JSW Steel net profit rises 200% to Rs 2,410 crore in December quarter, sales grow

JSW Steel Q3 Results LIVE: Net profit jumps 200% to Rs 2,139 crore

JSW Steel on Friday reported a 200 percent rise in its consolidated net profit at Rs 2,410 crore for the December quarter. The company had logged a net profit of Rs 719 crore in the year-ago period, JSW Steel said in a filing to the National Stock Exchange (NSE).

In a press release, the JSW Group flagship said that the increase in profits were also helped by net deferred tax assets of Rs 1,439 crore, relating to the brought-forward unabsorbed depreciation in its subsidiary Bhushan Power and Steel Ltd (BPSL), whose steel assets will be held by JSW Steel and JFE Steel in a joint venture.

"It is probable that carried forward unabsorbed depreciation will be recovered against the likely capital gains on the slump sale of BPSL's steel business undertaking," the company said in the release, on the recognition of deferred tax assets.

The company's revenue from operations grew 11 percent to Rs 45,219 crore in the quarter under review. It had reported a top line of Rs 40,793 crore in the same period a year ago. Total steel production for the quarter declined by 5 percent sequentially to 7.48 million tonne, owing to the shutdown at one of the company's  blast furnaces. However, production was still higher by 6 percent over the same quarter last year, due to ramp-up in production at new blast furnaces.

Both domestic sales and exports grew year-on-year, translating to total sales of 7.64 million tonne for the quarter, higher by 14 percent year-on-year. The earnings before interest, taxes, depreciation and amortization, or EBITDA, came in at Rs 6,496 crore. However, the EBITDA margin was reported at 14.1 percent, compared to 17.4 percent in the July-September quarter, reflecting poor pricing power in the industry.

The sluggishness in steel prices was also reflected in the EBITDA per tonne, declining by 19 percent sequentially to Rs 8,662.

The net-debt-to-EBITDA ratio at the end of the December quarter was 2.91x, compared to 2.97x in Q2FY26. Consolidated net debt for JSW Steel inched slightly higher to Rs 80,347 crore.

Shares of JSW Steel settled lower at Rs 1,165.40 per share on the NSE, down 1.6 percent.

Management commentary

JSW Steel's CEO and joint MD Jayant Acharya said that despite steel prices reaching "multi-year lows" in December 2025 due to high levels of competition from imported steel, prices have started moving upwards since the end of December and through the ongoing month. He cited the re-imposition of the safeguard duty against some grades of imported steel to be driving steel prices.

Acharya, in remarks to investors, said that flat steel prices have risen by around Rs 3,500 per tonne since the end of December 2025. He added that demand has been strong across sectors, from construction, commercial real estate, automobiles, appliances, and renewable energy.

As for the company's next large-scale capacity expansion projects, Acharya said that the board is finalising a Rs 20,800 crore expansion of its facility at Dolvi in Maharashtra. Its next greenfield project is also slated to be underway, a 5 million tonne per annum facility at Jagatsinghpur in Odisha, for which a capital expenditure of Rs 31,600 crore has been proposed.

The site is also slated to have around 350 MW of captive power supply, and power will also be drawn from the grid, Acharya said.

With the European Union imposing the Carbon Border Adjustment Mechanism (CBAM) against carbon-intensive steel imports, the management said that it is assessing the overall impact of the measure. While JSW Steel exports around 1.3 million tonne per annum to Europe, the management also noted that the share of exports in the overall sales pie has continued to decline over the years, due to the company's focus on the Indian market.