Metals major JSW Steel reported a consolidated net profit of Rs 2,209 crore for the quarter ending June 30, 2025, significantly higher by nearly 155 percent year-on-year, as well as 47 percent higher over the March quarter.
The bottomline for the JSW Group flagship for Q1 FY26 improved on account of lower costs due to coking coal price reductions, as well as strong price growth over the quarter, driven by the Union government's safeguard duties against some imported steel.
Despite the safeguard duties acting as a catalyst towards the reduction of imports, the company noted that imports from China remain a concern.
"While finished steel imports have moderated, exports have fallen as well and India continues to be a net importer. Low priced imports remain a concern, accentuated by changes in global trade flows due to rising tariff uncertainties. While there has been some reduction in steel production in China in recent months, the elevated Chinese exports continue to be a challenge for the industry," JSW Steel said in a release.
The consolidated revenue marginally increased year-on-year to Rs 43,147 crore, although it was lower than the Rs 44,819 crore in revenue reported in the January-March quarter.
Capacity utilisation for the quarter was 87 percent, against 93 percent for the March quarter. JSW Steel attributed the lower utilisation due to planned maintenance shutdowns. Despite lower utilisation, consolidated production for the quarter improved to 7.26 million tonne (MT) against 6.35 MT in the year prior.
At a consolidated level, steel sales increased to 6.69 MT, from 6.12 MT in the corresponding period last year. Sales in its India operations increased to 6.43 MT for the reported period against 5.90 MT in the previous year.
Higher sales volumes and price support resulted in a 37 percent year-on-year increase in the company's operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter to Rs 7,576 crore, translating to an EBITDA margin of 17.6 percent. The company spent Rs 3,400 crore during the quarter for capital expenditure, with ongoing and upcoming works at its Vijayanagar and Dolvi works.
JSW Steel has targeted a capital expenditure spend of Rs 20,000 crore for FY26. The company's net debt at the end of June 30 stood at Rs 79,580 crore, higher than that at the end of March 2025, which the company attributed to more investment in working capital.
The company declared its financial results just before the close of trading on July 18. Its shares on the National Stock Exchange closed 1 percent higher at Rs 1,044.80 apiece.
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