JSW Steel has been assigned a Foreign Currency Long Term Issuer Rating and Local Currency Long Term Issuer Rating of ‘A-‘ with a Stable Outlook by Japan Credit Rating Agency, Ltd. (JCR). The rating reflects JSW’s strong profitability, efficient production, solid domestic business, and strategic partnerships. The official announcement was made on December 24, 2025.
Positive Rating Outlook
Japan Credit Rating Agency, Ltd. (JCR) has assigned JSW Steel a Foreign Currency Long Term Issuer Rating and a Local Currency Long Term Issuer Rating of ‘A-‘. The outlook for both ratings is Stable, effective as of December 24, 2025. This assessment highlights JSW Steel’s financial standing and operational efficiency.
Key Factors Influencing the Rating
The credit ratings reflect JSW’s strong profitability, backed by efficient production processes, solid domestic business foundation, and favorable domestic business environment with high growth potential. Additional contributing factors include strategic partnerships with overseas players such as JFE, access to international financial markets, and the ability to maintain a sound financial balance despite ongoing capacity expansion investments.
India’s Steel Demand
India’s steel demand has continued to grow by around 10% annually in line with its economic expansion. The Ministry of Steel has been supporting domestic steel manufacturing since 2017 when it announced its National Steel Policy. Measures it takes under the policy include a mandatory use of domestic steel products in government projects valued higher than a specified amount and introduction of production-linked incentives to provide subsidies to qualified specialty steel producers.
Operational Highlights
JSW operates six steel plants and 11 processing facilities across India, enabling its nationwide steel supply. It owns 23 iron ore mines (12 of them currently operational), procuring part of its raw materials internally. Raw material transportation is efficiently managed through pipe conveyor and railways into the steel plants, which underpin the company’s price competitiveness.
Financial Performance
In FY2025, JSW saw a decrease in total income and profits. While both steel production and sales volumes increased and raw material prices were on a downward trend, the fall of sales prices had a significant negative impact on total income and net income. In the first half of FY2026, steel prices remained weak, but domestic sales volumes rose about 14% year-on-year, and an improved plant operating rate and lower raw material costs drove revenue up 6.8% to INR 883.0 billion and net income up 203% to INR 38.6 billion, indicating a recovery in profitability.
Future Outlook
The company is expected to continue massive investment as it aims to expand its production capacity to 51.5 Mtpa by FY2031. JCR expects JSW to continue disciplined financial management.
Source: BSE