JSW Steel (JSWSTEEL) Q3 25/26 earnings summary

Executive summary

• Announced a strategic 50:50 JV with JFE Steel for BPSL, enabling up to ₹32,000 crore cash inflow and ₹37,000 crore deleveraging, with future capacity expansion planned.

• Board approved a 5-million-ton steel plant in Odisha with ₹31,600 crore CapEx, commissioning by FY 2030.

• Consolidated crude steel production reached 7.48 million tonnes, up 6% YoY, with record sales of 7.64 million tonnes, up 14% YoY, driven by JVML ramp-up.

• Net profit after tax for Q3 FY26 stood at ₹2,410 crore, supported by recognition of ₹1,439 crore deferred tax asset from the BPSL transaction.

• Achieved #1 global steel sector rank in S&P Global CSA and received multiple sustainability and energy efficiency awards.

Financial highlights

• Consolidated revenue at ₹45,991 crore, up 11% YoY; adjusted EBITDA at ₹6,620 crore, margin 14.4%.

• Indian operations adjusted EBITDA at ₹6,522 crore, margin 15%.

• Net debt at ₹80,347 crore; net debt/EBITDA at 2.91x; net debt/equity at 0.92x.

• Diluted EPS for Q3 FY26 was ₹8.75, up from ₹2.93 YoY.

• Weighted average interest cost improved to 6.51%, down 60 bps YoY.

Outlook and guidance

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

• Q4 margins expected to improve with higher steel prices and strong demand.

• FY27 steel demand projected to grow 7%-9%; Indian GDP growth estimated at 7.4% for FY26.

• Capex spend of ₹15,000–16,000 crore expected during FY26, with major projects underway including Odisha, Dolvi, and Kadapa.

• BPSL JV expected to complete by Q3 FY27, enabling further deleveraging and growth.