JSW Infra showed a weak quarterly performance in the first quarter of FY26. However, Nuvama Institutional Equities still instilled confidence in the stock as it sees 15% upside in the stock. The brokerage expects that the second half could be strong due to several factors.
Nuvama on JSW Infrastructure: Weak quarter but growth likely in H2
JSW Infrastructure retained its FY26 guidance of 10% volume growth as the company believes that the second half is likely to be stronger. The confidence is on the back of a strong project pipeline, ramp-up at terminals, and incremental demand from anchor customers.
The brokerage tweaked estimates by 1–3% and rolled forward to the June 2026 price target of Rs 371, implying an upside of 15%, based on the company’s valuation to its EBITDA of 25x for June 2026. The brokerage maintained its ‘Buy’ rating on the stock.
While group cargo growth was subdued as JSW Steel undertook maintenance shutdown at Dolvi in Q1, third-party cargo continued to rise by 9% YoY. In logistics, revenue grew by 6% sequentially and EBITDA by 18% QoQ.
Nuvama on JSW Infra: FY26 volume growth on track
JSW Infrastructure maintained its volume growth guidance of 10% for FY26 underpinned by commissioning of the Jawaharlal Nehru Port Authority (JNPA) Liquid Terminal by August 2025. Plus, it was aided by the full-scale operations at the Tuticorin terminal, which commenced operations from March 2024. Lastly, continued ramp-up at Paradip, Ennore, and South West Goa driven by robust coal cargo is also adding to the confidence.
Also, volumes at Jaigarh and Dharamta, JSW Infra’s two largest ports, are expected to continue to register modest growth YoY given limited incremental demand from the anchor customer, that is JSW Steel. However, a meaningful upside is likely only after 5 million tonne brownfield expansion at Dolvi.
“Meanwhile, JSWIL reaffirmed its medium-term target of 400mn tonnes in port capacity by FY30E, with key projects such as Mangalore CT, a slurry pipeline and Jaigarh expansion progressing as per plan,” said Nuvama.
JSW Infrastructure stock performance
The share price of JSW Infra has risen by 2.7% in the last five trading sessions. The stock has given a return of almost 5% in the past one month and 14% in the last six months. However, JSW Infra’s stock price has declined by a per cent in the last one year.