JSW Steel Reports Q1 Results: Net Profit More Than Doubles

JSW Steel has announced a remarkable surge in its consolidated net profit for the April–June quarter, reporting a figure of Rs 2,209 crore, more than double the Rs 867 crore recorded during the same period last year. This impressive growth is attributed to reduced expenses and increased production volumes. The company also noted a slight rise in total income, which reached Rs 43,497 crore, while total expenses decreased significantly. Additionally, JSW Steel’s operational performance showed a notable increase in crude steel production and sales, although export figures experienced a decline.

Financial Performance Overview

In its latest financial report, JSW Steel revealed a consolidated net profit of Rs 2,209 crore for the first quarter of FY26, a significant increase from Rs 867 crore in the same quarter of FY25. The company’s total income saw a modest rise of 0.9%, reaching Rs 43,497 crore compared to Rs 43,107 crore in the previous year. This growth in profit was primarily driven by a reduction in total expenses, which fell to Rs 40,325 crore from Rs 41,715 crore in the corresponding quarter of the previous fiscal year. The company’s operational efficiency is reflected in its operating EBITDA, which rose by 37% year-on-year to Rs 7,576 crore, resulting in a margin of 17.6%.

Production and Sales Metrics

JSW Steel reported a consolidated crude steel production of 7.26 million tonnes for the quarter, marking a 14% increase year-on-year. The capacity utilization of its Indian operations was recorded at 87%, a decrease from 93% in the previous quarter, attributed to planned maintenance shutdowns. Steel sales also saw a positive trend, rising by 9% year-on-year to 6.69 million tonnes, with both institutional and retail volumes increasing by 12%. Domestic sales contributed significantly, climbing to 5.96 million tonnes, while exports faced a setback, declining by 20% and accounting for only 7% of total sales from Indian operations.

Debt and Operational Insights

As of June 30, 2025, JSW Steel’s net debt stood at Rs 79,850 crore, reflecting an increase of Rs 3,287 crore from the end of March. This rise in debt is attributed to heightened working capital requirements. The company’s Indian operations played a crucial role in its overall performance, with crude steel production reaching 7.02 million tonnes, a 15% increase year-on-year. Steel sales from these operations also rose by 9% to 6.43 million tonnes. Revenue generated from Indian operations amounted to Rs 40,510 crore, while operating EBITDA surged by 38% year-on-year to Rs 7,496 crore, resulting in a margin of 18.5%. The profit after tax from Indian operations reached Rs 2,517 crore, marking a substantial 118% increase compared to the previous year.

Legal Developments

In a separate development, JSW Steel has filed a review petition with the Supreme Court regarding a recent verdict that overturned its resolution plan for Bhushan Steel and Power Ltd (BSPL). The Supreme Court’s ruling, issued on May 2, deemed the plan illegal and in violation of the Insolvency and Bankruptcy Code (IBC). JSW Steel had acquired BSPL through insolvency proceedings in 2019 for approximately Rs 20,000 crore. The Committee of Creditors and the Resolution Professional have also submitted their own review petitions. The Supreme Court has ordered a status quo in the proceedings before the National Company Law Tribunal (NCLT) until the review petition is resolved. JSW Steel expressed confidence in its legal position, stating that it believes it has strong grounds to pursue the review petition.

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