JSW Steel Share Price Target: Kotak Neo Research Upgrades Stock to BUY, Cites Strong Q1 Show

Shares of JSW Steel Ltd will be in focus after the steelmaker posted a stronger-than-expected performance for the June quarter, The stock was trading at Rs 1,260.00, up Rs 22.70 (+1.83%), as of 1:15 pm IST on July 20.

Q1FY27 Results: Key Numbers

JSW Steel's consolidated adjusted EBITDA came in ahead of estimates for the quarter, driven by higher realizations. India steel margins expanded sharply to Rs 15,110/ton, a jump of 23.3% quarter-on-quarter a key driver of the earnings beat. On a standalone basis too, EBITDA outperformed expectations on the back of improved realizations, with EBITDA/ton rising sequentially as prices firmed up.

The company also made progress on its balance sheet during the quarter. Net debt declined on a sequential basis following the deconsolidation of the BPSL joint venture, which was completed during the period. Net debt/EBITDA is expected to stay comfortably below the company's stated threshold of 3x, according to the brokerage's estimates.

Kotak Neo Research Turns Bullish

Kotak Neo Research upgraded JSW Steel to BUY from its earlier rating, raising its fair value target to Rs 1,450 in a report dated July 20, 2026. The research note pointed to the company's robust expansion pipeline and a string of margin-accretive projects that should keep both earnings and margins on an uptrend over the medium term.

According to the report, volumes had declined during the quarter, and cautioned that seasonal softness stemming from weaker long product prices and elevated coking coal costs could weigh on margins in the September quarter (Q2FY27). However, it expects this to be partly offset by stronger volumes going forward.

On capacity, the company remains on track to scale up to roughly 49 million tonnes per annum by FY30, underpinning the brokerage's constructive medium-term view.

Importantly, the note said growth visibility for the company remains strong, and that the recent correction in the stock has made the risk-reward profile attractive enough to justify the ratings upgrade.

Outlook

With the ratings upgrade to BUY and a revised target price of Rs 1,450 implying meaningful upside from current levels the Kotak’s constructive stance rests on three pillars: an attractive risk-reward following the recent stock correction, a robust capacity expansion pipeline through FY30, and an improving margin trajectory supported by higher-margin projects. Shares of JSW Steel last traded around Rs 1,237.

Also Read - Silverstorm Parks And Resorts To Launch ₹82.43 Crore IPO On 24 July At ₹123-133 Per Share