JSW Steel Q1 Net Profit Jumps 155% to ₹2,209 Crore; Production Up 14% YoY

Sajjan Jindal-led JSW Steel on Friday reported a 155% year-on-year jump in consolidated net profit for the first quarter of the financial year 2025–26 (Q1 FY26), soaring to ₹2,209 crore. The company had posted a net profit of ₹867 crore in Q1 FY25. Consolidated revenue rose marginally year-on-year to ₹43,147 crore, although it was lower on a sequential basis.

JSW Steel produced 7.26 million tonnes of crude steel in Q1 FY26, marking a 14% increase from the same period last year. Capacity utilisation in India stood at 87%, slightly down from 93% in the previous quarter due to planned maintenance, the company said. Steel sales rose 9% YoY to 6.69 million tonnes, with both institutional and retail sales up 12%. Domestic sales increased 12% to 5.96 million tonnes, while exports declined 20% and accounted for just 7% of Indian sales.

The company reported an operating EBITDA of ₹7,576 crore, with a margin of 17.6%. EBITDA grew 37% year-on-year, mainly due to higher volumes and lower coking coal costs. JSW Steel’s net debt stood at ₹79,850 crore as of 30 June 2025, up ₹3,287 crore from March-end, primarily due to higher working capital requirements. Net gearing rose slightly to 0.95x from 0.94x in Q4, while the net debt-to-EBITDA ratio improved to 3.20x from 3.34x.

In its earnings announcement, the company said it plans to spend ₹20,000 crore in capital expenditure during FY26, of which ₹3,400 crore was invested in Q1.

During the quarter, JSW Steel commissioned key facilities at its 5 MTPA Vijayanagar project through its subsidiary JVML, with the second converter at the SMS unit expected to be commissioned in Q2 FY26. Other major projects in progress include a 30 MTPA slurry pipeline in Odisha—now part of JSW Infrastructure—to be commissioned in FY27, and the Dolvi Phase-III expansion, targeted for completion by September 2027.

The company is also expanding its downstream capacity, with new CRM and galvanising projects approved for Khopoli and Vijayanagar, and a 0.55 MTPA CRNO steel facility sanctioned to meet rising domestic demand for electrical steel.

Update on Bhushan Power Case

The Supreme Court, in a judgment dated May 2, rejected JSW Steel’s resolution plan for its subsidiary Bhushan Power & Steel Ltd (BPSL), ordering a refund of payments made to BPSL’s creditors and equity contributions. It also directed the National Company Law Tribunal (NCLT) to initiate liquidation proceedings under Section 33(1) of the Insolvency and Bankruptcy Code. In response, JSW Steel, through its subsidiary Piombino Steel Ltd (PSL), which had invested ₹9,356 crore in BPSL, conducted a recoverability assessment. The company concluded that no provisioning was required, as the amounts remain recoverable under legal and contractual arrangements.

Subsequently, on May 26, the Supreme Court issued an interim order directing status quo on NCLT proceedings until JSW’s review petition is resolved. JSW Steel filed the petition on June 25, and similar petitions were filed by the Committee of Creditors and the Resolution Professional. The company, after consulting legal advisors, believes it has strong grounds to pursue the review and has made no adjustments in its financials pending the outcome.

Despite the legal uncertainties, BPSL continued to perform well operationally in Q1 FY26, with crude steel production of 0.88 million tonnes and sales volume of 0.78 million tonnes. Revenue from operations stood at ₹4,998 crore, and operating EBITDA rose 13% YoY to ₹760 crore, driven by higher volumes and lower coking coal costs. BPSL also posted a profit after tax of ₹331 crore for the quarter.