JSW Steel Ltd shares in focus today as the firm received a demand notice from the Odisha government amounting to ₹1,472.69 crore. The notice, which was issued on August 21, 2025, pertains to a shortfall in dispatch against the minimum requirement at the Jajang iron ore block located in Keonjhar district.
The notice covers the entire fifth year of the lease period from June 27, 2024, to June 26, 2025.
Previously, JSW Steel had surrendered the Jajang iron ore block due to its uneconomic operations, with mining operations having ceased in December 2024. In response to the demand notice, “the company stated it believes that due legal process has been followed and that it will take appropriate legal remedies against the demand notice in consultation with its legal advisors.”
The shares of JSW Steel saw a decline in trading following the announcement.
On BSE, the stock ended at ₹1,053.95 on Friday, marking a decrease of ₹18.25 or 1.70% from its previous close. Market cap fell of the metal firm fell to Rs 2.57 lakh crore.
The demand notice adds a layer of complexity to JSW Steel’s current business environment. JSW Steel finds itself navigating regulatory challenges while maintaining its financial performance.
This follows the company’s recent disclosure of its first-quarter results for the fiscal year, where it reported a net profit of ₹2,184 crore, a significant increase from ₹845 crore in the same quarter of the previous year. The growth was attributed to a reduction in total expenses and an improvement in operating performance, with the company’s EBITDA reaching ₹7,576 crore, reflecting a 37.5% increase. Despite this, the company’s net debt rose by ₹3,287 crore due to investments in working capital.
Its net debt-to-EBITDA ratio at the end of the June quarter stood at 3.2x, showing slight improvement from 3.34x at the end of March. As the company assesses its legal options, the situation highlights ongoing challenges within the industry, where operational and regulatory hurdles can impact financial trajectories. The broader implications for stakeholders will unfold as JSW Steel progresses with its legal strategies.