JSW Steel Battles Legal Setback, Stays Bullish on India’s Steel Demand Surge

JSW Steel Ltd is pursuing a Supreme Court review petition after its ₹19,700 crore resolution plan for Bhushan Power & Steel Ltd was nullified in May 2025, citing violations of the Insolvency and Bankruptcy Code. The company, alongside the Committee of Creditors and Resolution Professional, filed separate petitions on June 25, asserting strong legal grounds and maintaining operational control of BPSL.

 

Key highlights:

- The Supreme Court has ordered a status quo on NCLT proceedings until the review is heard.

- JSW claims full compliance in implementing the resolution plan and sees no material impact on FY25 results.

 

Market outlook:

- Despite legal headwinds, JSW Steel expects another year of robust domestic steel demand, fueled by government capex and infrastructure growth.

- Q1 FY26 net profit surged 154% YoY to ₹2,209 crore, with crude steel output up 14% and EBITDA margins at 17.6%.

 

Sources: Business Standard, The Hindu Business Line, Financial Express, The Week, Economic Times Legal, MSN India