JSW Energy Limited has disposed of 2,50,00,000 equity shares in JSW Steel Limited through a bulk deal on May 18, 2026. The shares sold represented 1.02% of the equity share capital of the target company. The disclosure was made under Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Prior to the transaction, JSW Energy held 7,00,38,350 shares, accounting for 2.86% of the paid-up share capital. The sale has reduced the promoter group entity's holding to 4,50,38,350 shares, which constitutes 1.84% of the total equity share capital. The total equity share capital of JSW Steel remains at 2,44,54,53,966 shares of Re.1 each.

Shareholding Details

The following table outlines the changes in shareholding for JSW Energy Limited following the bulk deal transaction:

The transaction was executed on the stock exchanges where JSW Steel is listed, specifically BSE Limited and National Stock Exchange of India Limited. The disclosure confirmed that JSW Energy belongs to the promoter group of JSW Steel. The mode of sale was specifically a market sale through a bulk deal.

JSW Steel has drawn contrasting assessments from four prominent global brokerages — Citi, Goldman Sachs, Morgan Stanley, and Macquarie — each highlighting the company's capacity expansion ambitions, deleveraging trajectory following the BPSL divestment, and the near-term outlook for steel pricing and volumes.

Brokerage Ratings at a Glance

The following table summarizes the four brokerage positions on JSW Steel:

Citi: Sell Rating Maintained with Raised Target Price

Citi has maintained its Sell rating on JSW Steel while raising its target price to ₹1165. The brokerage acknowledges improved leverage following the BPSL divestment and notes additional capacity expansion as a positive development. Citi also points to potential upside in EBITDA per tonne from Q4 levels. However, the brokerage flags that management expects steel pricing to remain range-bound, and that current valuations at 9.3x EV/EBITDA already factor in these positives, limiting further upside from current levels.

Goldman Sachs: Buy Rating with ₹1500 Target Price

Goldman Sachs retains a Buy rating on JSW Steel with a target price of ₹1500, underpinned by the company's aggressive capacity expansion roadmap. The brokerage highlights the following key drivers:

• Capacity expansion targeting 62 MTPA in India and 78 MTPA including joint ventures by FY32
• Strong deleveraging supported by the BPSL divestment, with further debt reduction expected in June 2026
• An estimated 10% India sales volume CAGR through FY30

Goldman Sachs views these structural growth drivers as sufficient to justify its constructive stance on the stock.

Morgan Stanley: Overweight with ₹1330 Target Price

Morgan Stanley maintains an Overweight rating on JSW Steel with a target price of ₹1330, citing strong results, expected margin expansion in Q1FY27, and sharp deleveraging driven by the BPSL slump sale. The brokerage also highlights aggressive capacity expansion guidance targeting 78 MT domestic capacity by FY32 versus 36.4 MT in FY26. Key operational and financial highlights are outlined below:

Morgan Stanley notes the sharp deleveraging achieved following the BPSL transaction and highlights that net debt fell sharply on a quarter-on-quarter basis, even as the company has guided for capex of ₹220–240 billion in FY27.

Macquarie: Outperform with ₹1353 Target Price

Macquarie maintains an Outperform rating on JSW Steel with a target price of ₹1353, citing a strong quarter and a stable balance sheet. The brokerage also points to the company's aggressive capacity expansion plans and expects that India's steel demand outlook, along with potential cost efficiencies and policy-led margin support, will strengthen cash flows and the balance sheet further.

Key Themes Across Brokerages

Despite their divergent ratings, all four brokerages converge on several common themes shaping the JSW Steel investment thesis:

• BPSL Divestment: Recognized across all reports as a catalyst for improved leverage and debt reduction
• Capacity Expansion: Domestic capacity guidance of up to 78 MT by FY32 is a central focus
• Deleveraging: Net debt reduction is highlighted as a near-term positive by Goldman Sachs, Morgan Stanley, and Macquarie
• Steel Pricing Outlook: Management's expectation of range-bound pricing is cited by Citi as a key risk to the bull case
• Margin Outlook: Morgan Stanley expects margin expansion in Q1FY27, while Macquarie points to potential cost efficiencies and policy-led margin support

The divergence in ratings reflects differing views on whether the current valuation adequately captures JSW Steel's growth prospects, with Citi cautioning that positives are already priced in, while Goldman Sachs, Morgan Stanley, and Macquarie see further upside potential.