JSW Steel reported a net profit of Rs 1,623 crore for the second quarter of the ongoing financial year 2026 on October 17. This marks a four-fold increase from the Rs 439 crore net profit reported in the same period last year for the steel major.
Sequentially, the net profit however declined around 26 percent from the Rs 2,184 crore net profit reported in Q1 FY26.
Revenue from operations rose 14 percent on-year to Rs 45,152 crore in Q2 FY26, from Rs 39,684 crore in Q2 FY25. Total expenses increased over 11 percent on-year to Rs 43,004 crore during the quarter under review.
Pricing Improvement
A year-on-year improvement in sales, as well as incremental increases in steel prices due to measures such as the safeguard duty on some grades of flat steel, has resulted in key competitive metrics such as earnings before interest, taxes, depreciation, and amortisation (EBITDA), as well as EBITDA per tonne. Earlier this month, the Sajjan Jindal-helmed firm reported a 20 percent increase in steel sales to 7.34 million tonne (MT).
For the July-September quarter, JSW Steel's EBITDA on an adjusted basis was Rs 7,849 crore, higher by 39 percent year-on-year, but flat over the April-June period. On a per-tonne basis, its EBITDA was Rs 10,701, higher by 16 percent year-on-year, and lower by 9 percent sequentially
JSW Steel's EBITDA margin for the quarter improved by more than 300 basis points to 17.4 percent, compared to 14.2 percent in the year-ago period.
Capital expenditure plans
JSW Steel spent Rs 3,135 crore in capital expenditure for the July-September quarter, with the company guiding a total capital expenditure spend of Rs 20,000 crore for the ongoing financial year. Till the end of the decade, the company has planned a total capital expenditure of around Rs 1 lakh crore.
The company has finished the commissioning of its 5 million tonne per annum (MTPA) hot strip mill at its Vijaynagar works in Karnataka, and has now announced plans to expand elsewhere, including at its downstream facilities.
At its other major steelworks in Dolvi, Maharashtra, the company is planning to start work on the third phase of expansion works, to take its capacity to 15 MTPA, from the current 10 MTPA. The company said in a release that long-lead items have been ordered and letters of credit have been established, with the project expected to be completed by September 2027.
Other than its blast furnace-based facilities, JSW Steel is planning to set up a 1 MTPA electric arc furnace (EAF) steel production plant in Kadapa, Andhra Pradesh, which will also include production facilities for structured steel, widely used in infrastructure and real estate.
Strategic reorganization of the JSW Steel's US operations
JSW Steel announced that its board has approved the plan to consolidate all business operation into single holding in US held under JSW Steel (Netherlands) B.V., subject to regulatory and other approvals. This restructuring will optimize financial and operational outcomes, the firm said.
"The Company has established its footprint in the US steel manufacturing sector through investments in multiple entities under Peria ma Holdings LLC (Peria ma) and Acero Junction Holdings Inc. (Acero). The Baytown operations comprising of the Plate & Pipe mills at Baytown, Texas along with certain coking coal assets in West Virginia, are held through Periama, which is a wholly owned subsidiary of JSW Steel (Netherlands) B.V. (JSW Netherland). The Ohio steel manufacturing operations are housed under Acero," it added.
Merger of Indian Subsidiaries
The board also approved plan to merge its wholly owned subsidiaries Amba River Coke Limited, Monnet Cement Limited and JSW Retail and Distribution Limited with itself. "The merger will bring operational efficiency as there are synergistic linkages between these companies," the company said.
Outlook
Global growth in 2025 has remained resilient, supported by front-loaded trade flows and consumption ahead of tariff changes, JSW Steel said. It however added that the outlook for 2026 is more cautious, with continued geopolitical uncertainty and elevated tariffs likely to weigh on momentum, despite some easing following recent trade agreements.
"In the U.S., robust consumer spending and strong investment in Al-related sectors are sustaining growth. The Federal Reserve has resumed rate cuts in response to a softening labour market. While the pass-through of tariffs to inflation has been limited so far, it may increase going forward," it said.
Also read: Our LIVE blog on Q2 results
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