Synopsis:
JSW Steel reported strong Q1 FY26 profits despite a dip in revenue. Net profit rose 154.8% YoY to Rs. 2,209 crore, driven by higher steel production. The company is boosting future growth with a new acquisition, an iron ore JV, and major capacity expansion projects.
One of India’s top steel producers attracted market attention today following the release of its Q1 FY26 results. Despite a sequential decline in revenues, the company delivered a sharp improvement in profitability both quarter-on-quarter and year-on-year, supported by higher production and better operating efficiencies. Recent strategic decisions, including a joint venture and a land acquisition in Odisha, are also expected to bolster its future growth prospects.
The company in focus is JSW Steel Limited, with a market capitalization of Rs. 2,55,501 crore. The stock opened today at Rs. 1,039, slightly higher than its previous close of Rs. 1,034.20, and touched an intraday high of Rs. 1,053.50, reflecting a gain of approximately 1.86 percent over the previous closing price.
What’s the News?
Quarter-on-Quarter basis, JSW Steel’s revenue from operations for the quarter ended June 2025 declined, falling from Rs. 44,819 crore in March 2025 to Rs. 43,147 crore.
However, the company saw a significant improvement in profitability. Profit before tax (PBT) rose by 77.6 percent from Rs. 1,730 crore to Rs. 3,072 crore, while net profit surged by 47.2 percent from Rs. 1,501 crore to Rs. 2,209 crore.
Year-on-Year basis, the company’s financial performance reflected considerable improvement. Revenue from operations increased by 0.5 percent from Rs. 42,943 crore in Q1 FY25 to Rs. 43,147 crore in Q1 FY26.
Profit before tax more than doubled, increasing by 122.6 percent from Rs. 1,380 crore to Rs. 3,072 crore. Net profit jumped by 154.8 percent from Rs. 867 crore to Rs. 2,209 crore. The strong year-on-year performance was primarily driven by higher crude steel production and better realisations.
During the quarter, JSW Steel reported consolidated crude steel production of 7.26 million tonnes, up 14 percent year-on-year, driven by the ramp up of new capacities at BPSL and JVML Vijayanagar.
However, production was down 5 percent QoQ due to planned maintenance activities that kept capacity utilisation at 87 percent in Indian operations. Total sales volumes stood at 6.69 million tonnes, up 9 percent year-on-year but down 11 percent quarter-on-quarter, reflecting seasonal trends.
Strategic Outlook and Other Information
In a significant strategic move, JSW Steel’s Board has approved the acquisition of up to 100 percent equity interest in Saffron Resources Private Limited, at an enterprise value of Rs. 679.34 Crores. Saffron holds 887 acres of land in Odisha, which is expected to strengthen the company’s resource base and future expansion capabilities in the region.
Additionally, the Board has approved the formation of a joint venture with Andhra Pradesh Mineral Development Corporation Limited (APMDC), where JSW Steel will hold 89 percent and APMDC 11 percent equity as a free ride stake.
This JV will establish the Konijedu Marlapadu Integrated Iron Ore Project in Andhra Pradesh at an estimated cost of Rs. 1,075 crore. The project aims to mine and beneficiate low-grade iron ore, with an expected output of 1.3 million tonnes of beneficiated iron ore concentrate per annum. This initiative is strategically important as it will replace imported iron ore, leading to significant cost savings for JSW Steel.
JSW Steel is also advancing multiple expansion projects, including the Dolvi Phase-III expansion, which will increase capacity from 10 to 15 MTPA by September 2027, a 0.6 MTPA cold rolling mill at Khopoli, and an 8 MTPA pellet plant in Jagatsinghpur, Odisha, all expected to be commissioned between FY27 and FY28. These projects underline the company’s commitment to capacity growth and operational enhancement.
Witten By Manan Gangwar
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