JSW Steel Ltd. reported Q4 FY25 earnings that were broadly in line with expectations, according to Morgan Stanley, but concerns over its Bhushan Power & Steel Ltd (BPSL) acquisition continue to weigh on investor sentiment.
Key Financial Highlights:
- Q4 Revenue: ₹44,819 crore (↑8.3% QoQ)
- Consolidated EBITDA: ₹6,378 crore (↑14.3% QoQ)
- Net Profit: ₹1,503 crore (↑109.6% QoQ)
- EBITDA Margin: 14.2% vs 13.5% in Q3
Morgan Stanley’s Analysis & BPSL Overhang
Morgan Stanley maintained its ‘equal-weight’ rating on JSW Steel, noting that while standalone EBITDA was 5% below estimates, consolidated EBITDA exceeded expectations. However, the brokerage highlighted weak performance in overseas subsidiaries, which reported ₹130 crore in EBITDA, significantly below the ₹400 crore estimate.
The BPSL issue remains a key concern, with legal uncertainties persisting despite JSW Steel’s efforts to implement a resolution plan. The company is currently engaged in discussions with legal advisors to determine the next steps.
Market Reaction & Future Outlook
Despite the BPSL overhang, JSW Steel remains optimistic about domestic steel demand, projecting 8–10% growth in FY26 and targeting a 10% volume increase. The company also plans a ₹20,000–₹21,000 crore capex investment to support expansion.
With strong operational performance and strategic growth plans, JSW Steel continues to navigate challenges while reinforcing its market leadership.
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