Why did CARE Ratings upgrade JSW Steel?

CARE upgraded because JSW Steel completed a slump-sale of Bhushan Power & Steel assets into a JV with JFE Steel, generating about ₹37,350 crore in cash proceeds. The company used the cash to reduce debt, improving its credit profile.

How does this compare to Fitch's upgrade earlier this week?

Both agencies upgraded JSW Steel by one notch — Fitch earlier in the week and CARE on July 7 — citing the same reason: the deleveraging from the JFE JV cash inflow. CARE's action was largely confirmatory and did not introduce new information.

Was this upgrade expected by the market?

Yes, the market had already priced in the improved credit profile after Fitch's upgrade. The CARE action was anticipated and is considered confirmatory rather than a fresh surprise.

What is the planned capacity expansion, and can the company manage it?

JSW Steel has planned a ₹1.26 lakh crore capacity expansion. CARE expects debt to stay comfortable despite the capex, given the cash inflow and debt reduction. However, execution and maintaining debt levels are key uncertainties.

What are JSW Steel's new ratings after this upgrade?

CARE upgraded long-term bank facilities, NCDs, and issuer rating to 'AA+' from 'AA', with a Stable outlook. Short-term and CP ratings remain 'A1+'.

Did the company's fundamentals justify the upgrade?

Yes. The cash inflow from the JV allowed significant deleveraging, improving the financial risk profile. JSW Steel's latest quarterly sales were ₹51,180 crore with net profit of ₹19,413 crore, and trailing ROE is 4.4% with debt/equity of 1.21.

Credit · Steel & Iron Products · Mega cap

JSW Steel gets second rating upgrade in a week, this time from CARE

The one-notch lift to 'AA+' follows the ₹37,350 crore cash inflow from the JFE Steel JV. Market had already priced it in after Fitch's move.

— 3 earlier stories on JSW Steel Ltd. →

JSWSTEEL By Tipsheet Editorial 8 Jul 2026 · 2:21 PM IST Verify on BSE · NSE

Mkt cap₹3.01 lakh cr

P/E13.49×

ROE4.41%

Debt / eq.1.21

Div yld0.58%

₹37,350 cr Cash proceeds from JFE JV that drove the upgrade

What's new

CARE Ratings upgraded JSW Steel's long-term ratings to 'AA+' from 'AA', with Stable outlook.
The upgrade follows the slump-sale transfer of Bhushan Power & Steel assets into a JV with JFE Steel.
The move mirrors Fitch's one-notch upgrade earlier the same week.

Why this matters

The second upgrade in a week confirms the balance-sheet repair, but the market had already moved on that information. The real test, the planned ₹1.26 lakh crore capacity expansion and its impact on debt levels, lies ahead.

What we're watching

Whether the ₹1.26 lakh crore capex plan keeps debt comfortable as CARE expects.
Any further rating actions from other agencies now that two have upgraded.
Execution of the Andhra plant and other expansion milestones.

The full read

JSW Steel has secured its second notch-upgrade in a week, with CARE Ratings lifting long-term ratings to 'AA+' from 'AA', matching Fitch's action. The upgrade is driven by the ₹37,350 crore cash infusion from the JFE Steel joint venture, which allowed the company to slash debt. CARE expects debt to stay comfortable despite a planned ₹1.26 lakh crore capacity expansion. But this is confirmatory news. The market had already priced in the improved credit profile after Fitch's move. The open question is whether the massive capex plan can be executed without stretching the balance sheet again. For now, JSW Steel has two agencies on the same page, and a Stable outlook suggests no near-term risk of reversal.

Questions answered

Why did CARE Ratings upgrade JSW Steel?: CARE upgraded because JSW Steel completed a slump-sale of Bhushan Power & Steel assets into a JV with JFE Steel, generating about ₹37,350 crore in cash proceeds. The company used the cash to reduce debt, improving its credit profile.
How does this compare to Fitch's upgrade earlier this week?: Both agencies upgraded JSW Steel by one notch — Fitch earlier in the week and CARE on July 7 — citing the same reason: the deleveraging from the JFE JV cash inflow. CARE's action was largely confirmatory and did not introduce new information.
Was this upgrade expected by the market?: Yes, the market had already priced in the improved credit profile after Fitch's upgrade. The CARE action was anticipated and is considered confirmatory rather than a fresh surprise.
What is the planned capacity expansion, and can the company manage it?: JSW Steel has planned a ₹1.26 lakh crore capacity expansion. CARE expects debt to stay comfortable despite the capex, given the cash inflow and debt reduction. However, execution and maintaining debt levels are key uncertainties.
What are JSW Steel's new ratings after this upgrade?: CARE upgraded long-term bank facilities, NCDs, and issuer rating to 'AA+' from 'AA', with a Stable outlook. Short-term and CP ratings remain 'A1+'.
Did the company's fundamentals justify the upgrade?: Yes. The cash inflow from the JV allowed significant deleveraging, improving the financial risk profile. JSW Steel's latest quarterly sales were ₹51,180 crore with net profit of ₹19,413 crore, and trailing ROE is 4.4% with debt/equity of 1.21.

Mentioned: CARE Ratings · Fitch Ratings · JFE Steel

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

JSW Steel Ltd.

Steel

₹3.01 L cr

P/E 13.48×

Latest quarter · Mar 2026

Sales₹51,180 cr

Net profit₹19,413 cr

Op. margin+16.9%

EPS₹53.67

Strength & growth

Debt / equity0.95×

Current ratio1.49×

Sales CAGR+15.8%

EPS CAGR+27.5%

Story so far

All notes on JSWSTEEL →

8 Jul 2026 · 2:21 PM IST JSW Steel gets second rating upgrade in a week, this time from CARE
4d ago Fitch lifts JSW Steel rating, opens door to investment grade
7d ago JSW Steel breaks ground on ₹16,350 cr Andhra plant
50d ago JSW Steel's Q4 FY26 transcript confirms known points