JSW Steel (JSWSTEEL) Q1 26/27 earnings summary

Executive summary

• Revenue from operations rose 19% YoY to ₹47,364 crore in Q1 FY27, with net profit at ₹4,696 crore and adjusted EBITDA at ₹9,373 crore, reflecting strong operational and financial performance.

• Crude steel production reached 6.59 million tonnes, up 3% YoY, and saleable steel sales were 6.25 million tonnes, up 4% YoY, with best-ever Q1 sales in Flats and VASP segments.

• Net debt reduced significantly to ₹46,157 crore, with net debt-to-equity at 0.42x and net debt-to-EBITDA at 1.46x, following the JSW JFE JV transaction and equity infusion.

• Capacity utilisation in India reached 94% (excluding BF-3), and major project milestones included the completion and ramp-up of Vijayanagar BF-3 and groundbreaking of a 1mtpa EAF at Kadapa.

• India reverted to being a net steel importer in Q1, with imports up and exports down.

Financial highlights

• Adjusted EBITDA reached ₹9,373 crore with a 19.8% margin; net profit was ₹4,696 crore, and revenue from operations was ₹47,364 crore.

• Net debt stood at ₹46,157 crore as of June 30, 2026, down ₹7,713 crore from March 31, 2026.

• Diluted EPS for the quarter was ₹19.02, up from ₹9.03 YoY.

• Interest costs declined 17% YoY due to lower debt.

• Overseas operations (Ohio, Texas, Italy) generated positive EBITDA, with combined US EBITDA at $16 million and Italy at EUR 7 million.

Outlook and guidance

• Domestic steel demand expected to grow 7%-9% in FY27, adding 12-13 million tonnes, with robust demand in automotive, real estate, and infrastructure sectors.

• FY27 consolidated production guidance is 29.75mt; sales guidance is 28.6mt.

• Capex spend for FY27 expected at ₹22,000–24,000 crore, with major projects scheduled for commissioning through FY30.

• Coking coal costs expected to rise by $12-$15/ton in Q2, but recent declines should benefit Q3; iron ore costs trending down.

• Expansion projects are on track, with incremental volumes expected from Vijayanagar BF-3 in Q2 FY27.