15 months to 35.7 million tonnes per annum (mtpa), with plans for a further 20% increase by 2028.

Moody’s expects JSW Steel’s EBITDA per tonne to average ₹10,500-10,750, in line with its decade-long trend, and projects earnings to climb to ₹300 billion in FY26 and ₹350 billion in FY27.

The ramp-up of newly commissioned facilities and additional debottlenecking projects at Vijayanagar, Salem, Dolvi and BPSL are expected to boost sales volumes to nearly 32 million tonnes by FY27.

Analyst Hui Ting Sim said the positive outlook reflects JSW Steel’s scale, earnings visibility and ability to refinance its large debt maturities while maintaining financial discipline.

India’s steel demand, growing at 5-7% annually on the back of infrastructure and industrial expansion, underpins the company’s growth prospects.Read about our editorial guidelines and ethics policy