JSW Steel Share Price Under Pressure Despite 158% Profit; Time To Buy The Sajjan Jindal-Backed Metal Stock

JSW Steel shares are trading red on Monday, despite the strong June quarterly results reported last week. The Sajjan Jindal-led metal producer reported a whopping 158% year-on-year increase in its net consolidated profit in Q1FY26. The company also reported strong revenue growth and improvement in EBITDA margins.

JSW Steel shares were trading 0.82% lower at Rs 1026 per share on BSE on Monday at 12:42 pm. The company scrip opened higher at Rs 1055 per share, but later declined and even touched an intraday low mark of Rs 1018.55 per share.

JSW Steel Q1 Review

Better realisation, product mix, savings in coking coal, and fixed cost impact from lost volumes helped JSW Steel earnings in the June quarter of the financial year 2025-26, according to Emkay Research. The brokerage has indicated that the company may see improvement in revenue and earnings growth due to favourable earnings momentum for the financial year 2025-26.

"We expect a favourable earnings momentum for FY26E, supported by volume ramp-up as well as our view that there would be pent-up demand once seasonal effects recede, which would support steel prices. Our ground checks in China indicate signs of firming up of domestic demand alongside potential of supply discipline," noted Emkay Global in its report.

The consolidated topline growth of JSW Steel stood at Rs 43,147 crore with steel sales volume of 6.7 MT. It not only reported strong profit but also retained steel sale volume guidance of 29.2 MT for FY26E.

"While domestic steel prices have seen some moderation (down ~₹ 1,500/tonne in June'25), declining iron ore and coking coal costs, coupled with higher volumes, are likely to sustain margins, with EBITDA/tonne now projected at ~₹11k/12.5k for FY26E/27E vs. earlier estimate of ~₹13k/13.5k for FY26E/27E," stated ICICI Direct in its report.

JSW Steel Share Recommendation And Target Price

Brokerage Emkay Research has given an 'Add' recommendation for the stock with a target price of Rs 1050 per share. " We revise up our TP by 5% to Rs1,050 (from Rs1,000); however, given the already rich valuations, the upside appears limited as the consensus estimates already reflect a meaningful earnings recovery," noted Emkay Research in its report.

ICICI Direct has given a 'Hold' rating to the stock. "While strategic capacity expansion, robust steel demand tailwinds remain intact, however, limited scope for further improvement in EBITDA/tonne profile, will limit stock upside in our view. We therefore downgrade the stock from BUY to HOLD and value it at ₹1,135 (8.5x EV/EBITDA on FY27E)," stated ICICI Direct in its report.

JSW Steel Q1 Profit

The multinational steel producer's net consolidated profit increased by 158% to Rs 2,184 crore in the June quarter of the financial year 2025-26 from Rs 845 crore reported in the June quarter of previous financial year.

JSWS Steel's earnings per share stood at Rs 8.95, according to the company's June quarterly report released on Friday. Its debt-to-equity ratio increased marginally to 1.15 against 1.06 reported in the year-ago period.

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