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View Promises →JSW Steel Limited — Q3 FY26
JSW Steel reported a strong operational quarter with consolidated revenue of INR 45,991 crore and adjusted EBITDA of INR 6,620 crore (margin 14.4%).
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JSW Steel reported a strong operational quarter with consolidated revenue of INR 45,991 crore and adjusted EBITDA of INR 6,620 crore (margin 14.4%). PAT surged to INR 2,410 crore, boosted by deferred tax asset recognition. Domestic sales grew 10% YoY, with value-added products at a record 61% of mix. The company announced a 5 MTPA greenfield plant in Odisha (INR 31,600 crore capex) and a JV with JFE Steel for BPSL, unlocking INR 32,000 crore cash. Management expects Q4 margins to improve on recovering steel prices (up INR 3,500/ton since Dec) and seasonally strong demand, despite coking coal cost headwinds of $15-20/ton. FY27 demand growth guided at 7-9%. Risk: Chinese steel export surge could keep Asian prices subdued.
जेएसडब्ल्यू स्टील का तिमाही प्रदर्शन मजबूत रहा। कंपनी की कुल कमाई ₹45,991 करोड़ रही, और परिचालन मुनाफा (EBITDA) ₹6,620 करोड़ (14.4% मार्जिन) हुआ। शुद्ध मुनाफा (PAT) ₹2,410 करोड़ पहुंचा, जो टैक्स बचत से मिला। देश में बिक्री 10% बढ़ी, और 61% बिक्री वैल्यू-एडेड उत्पादों की रही। कंपनी ओडिशा में 5 MTPA का नया प्लांट लगाएगी (₹31,600 करोड़ खर्च) और जेएफई स्टील के साथ साझेदारी से ₹32,000 करोड़ नकद मिलेगा। प्रबंधन को उम्मीद है कि स्टील की कीमतें बढ़ने (दिसंबर से ₹3,500/टन) और मांग मजबूत होने से चौथी तिमाही में मुनाफा बेहतर होगा। हालांकि, कोकिंग कोल की लागत $15-20/टन बढ़ सकती है। अगले वित्त वर्ष में मांग 7-9% बढ़ने का अनुमान है। जोखिम: चीन का स्टील निर्यात बढ़ने से एशियाई कीमतें कम रह सकती हैं।
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Chinese steel export surge may keep Asian prices subdued
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Read Transcript →Quarter Snapshot
Crude steel production (consolidated)
7.48M tons
+6% YoY
Consolidated crude steel production for Q3 FY26.
Domestic sales growth
10% YoY
+10% YoY
Domestic sales rose 10% YoY in Q3, ahead of India's consumption growth.
Value-added product sales
4.54M tons
+16% YoY
Record value-added product sales, forming 61% of total volumes.
JSW One GMV
INR 4,544 crore
+36% YoY
Q3 GMV for JSW One platform, with steel volumes up 43% YoY.
What Changed vs Last Quarter
NEW
FY26 volume guidance maintained: production 30.5M tons, sales 29.2M tons
Management expects to broadly achieve full-year guidance for production and sales, with Q4 volumes similar to Q3.
NEW
Q4 margins expected to improve
Steel prices have recovered INR 3,500/ton since end-December, offsetting higher coking coal costs ($15-20/ton increase).
NEW
FY27 India steel demand growth 7-9%
Management projects India steel demand growth of 7-9% for FY2027.
NEW
FY26 capex guidance INR 15,000-16,000 crore
Total capex for FY26 expected in the range of INR 15,000-16,000 crore.
DROPPED
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.
DROPPED
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
Iron ore prices expected to decline in Q3
Management expects iron ore prices to decline in Q3, which would be positive for costs.
DROPPED
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.
NEW RISK
Chinese steel export surge may keep Asian prices subdued
Chinese steel exports surged 14% to 133.5M tons in CY2025, pressuring regional prices. Anti-involution measures may take time to have effect.
NEW RISK
CBAM impact on European exports
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.
NEW RISK
Iron ore availability and cost
Despite captive mines, 50% of iron ore requirement will be from market. Any supply disruption or price increase could impact costs.
NEW RISK
High capex may strain balance sheet
INR 100,000 crore capex over 4-5 years could increase net debt, though BPSL cash inflow provides some cushion.
RISK GONE
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.
RISK GONE
Lumpy capacity additions pressuring realizations
New capacities coming on stream in India have led to a discount to import parity, impacting realizations.
RISK GONE
CBAM implementation uncertainty
European CBAM rules are still awaited; while exposure is small, it could affect export strategy and trade flows.
RISK GONE
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.
🤫 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 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 Q1 FY25, Q2 FY25
Ohio and Texas combined posted an EBITDA loss of $11 million due to price drops and unplanned maintenance shutdown, with uncertain recovery timing.
Fast read
Guidance and risk preview
Management expects to broadly achieve full-year guidance for production and sales, with Q4 volumes similar to Q3.
Chinese steel exports surged 14% to 133.5M tons in CY2025, pressuring regional prices.
View Risks →