JSW Steel Q3 revenue may fall 31%, EBITDA likely to crash too

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26 Aug, 2025 12:21

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JSW Steel's third quarter earnings are expected to be weak on Friday. Analysts have wide range for bottomline expectations from profit of Rs 307 crore to loss of Rs 670 crore in Q3FY16 against profit of Rs 329 crore in year-ago period.

According to average of estimates of analysts polled by CNBC-TV18, consolidated revenue is seen falling 30.7 percent to Rs 9,170 crore during the quarter compared to Rs 13,223 crore in same quarter last fiscal.

Operating profit is likely to decline 47.3 percent year-on-year to Rs 1,210 crore and margin may contract 420 basis points to 13.2 percent in quarter gone by.

Sales volumes are likely to fall 13 percent Y-o-Y to 2.63 million tonne from 3.1 million tonne and realisations may get hit by more than 5 percent Q-o-Q.

Sales volumes & realisations hit due to:-Weak domestic steel demand-Higher steel imports-Sharp fall in global prices will hit realizations also                                                                 Volumes are expected to dip due to:-Planned shutdown at Dolvi, Salem and Vijaynagar for capacity expansion -Shutdown taken to expand capacity to around 18 MT from the current 14.3 MT

EBITDA may be lower due to:-On account of negative operating leverage due to lower volumes-Lower steel realizations will outweigh any benefits-Analysts expect some cost respite with low coking coal and iron ore prices

Subsidiaries (15 percent of total revenues but margin dilutive):International business may remain a drag-Had closed its Chile iron ore mines owing to weak prices-US plate and pipe mill also is not expected to contribute significantly-Company’s plan on its US and Chile business would be interesting to watch out for