JSW Steel Q1 Profit More Than Doubles To ₹4,696 Cr, Beats Estimates

JSW Steel reported a more than two-fold rise in consolidated net profit for the June quarter, supported by higher revenue, stronger steel sales and a slower increase in operating expenses. The earnings also surpassed analysts' expectations.

The Mumbai-based steelmaker posted a consolidated net profit of ₹4,696 crore for the quarter ended June 30, compared with ₹2,209 crore in the corresponding period last year.

Revenue from operations increased 9.8% year-on-year to ₹47,364 crore from ₹43,147 crore.

According to Reuters, the company's profit exceeded analysts' average estimate of ₹3,111 crore, based on LSEG data. Shares of JSW Steel rose more than 1% during the day following the results, supported by firmer domestic steel prices and resilient sales volumes.

Steel Output, Sales Increase

Consolidated crude steel production rose 3.3% year-on-year to 6.59 million tonnes, while saleable steel sales increased 3.6% to 6.25 million tonnes.

Domestic sales stood at 5.34 million tonnes, while exports jumped 46% year-on-year to 0.68 million tonnes, accounting for 11% of sales from Indian operations.

During the quarter, JSW Steel also commenced construction of a 2 million tonne per annum steel plant in Andhra Pradesh with an investment of more than ₹16,350 crore.

The company noted that the year-on-year comparison includes Bhushan Power and Steel Limited (BPSL) in the base period. BPSL's steel business was deconsolidated from March 27, 2026, after JSW Steel and Japan's JFE Steel obtained joint control of the business.

Expenses Rise At A Slower Pace; Debt Declines

Total expenses increased 3.7% year-on-year to ₹41,830 crore. The cost of materials consumed rose 18.4% to ₹24,586 crore, while purchases of stock-in-trade increased to ₹1,814 crore from ₹554 crore.

Employee benefit expenses declined 0.9% to ₹1,306 crore, finance costs fell 22.8% to ₹1,712 crore, and depreciation and amortisation expenses declined 15.8% to ₹2,137 crore.

Other expenses fell 7.3% to ₹6,609 crore, while power and fuel costs remained broadly unchanged at ₹4,116 crore.

Basic earnings per share increased to ₹19.05 from ₹8.95, while diluted earnings per share rose to ₹19.02 from ₹8.93.

JSW Steel also strengthened its balance sheet during the quarter. Consolidated net debt declined by ₹7,713 crore from the end of March to ₹46,157 crore as of June 30.

The company's net debt-to-equity ratio improved to 0.42 times from 0.51 times, while the net debt-to-EBITDA ratio fell to 1.46 times from 1.81 times.