JSW Steel Q3FY26 results: Net profit surges 198.3% to ₹2,139 crore

JSW Steel's Q3FY26 net profit jumped nearly three-fold to ₹2,139 crore, driven by a one-time tax gain from the Bhushan Power-JFE Steel joint venture

JSW Steel on Friday reported a 198.3 per cent year-on-year (Y-o-Y) jump in consolidated net profit (attributable to owners of the company) to ₹2,139 crore in the third quarter of 2025-26 (Q3FY26). It was led by a one-time tax gain linked to the Bhushan Power & Steel (BPSL) and JFE Steel deal.

 

In the year-ago period, the company’s net profit stood at ₹717 crore.

 

On December 3, JSW Steel announced a strategic joint venture with Japan’s JFE Steel for the BPSL steel business.

 

As part of this transaction, JFE will take a 50 per cent stake in BPSL’s steel business at an equity value of ₹31,500 crore and enterprise value of ₹53,000 crore.

 

While announcing the results on Friday, the company said profit after tax (PAT) recognised deferred tax assets (net) amounting to ₹1,439 crore on the brought-forward unabsorbed depreciation in BPSL. It is probable that carried forward unabsorbed depreciation will be recovered against the likely capital gains on the slump sale of BPSL's steel business undertaking.  

 

The company also recognised a one-time exceptional charge of ₹529 crore at a consolidated level towards the impact of increased employee benefits arising from the implementation of the Labour Codes.

 

The firm’s total revenue, on a consolidated basis, increased 11.1 per cent to ₹45,991 crore from ₹41,378 crore last year.

 

Both revenue and net profit surpassed Bloomberg consensus estimates for revenue at ₹44,514.6 crore and net profit at ₹1,457.3 crore.

 

Sequentially, revenue was up 1.9 per cent and net profit rose by 31.8 per cent.

 

The company’s consolidated adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) at ₹6,620 crore increased 22 per cent Y-o-Y. It was driven primarily by higher volumes and lower coking coal and power costs, partly offset by lower realisations.

 

The company said the adjusted Ebitda excludes unrealised forex gains and losses on long-term borrowings, net of unrealised forex gains and losses on intercompany receivables.

 

Reported Ebitda was Rs 6,496 crores during the quarter.

 

The company’s consolidated crude steel production for Q3FY26 was 7.48 million tonnes (mt), up 6 per cent Y-o-Y, driven by the ramp-up of JSW Vijayanagar Metallics Limited (JVML). 

 

However, production fell 5 per cent quarter-on-quarter (Q-o-Q) due to the shutdown of blast furnace-3 (BF-3) at Vijayanagar from the end of September 2025 for upgradation of capacity, the company said.

 

Consolidated sales were highest ever at 7.64 mt, up 14 per cent Y-o-Y on the back of domestic demand.

 

Exports at 0.84 mt increased 53 per cent Y-o-Y, contributing 11 per cent to sales from Indian operations during Q3.

 

JSW Steel said the board has approved a 5 million tonnes per annum (mtpa) steel plant at its new site in Jagatsinghpur, Odisha. 

 

The project under its subsidiary, JSW Utkal Steel Ltd, will entail a capex of ₹31,600 crore and be commissioned by FY30. This is the first phase with expansion potential up to 13.2 mtpa at the site, the company said.

 

JSW Steel expects a capex spend of ₹15,000-16,000 crore during FY26. The company’s consolidated capex spend during Q3 FY26 was ₹3,482 crore, and ₹10,018 crore during 9M FY26.

 

The company’s net debt as of December 31, 2025, stood at ₹80,347 crore.

 

In a regulatory filing, JSW Steel said that the board approved the formation of a joint venture company in which Peddar Realty Limited, wholly-owned subsidiary of the company, would hold 51 per cent stake along with JSW Realty Private Limited (JSWRPL) and other partners for a land development project.

 

The joint venture company would participate in bidding for acquisition of certain identified land parcel in Mumbai. It would be through a formal tender process for development of office and commercial space, among others. The company, being in expansion phase, would require additional commercial/ office space to meet its future captive requirement, JSW Steel said.