Sajjan Jindal-led JSW Steel reported a 307% year-on-year jump in net profit for the second quarter of the financial year 2026 at Rs 1,646 crore, up from Rs 404 crore, driven by lower mining premium and royalties, inventory costs, and the absence of an exceptional item on account of the provision for surrender of Jajang Iron Ore mining lease.
The steelmaker, however, missed Bloomberg estimates which pegged profit after tax (PAT) at Rs 1,766 crore.
Revenue from operations grew marginally by 14% to Rs 45,152 crore during the quarter, ahead of Bloomberg estimates of Rs 44,171 crore.
Earnings before interest, taxation, depreciation and amortisation (Ebitda) was up 31% year-on-year at Rs 7,115 crore, also beating Bloomberg estimates of Rs 6,938 crore. Ebitda margin was 15.8%, while PAT margin was 3.6%.
Adjusted Ebitda (excludes unrealised forex gains and losses on long-term borrowings, net of unrealised forex gains and losses on inter-company receivables) increased by 39% y-o-y for the quarter at Rs 7,849 crore, with a margin of 17.4%, driven primarily by higher volumes and lower iron ore, coking coal and power costs, partly offset by a decrease in realisations.
Consolidated crude steel production for the quarter stood at 7.9 million tonnes, up 17% from the same quarter last fiscal, driven by the Dolvi plant operating at optimum capacity post planned maintenance shutdown in Q1FY26 and ramp up of JVML and BPSL expansions.
Steel sale volume for Q2FY26 stood at 7.34 million tonnes, 20% higher than Q2FY25. Domestic sales increased 14% annually to 6.33 million tonnes. Exports increased by 89% y-o-y and 56% q-o-q, contributing 10% to the sales from the domestic operations for Q2FY26. Retail sales volumes grew by 26% y-o-y and 13% q-o-q.
The company’s net gearing (net debt to equity) stood at 0.93x at the end of the September quarter, as against 0.95x at the end of the June quarter, and net debt to Ebitda stood at 2.97x as against 3.2x at the end of Q1FY26.
As of September 30, net debt stood at Rs 79,153 crore as against Rs 79,850 crore at the end of June, lower by Rs 697 crore, JSW Steel added.
Consolidated capex for the quarter was Rs 3,135 crore, and Rs 6,535 crore during the first half of FY26. The steel major maintained its guidance to deploy Rs 20,000 crore capex for the full fiscal.
India operations
Revenue from operations for domestic operations stood at Rs 42,149 crore and operating Ebitda was Rs 6,881 crore in Q2, up 25% y-o-y. Adjusted Ebtida for the quarter was at Rs 7,614 crore, up 35% on-year. The Ebitda was Rs 10,768 per tonne and margin for the quarter was 18.1%. PAT for the Indian operations for the quarter was at Rs 1,778 crore, up 113% on-year.
Crude steel production increased by 16% to 7.66 million tonnes and steel sales surged by 19% to 7.07 million tonnes.
Capacity utilisation was at 92% during the quarter as compared to 87% in the previous quarter, which was impacted by planned maintenance shutdowns, the steelmaker said.
The firm’s share price was down 0.77% at the Bombay Stock Exchange at Rs 1162.8 on Friday.
Update on BPSL
The firm noted that the Supreme Court, in its judgement dated September 26, had dismissed the appeals filed by the erstwhile promoters and certain operational creditors of Bhushan Power and Steel (BPSL) and upheld the National Company Law Appellate Tribunal (NCLAT) order of 2020 approving JSW Steel’s resolution plan for BPSL.
“The Supreme Court also noted the substantial efforts of JSW Steel in resolving and turning around BPSL as a profit-making company,” JSW Steel said in its earnings release.
BPSL registered crude steel production of 0.96 million tonnes and sales volume of 0.83 million tonnes in Q2. Revenue from operations and adjusted Ebitda for the quarter stood at Rs 5,162 crore and Rs 724 crore, respectively. The adjusted Ebitda declined by 5% q-o-q, primarily due to lower realisations, partially offset by reduced cost and higher volumes. BPSL reported a profit after tax of ₹166 crores for the quarter.