JSW Steel Limited has received an upgrade in its credit rating from CARE Ratings Limited. The long-term rating for bank facilities and issuer rating has been upgraded from CARE ‘AA’ Stable to CARE ‘AA+’ Stable. The short-term rating for bank facilities and commercial paper has been reaffirmed at CARE A1+. This upgrade is primarily driven by the significant cash inflow of approximately ₹37,350 crore from the strategic slump sale of Bhushan Power and Steel Limited (BPSL) assets into a joint venture with JFE Steel Corporation. This inflow is largely being utilized for deleveraging. CARE Ratings also noted the consistent improvement in JSW Steel's scale of operations over the past decade, with a significant increase in the contribution of value-added steel products to 61% in FY26 from 30-35% in FY16. The company is well-positioned for its planned capacity expansion. The company's financial risk profile has shown significant improvement, with overall gearing, net debt/PBILDT, and interest coverage metrics strengthening as of March 31, 2026. Despite a significant capex plan of ₹1.26 lakh crore over the next 4-5 years, the company expects to maintain leverage within a comfortable range. The rating strengths are tempered by the inherent cyclicality of the steel industry, forex exposure, and commodity pricing risks. However, the company's strong liquidity position, with cash and liquid investments of ₹41,507 crore as of March 31, 2026, provides comfort.
