JSW Steel has reported a 154 per cent jump in net profit at ₹2,209 crore in the quarter ended June on an year-on-year basis on the back of lower raw material costs even as revenue went up marginally, signalling margin expansion.
The company reported a ₹43,147 crore total revenue from operations in Q1FY26, compared with ₹42,943 crore a year ago, a rise of 0.47 per cent. Profit in the June quarter of FY25 stood at ₹867 crore.
The cost of raw material consumed in the last quarter stood at ₹20,762 crore, compared with ₹21,463 crore in the same period of last year. Save for the Italian business, all the subsidiaries of JSW Steel such as Bhushan Power & Steel Ltd, the US operations and the coated product company performed well.
Consolidated crude steel production for the quarter stood at 7.26 million tonnes, higher by 14 per cent YoY even as capacity utilisation at the Indian operations was 87 per cent via-a-vis 93 per cent in Q4FY25, impacted by planned maintenance shutdowns.
Steel sales for the June quarter stood at 6.69 million tonnes, higher by 9 per cent YoY. Net debt as of June 30 at ₹79,850 crore, higher by ₹3,287 crore compared with March 31 mainly due to investment in working capital. The consolidated capex in Q1FY26 was ₹3,400 crore and it expects to spend ₹20,000 crore in FY26.
Commenting on the quarters gone by, the company said the global economy held up ‘reasonably well’ amidst the tariff and geopolitical tensions and the interim trade deal stabilised the outlook for China, the world’s largest steel producer and exporter.
Domestic steel demand continues to be good, aided by healthy capex by the government in Q1. Finished steel consumption grew 7.9 per cent to 38.34 mt, while crude steel production rose 10.4 per cent YoY to 40.31 mt.
M&A
JSW Steel has announced the acquisition of Saffron Resources for an enterprise value of ₹679.3 crore. Saffron holds 887 acres in Odisha, which the company said can be used for new projects going forward.
It has also entered into a share purchase option agreement to buy additional stake of up to 24.9 per cent in JSW Severfield Structures Limited from existing joint venture partners Severfield plc group for ₹235.1 crore. JSW holds a 50 per cent stake in the JV.
JSW Steel decided to set up a joint venture with the Andhra Pradesh Mineral Development Corporation to mine and beneficiate low-grade iron ore. The project will be set up at a cost of ₹1,075 crore.