JSW Steel, India’s top private steelmaker, reported a nearly four-fold increase in second-quarter net profit on Friday, as strong sales volumes offset the impact of lower steel prices.
For the quarter ended 30 September, the Mumbai-based company posted a consolidated net profit of Rs 1,623 crore (USD185 million), up from Rs 439 crore in the same period last year. Sequentially, profit fell around 26 per cent from Rs 2,184 crore recorded in Q1 FY26.
Revenue from operations rose 14 per cent on-year to Rs 45,152 crore, while total expenses increased over 11 per cent to Rs 43,004 crore during the quarter. The company’s adjusted Ebitda reached Rs 7,849 crore, up 39 per cent year-on-year but largely flat compared to the previous quarter. On a per-tonne basis, Ebitda was Rs 10,701, higher by 16 per cent on-year and down 9 per cent sequentially.
JSW Steel’s Ebitda margin expanded to 17.4 per cent from 14.2 per cent a year ago, reflecting robust domestic demand and high capacity utilisation in India, which stood at 92 per cent. Steel sales rose 20 per cent year-on-year to 7.34 million tonnes in Q2 FY26. The increase in sales and incremental steel price gains—supported by measures such as the safeguard duty on certain flat steel products—helped strengthen profitability.
The company also incurred a one-time charge of Rs 342 crore in the same quarter last year related to the surrender of its Jajang iron ore mining lease. Profit before exceptional items and tax grew 107 per cent year-on-year in Q2 FY26.
Strategic Restructuring
JSW Steel’s board approved plans to consolidate all US operations under a single holding company—JSW Steel (Netherlands) BV—subject to regulatory approvals. The restructuring will cover assets in Baytown, Texas, including Plate & Pipe mills, certain coking coal assets in West Virginia, and Ohio steel manufacturing operations under Acero Junction Holdings Inc.
In India, the board sanctioned the merger of wholly owned subsidiaries—Amba River Coke, Monnet Cement, and JSW Retail and Distribution—into JSW Steel. The move aims to streamline operations and realise synergies across the group.
While global growth in 2025 has remained resilient, JSW Steel flagged a cautious outlook for 2026. Geopolitical uncertainty, elevated tariffs, and potential inflationary pressures from trade measures could dampen momentum.
In the US, however, the company noted that robust consumer spending and investment in aluminium-related sectors, coupled with rate cuts by the Federal Reserve, are likely to support growth. |
