JSWSTEEL

’s Bhushan Bet Nears Payoff as JFE Partnership Talks Advance

is in advanced discussions with Japan’s JFE Steel Corporation to sell a 50% stake in Bhushan Power and Steel Ltd, potentially unlocking ₹15,000–16,000 crore. The move aims to pare debt and support JSW’s aggressive capacity expansion plans. - Deal Structure & Strategic Intent: - The proposed transaction would bring JFE in as a joint venture partner in Bhushan Power and Steel, a wholly owned JSW subsidiary. - JSW’s net debt stood at ₹79,153 crore in Q2FY26, with a net debt-to-EBITDA ratio of 2.97x. The deal could help maintain leverage below 3x while funding growth. - Bhushan Power Acquisition Timeline: - JSW’s ₹19,700 crore takeover of Bhushan Power was approved by the Supreme Court in September 2025, ending a prolonged insolvency battle dating back to 2017. - JSW expanded Bhushan’s capacity from 2.3 mtpa to 4.5 mtpa, with plans to add another 0.5 mtpa. - JFE Relationship & Historical Context: - JFE Steel already holds a 15% stake in JSW Steel since 2010 and partnered in JSW JFE Electrical Steel, a JV formed in 2024 to produce grain-oriented electrical steel in Karnataka. - The Bhushan JV would mark their second major collaboration. - Expansion Pipeline: - JSW aims to scale total steel capacity to 50 mtpa by 2030. Current capacity is 34.2 mtpa, with a pipeline to reach 41.9 mtpa by FY28 and 42.9 mtpa by FY29 via an electric arc furnace in Andhra Pradesh. - Market Implications: - Analysts view the stake sale as a strategic deleveraging move amid high capex commitments. - While JSW and JFE declined to comment officially, the deal is expected to close within the current quarter. If finalized, the JV could significantly strengthen JSW’s balance sheet, deepen its global ties, and accelerate its path to 50 mtpa capacity. Investors will watch for formal confirmation and clarity on valuation, governance, and operational synergies