Credit Rating

JSWSL: MUM: SEC: SE: 2026-27/07/10 July 08, 2026 1. National Stock Exchange of India Ltd. 2. BSE Limited Exchange Plaza, Plot No. C/1, G Block Corporate Relationship Dept. Bandra – Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E), Mumbai – 400 051 Dalal Street, Mumbai – 400 001. NSE Symbol: JSWSTEEL Scrip Code No.500228 Kind Attn: Listing Department Kind Attn: Listing Department Sub: Intimation under Regulation 30 (6) & 51(2) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (“ SEBI LODR”) : Upgrade in Rating by CARE Ratings Limited (CARE Edge Ratings/CARE) Dear Sir, Pursuant to Regulation 30(6) and 51(2) of the Listing Regulations 2015 as amended, please refer below update on credit rating by CARE Ratings Limited (CARE Edge Ratings/CARE) vide its Press Release dated July 7, 2026: Name of Credit Type of Credit Existing Rating Rating Action/ the Rating Rating Revised Rating Company Agency Long-Term Bank Upgraded to Facilities CARE ‘AA’ Stable CARE ‘AA+’ Stable LT rating Upgraded to Long-Term(LT)/ CARE ‘AA’ Stable/ CARE ‘AA+’ Stable and Short Term(ST) CARE A1+ ST rating re-affirmed at Bank Facilities CARE A1+ CARE JSW Steel Short Term Bank Re-affirmed at Ratings CARE A1+ Limited Facilities CARE A1+ Limited Upgraded to Issuer Rating CARE ‘AA’ Stable CARE ‘AA+’ Stable Non- Convertible Upgraded to CARE ‘AA’ Stable Debentures CARE ‘AA+’ Stable Re-affirmed at Commercial Paper CARE A1+ CARE A1+ Further as per Regulation 55 of SEBI LODR read with SEBI Master Circular SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/0000000103 dated July 11, 2025 as amended, please find below the details of the upgraded credit rating by CARE Ratings Limited in respect of the Non-Convertible Debentures issued by the Company: Sl. ISIN Name Credit Outlook Rating Other Date of the Rating (Stable/ Action rating of Credit assigned Positive/ (New/ action credit Rating Negative/ Upgrade/ rating Agency No Downgrade/ Outlook) ReAffirm/ Other) 1 INE019A07415 CARE CARE 2 INE019A07423 Ratings ‘AA+’ Stable Upgrade NA July 7, 3 INE019A07449 Limited Stable 2026 A copy of the Press Release issued by CARE Ratings Limited covering the rationale for rating action is enclosed herewith. This is for your information and records. Yours faithfully, For JSW STEEL LIMITED Manoj Prasad Singh Company Secretary (In the Interim Capacity) Enclosed: as above Press Release JSW Steel Limited July 07, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action 21,338.96 Long Term Bank Facilities (Reduced from CARE AA+; Stable Upgraded from CARE AA; Stable 35,502.00) 14,177.34 Long Term / Short Term Bank CARE AA+; Stable / LT rating upgraded from CARE AA; Stable (Enhanced from Facilities CARE A1+ and ST rating reaffirmed 13,061.00) 33,658.66 Short Term Bank Facilities (Enhanced from CARE A1+ Reaffirmed 33,611.00) Issuer rating Issuer Rating 0.00 CARE AA+; Stable Upgraded from CARE AA; Stable Non Convertible Debentures 4,000.00 CARE AA+; Stable Upgraded from CARE AA; Stable Non Convertible Debentures 4,000.00 CARE AA+; Stable Upgraded from CARE AA; Stable Non Convertible Debentures - - Withdrawn Commercial Paper 2,500.00 CARE A1+ Reaffirmed Commercial Paper 2,500.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with the names of respective FSRs has been disclosed under Annexure-7. Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) notes the completion of strategic slump-sale transfer of Bhushan Power and Steel Limited (BPSL) assets (steel business of BPSL) into a 50:50 Joint Venture (JV) with Japan based JFE Steel Corporation JFE). As part of this transaction, JSW Steel Limited (JSWSL or the Company) has received cash proceeds amounting to around ₹37,350 crores. The upgrade of the ratings assigned to the bank facilities and instruments of JSWSL considers the significant cash inflow emanating from the above-said transaction, which has been/will be largely utilized towards deleveraging. CareEdge Ratings further expects sustenance of the existing leverage levels despite an announced large-scale capacity expansion plan cumulating to around ₹1.26 lakh crores. The rating further draws significant comfort from consistent improvement in scale of operations (~2x) over the past decade, achieved alongside, with significant revenue contribution of value-added steel products (61% in FY26 vs 30-35% in FY16). While JSWSL has already been a distinct market leader in the Indian steel industry, the company is also well-positioned to deliver the planned capacity expansion over the next few years, thereby further consolidating its leadership position. The company has made healthy reinvestments (~80%) of the cash flow generated from operations, being re-invested across new capacity additions (both upstream and downstream) and to ensure raw material security. Furthermore, as stated by the company management, prudent capital allocation would be maintained by the company during potential adverse industry cycles if any (particularly during elevated capex phase). Additionally, the company is also expected to maintain comfortable liquidity headroom, to navigate such downturns effectively. On consolidated basis, while BPSL (subsidiary of JSWSL) contributed around 12% and 10% of JSWSL (consolidated) volumes and profit before interest, lease rentals, depreciation and tax (PBILDT) respectively, the slump sale transfer (dated Mar 27, 2026) of these assets under newly formed joint-venture with JFE has not materially altered the scale of operations as evident from 28.6 MT FY27 guidance vs 29.6 MT sales volumes in FY26 for JSWSL (consolidated). This is due to restart of 4.5 MTPA blast furnace (BF) at Vijayanagar works (BF capacity expanded from 3 MTPA to 4.5 MTPA during maintenance shutdown between September 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release 2025 and June 2026), expected amalgamation of 0.9 MTPA of BMM Ispat Limited (BMM) long products facility (subject to merger before March 31, 2027) and balance to be achieved via increase in capacity utilisation for JSW Vijayanagar Metallics Limited (JVML) facility in FY27 (vs FY26). On the industry front, the domestic market maintained healthy volume demand in FY26, however subdued global steel prices since FY25, including FY27-YTD due to challenges in China (largest exporter of steel) continues to result in low-cost flat steel dumping in the international markets. The imposition of safeguard duty in India (currently at 11.5% and valid until April 2028) has partially mitigated this pressure by curbing the influx of cheap imports from China, as well from those countries with which India has Free Trade Agreements. On a consolidated basis, the sales volume improved from 26.45 MT in FY25 to 29.58 MT for FY26. The blended net sales realisations (NSR) stood at ₹61,541/tonne in FY26 (vs ₹62,977/tonne), alongside improvement in PBILDT to ₹10,081/tonne in FY26 (vs Rs.8,683/tonne in FY25). CareEdge Ratings notes that while there has been rise in the landed coking coal prices and overall cost of production during Q1FY27, the same is expected to be largely offset by price hikes during Q1FY27 (as compared to Q4FY26). The absolute PBILDT are expected to improve over FY27 (vs FY26) basis improvement in PBILDT/tonne for both domestic and overseas operations. CareEdge Ratings expects domestic steel consumption is likely to increase at a CAGR of around 7-8% during the next 2-3 years, which should support healthy capacity utilisation and facilitate absorption of the incremental capacities. For the overseas US operations, the same is also likely to improve further in FY27, supported by better steel price realisations and stronger demand in the steel pipe segment (used primarily in natural g [Showing first 8,000 characters — download PDF for full document]