JSW Steel (JSWSTEEL) Q1 25/26 earnings summary

Executive summary

• Consolidated crude steel production rose 14% YoY to 7.26 million tonnes, with sales up 9% YoY to 6.69 million tonnes and domestic sales up 12% YoY; India remains a net importer due to low-priced imports.

• Revenue from operations was ₹43,147 crore, operating EBITDA grew 37% YoY to ₹7,576 crore (margin 17.6%), and net profit after tax stood at ₹2,209 crore.

• Recognized for sustainability and workplace excellence, including FTSE4Good, CDP A-list, and India's Best Employers.

• Major capacity expansions and downstream projects are on track, including Dolvi Phase III, new cold rolling and galvanizing lines, and a 0.55 MTPA CRNO steel facility.

• Capacity utilization in India was 87%, impacted by planned maintenance shutdowns.

Financial highlights

• Q1 consolidated revenue was ₹43,147 crore, operating EBITDA at ₹7,576 crore (margin 17.6%), and PAT at ₹2,209 crore; Indian operations EBITDA margin at 18.5%.

• Net debt increased to ₹79,850 crore, up ₹3,287 crore QoQ, with net debt to equity at 0.95x and net debt to EBITDA at 3.20x.

• Overseas operations contributed EBITDA of ₹187 crore, reversing a loss from the previous quarter; US operations EBITDA at $20.39mn.

• JSW One digital platform achieved GMV of ₹3,919 crore, up 1.5x YoY, and became a unicorn with $1bn+ valuation.

• Indian operations reported revenue of ₹40,510 crore and EBITDA of ₹7,496 crore, up 38% YoY.

Outlook and guidance

• Indian steel demand expected to grow 8.5%-9.5% in FY26, with Q2 volumes to rise as shutdowns end and new converter starts.

• FY26 consolidated production guidance set at 30.5mt and sales at 29.2mt.

• RBI maintains India's FY26 GDP growth projection at 6.5%; global economic growth forecast revised down to 2.9%.

• Coking coal and iron ore costs expected to decline marginally in Q2, partly offsetting softer steel prices.

• On track to achieve 1GW renewable energy capacity by Q2 FY26, supporting decarbonization goals.