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View Promises →JSW Steel Limited — Q2 FY26
JSW Steel reported a strong Q2 FY26 with consolidated revenue of INR 45,152 crore and adjusted EBITDA of INR 7,849 crore (17.4% margin).
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JSW Steel reported a strong Q2 FY26 with consolidated revenue of INR 45,152 crore and adjusted EBITDA of INR 7,849 crore (17.4% margin). PAT surged to INR 1,646 crore from INR 404 crore a year ago. The quarter saw record consolidated crude steel production of 7.9 million tons (+17% YoY) and sales of 7.34 million tons (+20% YoY), driven by ramp-up of JVML and BPSL expansions. Domestic sales grew 14% YoY, outpacing India's steel demand growth of 8.9%. Management expects H2 demand to be seasonally stronger with improving steel prices, supported by GST cuts and potential RBI rate cuts. Key risks include elevated imports due to global trade diversion and lumpy capacity additions pressuring realizations. The company maintains its annual CapEx guidance of ~INR 20,000 crore and targets net debt-to-EBITDA below 3x.
जेएसडब्ल्यू स्टील ने दूसरी तिमाही में 45,152 करोड़ रुपये की कमाई और 7,849 करोड़ रुपये का मुनाफा (17.4% मार्जिन) दर्ज किया। कंपनी का शुद्ध लाभ 404 करोड़ से बढ़कर 1,646 करोड़ रुपये हो गया। इस तिमाही में रिकॉर्ड 7.9 मिलियन टन स्टील बनाया गया (पिछले साल से 17% ज्यादा) और 7.34 मिलियन टन बिक्री हुई (20% ज्यादा)। भारत में बिक्री 14% बढ़ी, जो देश की मांग (8.9%) से ज्यादा है। कंपनी को उम्मीद है कि सरकारी छूट और ब्याज दरों में कटौती से दूसरी छमाही में मांग और बढ़ेगी। लेकिन विदेशी स्टील के आयात और नई फैक्ट्रियों से कीमतों पर दबाव रहेगा। कंपनी 20,000 करोड़ रुपये का निवेश करेगी और कर्ज को मुनाफे के तीन गुना से कम रखेगी।
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Elevated imports due to global trade diversion
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Consolidated crude steel production
7.9M tons
+17% YoY
Highest ever quarterly production, driven by ramp-up of JVML and BPSL expansions.
Consolidated steel sales
7.34M tons
+20% YoY
Highest Q2 sales ever, supported by healthy domestic demand despite monsoon.
Value-added & special products share
64%
+20% YoY
VSP sales were highest ever at 4.31M tons, constituting 64% of total sales.
JSW One GMV
INR 3,950 Cr
+43% YoY
Digital marketplace GMV grew strongly, with INR 1,100 Cr from credit offerings.
What Changed vs Last Quarter
NEW
Steel prices expected to improve in November-December
Management expects steel prices to rise in Q3 as channel inventories are low and demand picks up seasonally.
NEW
Iron ore prices expected to decline in Q3
Management expects iron ore prices to decline in Q3, which would be positive for costs.
NEW
Annual CapEx of ~INR 20,000 crore per year
Total CapEx of INR 69,000 crore over next 3.5 years, with ~INR 20,000 crore per year funded through internal accruals.
UPDATED
Coking coal cost increase of INR 3-5 in Q3
Coking coal costs are expected to rise by INR 3-5 per ton in October-December due to PLV changes.
DROPPED
Q2 volumes expected to increase sequentially
Management expects higher volumes in Q2 as shutdowns are behind and JVML second converter starts.
DROPPED
Dolvi Phase III expansion on track for Sep 2027
Dolvi expansion from 10 to 15 MTPA progressing well, on schedule for completion by September 2027.
DROPPED
India steel demand growth 8.5%-9.5% for FY26
CRISIL forecast of demand growth in the range of 8.5%-9.5% for the financial year, supported by government capex and monetary easing.
NEW RISK
Elevated imports due to global trade diversion
Imports have increased recently as steel from other countries diverts to India due to global tariff actions, pressuring domestic prices.
NEW RISK
Lumpy capacity additions pressuring realizations
New capacities coming on stream in India have led to a discount to import parity, impacting realizations.
NEW RISK
CBAM implementation uncertainty
European CBAM rules are still awaited; while exposure is small, it could affect export strategy and trade flows.
NEW RISK
Forex translation impact on debt
INR depreciation led to a INR 2,100 crore increase in net debt due to translation of foreign currency debt.
RISK GONE
Low-priced imports from Russia and China
Cheaper imports finding way into India, impacting domestic sentiment and realizations.
RISK GONE
BPSL legal uncertainty
Supreme Court review petition pending; status quo ordered. Could impact 0.5 MTPA expansion if unfavorable.
RISK GONE
Steel price moderation in Q2
HRC prices moderated by ~INR 1,500/ton in June and further softness in July, partly seasonal but also due to global uncertainties.
RISK GONE
Cash tax rate volatility
Analyst noted cash tax rate spiked to 34% in FY25 vs 17% average; management did not provide clear explanation, deferring to offline discussion.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25, Q4 FY25
Consolidated crude steel production expected at 30.5 million tons, implying ~10% growth over FY25.
Mentioned in Q1 FY25, Q2 FY25, Q4 FY25
Countries like Vietnam, Japan, and Korea with FTAs continue to pose import risks despite safeguard duties; management noted vigilance.
Mentioned in Q1 FY25, Q2 FY25
Reduction due to slurry pipeline transfer to JSW Infrastructure and BF3 shutdown deferral to FY26.
Mentioned in Q3 FY25, Q4 FY25
Captive iron ore usage fell to 32% in Q4 due to Jajang mine surrender and new capacity; guided 40% for FY26, but execution risk remains.
Mentioned in Q2 FY25, Q3 FY25
NMDC's iron ore price reduction of about ₹350 per ton in January will reflect in consumption costs in February and March.
Fast read
Guidance and risk preview
Management expects steel prices to rise in Q3 as channel inventories are low and demand picks up seasonally.
Imports have increased recently as steel from other countries diverts to India due to global tariff actions, pressuring domestic prices.
View Risks →