JSW Steel (JSWSTEEL) Q2 25/26 earnings summary

Executive summary

• Achieved record consolidated crude steel production of 7.90 million tonnes in Q2 FY26, up 17% YoY, with sales at 7.34 million tonnes, up 20% YoY, driven by ramp-up at Dolvi, JVML, and BPSL expansions.

• Revenue from operations reached ₹45,152 crores, up 14% YoY; adjusted EBITDA rose 39% YoY to ₹7,849 crores (margin 17.4%), and net profit after tax was ₹1,646 crores, up 307% YoY.

• Domestic sales rose 14% YoY, exports surged 89% YoY, retail sales grew 26% YoY, and capacity utilization improved to 92%.

• Major project milestones included the Supreme Court upholding the BPSL resolution plan, expansion of electrical steel capacity, and commissioning of India's first 25MW green hydrogen electrolyser.

• Digital transformation, AI integration, and sustainability initiatives advanced, with 885 MW of renewable power capacity operational.

Financial highlights

• Consolidated revenue from operations: ₹45,152 crores (up 14% YoY); adjusted EBITDA: ₹7,849 crores (up 39% YoY, margin 17.4%); net profit after tax: ₹1,646 crores (up 307% YoY).

• Indian operations posted revenue of ₹42,149 crores, adjusted EBITDA of ₹7,614 crores (margin 18.1%), and PAT of ₹1,778 crores.

• Net debt as of 30 Sep 2025: ₹79,153 crores, reduced by ₹697 crores QoQ; net debt to equity: 0.93x; net debt to EBITDA: 2.97x.

• Adjusted EBITDA per tonne was ₹10,701, up 16% YoY; standalone revenue was ₹32,859 crores, standalone PAT ₹1,493 crores.

• Interest cost up 13% YoY due to capitalisation of new capacities and FX impact.

Outlook and guidance

• India’s GDP growth forecast revised up to 6.8% for FY26, with strong domestic demand and GST reforms expected to boost consumption.

• Steel demand in India expected to rebound in H2 FY26, supported by infrastructure, rural growth, and accommodative monetary policy.

• FY26 consolidated production guidance: 30.5mt; sales guidance: 29.2mt.

• Global growth in 2025 remains resilient, but 2026 outlook is cautious due to geopolitical uncertainty and tariffs.

• Net debt to EBITDA ratio targeted to remain below 3, with leverage closely monitored.