JSW Steel forged strong but tested by market heat and capacity shifts

Rising coking coal costs, low steel prices, and export challenges may weigh on JSW Steel's near-term margins, though management expects price recovery ahead

Volumes and operating profit for JSW Steel grew year-on-year (Y-o-Y) in the July–September quarter (Q2) of 2025-26 (FY26), but profitability may face near-term pressures. Revenues rose 5 per cent quarter-on-quarter (Q-o-Q), driven by 10 per cent volume growth as capacities ramped up at Dolvi, Maharashtra; JSW Vijayanagar Metallics (JVML); and JSW Bhushan Power & Steel (BPSL). Net sales realisation, however, fell 4 per cent Q-o-Q due to lower steel prices.

 

Operating profit declined 6 per cent Q-o-Q to ₹7,100 crore, though it grew 31 per cent Y-o-Y. Operating profit per tonne dropped 14 per cent Q-o-Q to ₹9,693 per tonne