JSW Steel Q4FY25: Steady Output, But Realizations Weigh on Performance

JSW Steel (JSTL) closed Q4FY25 with a mixed performance. The headline numbers showed growth, but realizations didn’t quite hit the mark. Nonetheless, the company remains laser-focused on capacity expansion and margin enhancement initiatives.

Key Highlights of Q4FY25

Let’s break down the numbers:

• Consolidated EBITDA: ₹6,380 crore, up 4.1% YoY and 15% QoQ.

• Standalone EBITDA: ₹8,783/ton, up 12.5% YoY and 11.7% QoQ, though it fell short of estimates.

• Net debt reduction: down to ₹76,560 crore in Q4FY25 from ₹80,920 crore in Q3FY25JSW Steel_One_Pager_Q4F….

• Higher domestic prices supported margins, and JSTL expects 8–10% volume growth in FY26 for the domestic steel industry.

Strategic Direction

Management reaffirmed their focus on:

• Capacity expansion projects, aiming for 9% CAGR volume growth over FY25–28E.

• Margin-accretion initiatives to structurally elevate JSTL steel margins in the medium term.

These efforts should support JSTL’s longer-term positioning, even as near-term risks remain balanced.

What’s Pressuring Near-Term Growth?

Despite the EBITDA growth, the lower-than-expected steel realizations weighed on the performance. This was partially offset by lower costs, but margins remain in focus.

The result? JSTL has kept its REDUCE rating, citing a balanced risk-reward at current levels and a stock valuation of 12.6x P/E FY26E EPS JSW Steel_One_Pager_Q4F….

JSW Steel’s Q4FY25 numbers reflect a company that’s growing cautiously. With solid EBITDA gains and a healthy balance sheet, JSTL is positioning itself well for an eventual upturn in the steel cycle. But for now, lower realizations and a muted margin outlook keep the call at REDUCE.

Disclaimer & Full Report

This feature is based on a synopsis of a research report issued by Kotak Securities Limited. For the full story (and disclaimers), make sure to check out the original sources:

• Full Research Report
• Kotak Securities Research Disclaimer
• Research Hub