Credit Rating

JSWSL: MUM: SEC: SE: 2026-27/07/09 July 06, 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) and 51(2) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,(“Listing Regulations 2015”) : Upgrade in credit rating by Fitch Ratings Dear Sir, Pursuant to Regulation 30(6) and 51(2) of the Listing Regulations 2015, as amended, we wish to inform you that Fitch Ratings, vide its Release dated July 6 2026 (IST), has upgraded the credit rating of JSW Steel Limited (“JSWSL”). Please find below the details of the rating action. Name of the Credit Rating Type of Credit Existing Rating Action/ Company Agency Rating Rating Revised Rating Long-Term Issuer ‘BB’ Upgraded to Default Rating Rating Watch ‘BB+’ JSW Steel (IDR) Positive Positive Outlook Fitch Ratings Limited ‘BB’ Upgraded to Senior Unsecured Rating Watch ‘BB+’ bonds Positive Positive Outlook A copy of the release issued by Fitch Ratings covering the rationale for the 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 7/6/26, 8:18 AM Fitch Upgrades JSW Steel to 'BB+'; off Rating Watch Positive; Outlook Positive  Sign In | Register RATING ACTION COMMENTARY Fitch Upgrades JSW Steel to 'BB+'; off Rating Watch Positive; Outlook Positive Sun 05 Jul, 2026 - 10:43 PM ET Fitch Ratings - Singapore - 05 Jul 2026: Fitch Ratings has upgraded India-based JSW Steel Limited's (JSWS) Long-Term Issuer Default Rating (IDR) and the rating on JSWS's outstanding bonds to 'BB+', from 'BB'. All ratings have been removed from Rating Watch Positive (RWP). The Outlook is Positive. The RWP resolution follows the receipt of proceeds from selling steel assets to a 100% subsidiary of JSW JFE Kalinga Steel Limited (JJKSL), JSWS's newly formed 50:50 joint venture (JV) with Japan-based JFE Steel Corporation. JSWS received INR294 billion in March 2026 and INR79 billion in June 2026. The upgrade reflects our expectation that EBITDA net leverage, including proportionate consolidation of JJKSL, will remain below our previous positive rating sensitivity of 2.7x. The Positive Outlook reflects our view that leverage could improve further to around 2.0x on a sustained basis. A fall in leverage below 2.0x could drive a rating upgrade to 'BBB-'. The ratings remain underpinned by JSWS's strong business profile, given its leading market position in India, low-cost operations and a majority share of value-added and special products in sales. These strengths are partly offset by the cyclical nature of the steel industry and JSWS's high capex intensity. KEY RATING DRIVERS Better Financial Structure and Discipline: We expect EBITDA net leverage to fall to around 2.0x from the financial year ending March 2027 (FY27), from 2.5x in FY26 and 4.0x in FY25. This will be aided by rising EBITDA, cost efficiencies and debt reduction using the cash proceeds from the JJKSL asset sale. This is notwithstanding our view that capex will stay high and free cash flow (FCF) negative over the period. Leverage https://www.fitchratings.com/research/corporate-finance/fitch-upgrades-jsw-steel-to-bb-off-rating-watch-positive-outlook-positive-05-07-2026 1/12 7/6/26, 8:18 AM Fitch Upgrades JSW Steel to 'BB+'; off Rating Watch Positive; Outlook Positive improvement could be faster if the cost-saving initiatives widen margins by more than we expect. We believe JSWS's financial discipline has improved, as evidenced by accelerated deleveraging and lower public net debt/EBITDA and net debt/equity targets. We proportionately consolidate JJKSL's financial statements in our forecasts, as we expect JSWS and JFE to proportionally support JJKSL if needed, given the strategic nature of its assets. JJKSL's current debt is without recourse to its JV partners, and we continue to monitor the terms of any future debt at the JV. Rising Steel Profitability: We forecast JSWS's standalone EBITDA/tonne to reach INR10,750 in FY27 and INR11,250 in FY28 (FY26E: around INR9,700/tonne), with prices rising faster than costs. Prices should be supported by the 11%-12% definitive safeguard duties India imposed on certain steel imports until April 2028, strong domestic demand and improving industry conditions. This, along with easing iron ore prices, should offset cost pressure from the second-order impact of the Iran war. Robust Volume Growth: We forecast sales volume will rise by around 8% on average over FY28-FY30 (FY26E: 4%). Growth will be driven by the ramp-up of the 5 million tonnes per annum (mtpa) brownfield expansion at Dolvi, debottlenecking across several capacities and the contribution from BMM Ispat Ltd after its FY26 merger with JSWS. We expect India's steel consumption to expand by about 8% over the next few years on strong demand from the infrastructure, construction and manufacturing sectors. Capex to Accelerate: We have raised our capex forecast to INR230 billion-275 billion over FY27-FY29, from INR210 billion-225 billion earlier. This follows JSWS revising up its target for crude steelmaking capacity (excluding JVs) to 50.3mtpa by FY30, from 44.4mtpa earlier (FY26: 33.4mtpa). Capex covers capacity expansion at JSWS's brownfield (Dolvi and Vijayanagar) and greenfield (Utkal and Kadapa) plants alongside spend on mining infrastructure, value-added product facilities and overseas operations. JSWS has a reasonable record of capex flexibility in periods of weak industry conditions. Higher JV Investments Manageable: We forecast JSWS's planned equity investment in JJKSL and JV with POSCO that it announced in April 2026 at INR21 billion a year over FY28-FY31, with little impact on JSWS' credit metrics. JSWS expects its two JVs to add 11.5mtpa of crude steel capacity by FY32, but project scope, cost and funding structure are pending board formation and approval. We do not proportionately consolidate POSCO JV financials in JSWS, as it has no existing operations that may need support. Improving Raw-Material Security: Rising output from JSWS's domestic and overseas assets should boost its coking coal and iron ore self-sufficiency over the next few years. https://www.fitchratings.com/research/corporate-finance/fitch-upgrades-jsw-steel-to-bb-off-rating-watch-positive-outlook-positive-05-07-2026 2/12 7/6/26, 8:18 AM Fitch Upgrades JSW Steel to 'BB+'; off Rating Watch Positive; Outlook Positive This will add to supply certainty and lower logistics costs, although production cost may not always be lower given high state royalties. JSWS's iron ore mines supplied 33% of its requirements in FY26 and its coking coal mines a mid-to-high single-digit percentage; JSWS expects to increase both to 50% by FY31. Cost-Efficient Operations: JSWS's Indian operations are highly efficient. Its largest plant at Vijayanagar ranks in the first quartile of WoodMac's 2026 global crude steel site cost curve. This places JSWS's weighted-average cost in the first half of the curve, despite fourth-quartile costs at its overseas units. Continued investment in cost-saving measures, such as wider use of renewable energy and better transport links, should further sharpen its cost position. PEER ANALYSIS JSWS can be compared with global peers Vallourec SA (BBB-/Stable), United States Steel Corporation (U.S. Steel, BBB-/Stable, Standalone Credit Profile (SCP): bb) and Gerdau S.A. (BBB/Positive). Vallourec's ratings reflect a strong position in the seamless tube market and its integrated operations. However, it has a weaker business profile than JSWS due to its smaller scale and weaker cost position. It also [Showing first 8,000 characters — download PDF for full document]