JSW Steel FY26 Annual Earnings Summary

Cheaper imports finding way into India, impacting domestic sentiment and realizations.

Imports have increased recently as steel from other countries diverts to India due to global tariff actions, pressuring domestic prices.

Chinese steel exports surged 14% to 133.5M tons in CY2025, pressuring regional prices. Anti-involution measures may take time to have effect.

Supreme Court review petition pending; status quo ordered. Could impact 0.5 MTPA expansion if unfavorable.

HRC prices moderated by ~INR 1,500/ton in June and further softness in July, partly seasonal but also due to global uncertainties.

New capacities coming on stream in India have led to a discount to import parity, impacting realizations.

INR depreciation led to a INR 2,100 crore increase in net debt due to translation of foreign currency debt.

CBAM regulations could increase costs for exports to Europe (1.2-1.3M tons annually). Management has not yet quantified the impact and is awaiting clarity.

Despite captive mines, 50% of iron ore requirement will be from market. Any supply disruption or price increase could impact costs.

INR 100,000 crore capex over 4-5 years could increase net debt, though BPSL cash inflow provides some cushion.

Management expects coking coal costs to rise by $12-15/ton in Q1 FY27, impacting margins.

Analyst raised concern about gas shortages; management acknowledged limited exposure (5-6% of production) but noted cost impact and potential disruption if conflict escalates.