JSW Steel Q1 results: Profit up over 2x on volumes, low coking coal cost

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JSW Steel on Friday reported a 158 per cent year-on-year (Y-o-Y) jump in consolidated net profit (attributable to owners of the company) to ₹2,184 crore in Q1FY26. This was on the back of higher volumes and lower coking coal cost, a key raw material. In the year-ago period, the company’s net profit stood at ₹845 crore. 

 

The net profit topped Bloomberg's estimate of ₹2,095 crore.

 

The firm’s total revenue, on a consolidated basis, increased 0.5 per cent to ₹43,147 crore from ₹42,943 crore last year. The Bloomberg estimate for revenue was ₹43,004 crore.

 

Sequentially, revenue was down 3.7 per cent on planned maintenance shutdowns while net profit was up 45.3 per cent. Capacity utilization at the Indian operations was 87 per cent during the quarter compared to 93 per cent in Q4FY25.

 

Consolidated crude steel production stood at 7.26 million tonnes (mt) during the quarter and was higher by 14 per cent Y-o-Y. Steel sales for the quarter stood at 6.69 mt, higher by 9 per cent on the back of higher domestic sales. Domestic sales at 5.96 mt increased 12 per cent Y-o-Y.

 

However, exports continued to be muted with a 20 per cent Y-o-Y drop. It constituted 7 per cent of sales from the Indian operations for Q1FY26.

 

JSW Steel has outlined a capex of ₹20,000 crore for FY26. The consolidated capex spend during Q1FY26 was ₹3,400 crore. 

 

The company’s net debt as of June 30, stood at ₹79,850 crore. The company said that the increase was mainly due to investment in working capital.

 

In its statement, the company said that the growth outlook for the Indian economy continued to be robust despite global uncertainties. “Domestic steel demand continues to be good, aided by healthy capex by the government in Q1,” it said.

 

However, it added, while finished steel imports have moderated, exports have fallen as well, and India continues to be a net importer. “Low-priced imports remain a concern, accentuated by changes in global trade flows due to rising tariff uncertainties,” the company said.

 

The JSW Steel board on Friday also approved the acquisition of 100 per cent equity interest in Saffron Resources Private Limited. The company has 887 acres of land in Odisha.

 

The board also approved entering a share purchase option agreement to acquire additional stake of up to 24.9 per cent in JSW Severfield Structures from existing joint venture partners Severfield. The cost of acquisition of additional stake of up to 24.9 per cent would be up to a maximum value of ₹235.1 crore.

 

The company also said that the board had approved incorporation of a joint venture company between JSW Steel and Andhra Pradesh Mineral Development Corporation to set up the Konijedu Marlapadu integrated iron ore project in Andhra Pradesh to mine and beneficiate low-grade iron ore. The project will be set up at a cost of ₹1,075 crore.