JSWSTEEL - JSW Steel

📊 NSE: JSWSTEEL 🏢 Steel - Large 📅 Last Updated: 12/14/2025 8:42

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations reached INR 45,152 Cr in Q2 FY26, representing a 14% YoY growth from INR 39,684 Cr. Standalone revenue grew 6.7% YoY to INR 32,859 Cr. JSW One (digital segment) reported a GMV of INR 3,952 Cr, up 43% YoY.

Geographic Revenue Split

Indian operations contributed the majority of revenue with steel sales of 7.07 mt (96% of consolidated volumes). US Ohio operations reported revenue of USD 194.02 million, while US Plate and Pipe Mill revenue was not explicitly totaled but reported sales of 129,124 net tonnes of plate.

Profitability Margins

Consolidated Net Profit (PAT) stood at INR 1,646 Cr for Q2 FY26, a 307% increase from INR 404 Cr in Q2 FY25, resulting in a net margin of 3.6%. Standalone Profit Before Tax was INR 2,016 Cr, up 27% YoY.

EBITDA Margin

Consolidated Adjusted EBITDA margin was 17.4% (INR 7,849 Cr) in Q2 FY26, compared to 14.2% (INR 5,644 Cr) in Q2 FY25. Standalone Adjusted EBITDA margin was 16.6% (INR 5,457 Cr).

Capital Expenditure

The company is pursuing a target to reach 50 mtpa capacity by FY 2031. While specific quarterly capex spend was not totaled, the BPSL transaction will provide INR 32,000 Cr in cash proceeds to fund future growth and deleveraging.

Credit Rating & Borrowing

Long-term ratings are [ICRA]AA and [CARE]AA, both placed on 'Watch with Positive Implications' following the JFE deal. Short-term rating is [ICRA]A1+. Net Debt to EBITDA stood at 2.97x in Q2 FY26, expected to improve to 2.1-2.2x by FY2027-28.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Coking Coal and Iron Ore. The company noted lower consumption of both iron ore and coking coal on a per-tonne basis in Q2 FY26.

Import Sources

Not disclosed in available documents, though coking coal is typically imported to India for steel production.

Capacity Expansion

Current India capacity utilization is 92%. The company aims to achieve 50 mtpa steel-making capacity in India by FY 2031. BPSL capacity was recently enhanced from 2.75 mtpa to 4.5 mtpa.

Raw Material Costs

Indian operations benefited from lower coking coal prices during Q2 FY26. Specific percentage of revenue for raw materials was not disclosed, but cost improvements were a key driver for the INR 1,090 Cr positive EBITDA movement QoQ.

Manufacturing Efficiency

India capacity utilization reached 92% in Q2 FY26. Crude steel production grew 17% YoY to 7.90 mt due to ramp-up at BPSL and Vijayanagar.

📈 Strategic Growth

Expected Growth Rate

8-9%

Growth Strategy

Growth will be achieved by expanding Indian capacity to 50 mtpa by 2031, monetizing assets through the JFE JV (INR 24,483 Cr slump sale), and scaling the JSW One B2B platform which saw 53% YoY growth in steel volumes.

Products & Services

Crude steel, steel slabs, Hot Rolled Coils (HRC), steel plates, steel pipes, and value-added special steel products for automotive and electrical applications.

Brand Portfolio

JSW Steel, JSW One, JSW One Finance, JSW Kalinga Steel, JSW Sambalpur Steel.

New Products/Services

Value-added steel products including non-oriented and grain-oriented electrical steel sheets through JFE collaboration.

Market Expansion

Targeting the Indian domestic market which is projected to grow 8-9% in FY26; also maintains operations in the USA (Ohio, Texas).

Market Share & Ranking

JSW Steel is the flagship business of the USD 23 billion JSW Group and a leading integrated steel producer in India.

Strategic Alliances

50:50 Strategic Joint Venture with JFE Steel Corporation, Japan for the BPSL business undertaking; JFE to invest INR 15,750 Cr.

🌍 External Factors

Industry Trends

India is the fastest-growing major steel market; recent GST cuts are expected to boost consumer sentiment and demand.

Competitive Landscape

Intense competition within the steel industry is cited as a primary risk factor.

Competitive Moat

None

Macro Economic Sensitivity

Steel demand is highly sensitive to GDP, with a projected 8-9% growth for the current fiscal year supported by government and private capex.

Consumer Behavior

Shift toward digital procurement via platforms like JSW One (135,000+ visits in Q2) and increased demand for value-added steel in automotive/appliances.

Geopolitical Risks

Global export trends are noted as a challenge that requires close monitoring.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) 2015; transaction requires shareholder and regulatory approvals (6-9 month timeline).