JSW Infra share price target cut by JM Financial but FY26 guidance could still be met

Shares of JSW Infrastructure

Ltd. traded lower on Tuesday, April 7, amid concerns linked to the West Asia crisis, even as brokerage firm JM Financial maintained its positive stance on the stock.

JM Financial has retained its ‘Buy’ rating on JSW Infrastructure, while trimming the price target to ₹365 from ₹400 earlier.

The brokerage said the ongoing West Asia conflict has impacted the company’s Fujairah liquid storage facility, which was hit by drone attacks, leading to partial capacity going offline.

It also flagged potential disruptions in steel-grade limestone imports from the region.

Despite these challenges, JM Financial expects JSW Infrastructure to largely meet its FY26 EBITDA guidance of ₹2,600 crore, supported by strong performance in group-linked cargo and continued scale-up in its logistics business.

The brokerage has, however, trimmed its FY27–FY28 estimates to factor in the impact of the geopolitical situation.

On the balance sheet front, a potential primary equity raise to meet minimum public shareholding norms could lead to a near-term supply overhang over the next one to two quarters.

That said, JM Financial expects leverage to remain well below 2.5x (net debt/EBITDA) over FY26–FY28, providing support for the company’s growth capex plans.

Overall, the brokerage continues to view the stock as a combination of growth and value despite near-term headwinds.