Credit Rating

JSWSL: SECT: MUM: SE: 2026­27/07/22 July 27, 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 : Moody’s Rating upgrades JSW Steel to Investment grade with Baa3 issuer rating; outlook stable. Dear Sirs, Pursuant to Regulation 30(6) and 51(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR”), as amended, we wish to inform you that Moody’s Ratings, vide its Release dated July 27 2026 (IST), has upgraded JSW Steel Limited (“JSWSL”) credit rating to Investment Grade with Baa3 issuer rating; stable outlook i.e. at the same level as India’s sovereign rating. Please find below the details of the rating action. Rating Action/ Name of the Credit Rating Type of Credit Existing Revised Company Agency Rating Rating Rating Corporate Assigned Issuer Rating / Family Rating Issuer Rating Corporate Family ‘Ba1’ ‘Baa3’ Rating Positive Stable Outlook JSW Steel Upgraded to Senior Unsecured ‘Ba1’ Limited ‘Baa3’ rating Positive Stable Outlook Upgraded to Senior Unsecured ‘Ba1’ Moody’s ‘Baa3’ bonds rating Positive Ratings Stable Outlook Senior Unsecured revenue bonds issued by Jefferson Upgraded to Jefferson County ‘Ba1’ County Port ‘Baa3’ Port Authority & Positive Authority Stable Outlook Guaranteed by JSW Steel Ltd. rating A copy of the release issued by Moody’s covering the rationale for the rating action is enclosed herewith. The above disclosure will also be made available on the Company’s website at www.jsw.in pursuant to Regulation 30(8) of the SEBI LODR. 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 cc: Singapore Exchange Securities Trading Limited 11 North Buona Vista Drive, #06­07, The Metropolis Tower 2, Singapore 138589 Rating Action: Moody's Ratings upgrades JSW Steel to investment grade with Baa3 issuer rating; outlook stable 27 Jul 2026 Singapore, July 27, 2026 -- Moody's Ratings (Moody's) has assigned Baa3 long-term issuer ratings to JSW Steel Limited (JSW Steel) and changed the outlook to stable from positive. At the same time, we upgraded JSW Steel's senior unsecured ratings and the guaranteed senior unsecured revenue bonds issued by Jefferson County Port Authority to Baa3 from Ba1; and withdrawn JSW Steel's Ba1 corporate family rating. The Baa3-rated notes at Jefferson County Port Authority are guaranteed by JSW Steel. "The upgrade reflects sustained improvement in JSW Steel's credit profile through its position as India's largest steel producer with cost-competitive operations that are spread across multiple locations in India. Further, material debt reduction following its recent asset divestment is also supportive of the upgrade. We expect the company to balance its growth ambitions with financial discipline and to maintain credit metrics and financial policies consistent with an investment grade rating. JSW Steel is also well placed to capture the sustained growth in India's steel demand," says Hui Ting Sim, a Moody's Ratings Vice President. RATINGS RATIONALE JSW Steel's financial profile improved significantly following the sale of a 50% stake in Bhushan Power & Steel Limited (BPSL), which generated around INR373.5 billion ($3.9 billion) of gross proceeds that supported material debt reduction. Leverage, as measured by debt/EBITDA, will improve to 2.0x-2.5x over the next 12-18 months from 3.4x in its fiscal year ending March 2026 (fiscal 2025-26) and remain consistent with an investment-grade rating despite the company's sizeable growth investments. The company's net debt/EBITDA was at 2.0x in fiscal 2025-26. The rating is also supported by JSW Steel's strong business profile as India's largest steel producer, with cost-competitive operations and exposure to favorable long-term growth in India's steel market. The company had crude steel capacity of 31.9 million tonnes per annum (mtpa) as of 31 March 2026 across Karnataka, Maharashtra, Tamil Nadu and Chhattisgarh. India is the world's second-largest steel market, and we expect domestic steel demand to grow at a 5%-7% compound annual growth rate through 2030, supported by infrastructure spending, construction activity and expanding industrial production. The company benefits from a competitive cost position supported by its scale and strategically located assets. Its largest facility at Vijayanagar is located close to key iron ore mining regions in Karnataka, reducing raw material transportation costs and supporting supply security. Capacity additions at other locations have also reduced reliance on a single facility and improved diversification of its steelmaking footprint. Over the past two years, JSW Steel expanded capacity by around 25% through a 1.5 mtpa debottlenecking project and the commissioning of a new 5 mtpa brownfield plant at Vijayanagar. A further 5 mtpa expansion at Dolvi is scheduled for commissioning in fiscal 2027-28. JSW Steel also pursues growth through strategic partnerships. Including joint ventures, steelmaking capacity in India was 36.4 mtpa as of 31 March 2026. In March 2026, the company divested BPSL's steel business to a 50:50 joint venture with JFE Holdings, Inc (Baa3 stable), generating proceeds for debt reduction. Separately, it plans to establish a 50:50 joint venture with POSCO (Baa1 negative) to develop a 6 mtpa integrated steel plant in Odisha. These partnerships support risk-sharing for growth projects and provides access to technical expertise. However, they also increase organizational complexity and reduce control over a growing portion of future capacity because major investment and operating decisions require partner alignment. We assess these joint ventures qualitatively rather than through proportionate consolidation because we expect them to be largely self-funding and because the partners have credit quality comparable to or stronger than JSW Steel. The deconsolidation of BPSL, which historically contributed around 10% of JSW Steel's EBITDA, will weigh on near-term earnings. However, we expect this impact to be more than offset by margin expansion and higher sales volumes at Vijayanagar and Dolvi over the next three years. We estimate JSW Steel's EBITDA will increase to INR330-INR350 billion over the next 12-18 months from around INR295 billion in fiscal 2025-26. Our forecasts assume EBITDA per tonne of around INR10,500, broadly in line with the company's eight- year historical average. We expect margins to improve in fiscal 2026-27, supported by a strong first quarter in which EBITDA per tonne slightly exceeded INR15,000. Our forecasts do not incorporate any material impact from the Supreme Court's rulings on the right of states to levy taxes for mining activities in India as the financial implications remain uncertain. JSW Steel plans to invest around INR1.3 trillion ($13 billion) over the next four to five years to support committed growth projects, including the addition of 16 mtpa of steelmaking capacity by fiscal 2029-30, further upstream integration and downstream expansion. The budget currently excludes any potential equity contributions to joint ventures. Our forecasts assume capital spending of around INR230 billion in fiscal 2026-27 and INR300 billion in fiscal 2027-28, resulting in negative free cash flow over the next two years. Nonetheless, we expect debt to decline to INR700-INR800 billion over the next 12-18 months as divestment proceeds from the BPSL transaction are used to repay borrowings. Thereafter, debt will likely increase moderately as the company executes its capital spending program and potentially makes equity investments in its joint ventures. [Showing first 8,000 characters — download PDF for full document]