Sajjan Jindal-led JSW Steel reported a 198% year-on-year jump in net profit for the fiscal third quarter, driven by one-time tax gains, lower mining premium and royalties, and reduced power and fuel costs.
Net profit attributable to the promoters of the company came in at Rs 2,139 crore (Q3FY25: Rs 717 crore), beating Bloomberg estimates of Rs 1,400 crore.
Revenue from operations grew 11% to Rs 45,991 crore during the quarter, ahead of Bloomberg estimates of Rs 44,515 crore.
Reported earnings before interest, taxation, depreciation and amortisation (EBITDA) was up 16.4% year on year at Rs 6,496 crore, marginally beating Bloomberg estimates of Rs 6,447 crore. EBITDA margin was 14.1% while PAT margin was 4.7%.
Adjusted EBITDA (excludes unrealised forex gains and losses on long-term borrowings, net of unrealised forex gains and losses on intercompany receivables) for the quarter was Rs 6,620 crore, with a margin of 14.4%. The Adjusted EBITDA increased by 22% YoY, driven primarily by higher volumes and lower coking coal and power costs, partly offset by lower realisations, the steelmaker said.
Operational Efficiency vs. Sequential Headwinds
Consolidated crude steel production for the quarter stood at 7.48 million tonnes, 6% higher than the same quarter last fiscal, driven by the ramp-up of the JVML-Vijayanagar project. However, production fell 5% sequentially due to shutdown of blast furnace-3 (BF-3) at Vijayanagar from the end of September 2025 for upgradation of capacity.
Consolidated steel sale volume for Q3FY26 stood at 7.64 million tonnes, higher by 14% over Q3FY25. Domestic sales at 6.59 million tonnes increased 10% annually. Exports at 0.84 million tonne increased by 53% YoY, contributing 11% to the sales from the Indian operations for Q3FY26. Retail sales volumes grew by 12% year-on-year.
The company’s net gearing (net debt to equity) stood at 0.92x in the third quarter, as compared to 0.93x at the end of the previous quarter and net debt to EBITDA stood at 2.91x as against 2.97x at the end of Q2FY26.
Net Debt as of December 31, 2025 stood at Rs 80,347 crore as against Rs 79,153 crore at the end of September 2025, higher by Rs 1,194 crore.
Strategic Pivot
Consolidated capex for Q3 was Rs 3,482 crore and Rs 10,018 crore during the nine months ended December 31, 2025. The steel major reduced capex its guidance for the fiscal to Rs 15,000-16,000 crore, as against the earlier stated guidance of Rs 20, 000 crore for the full fiscal.
“The Board has approved a 5 MTPA steel plant at our new site in Jagatsinghpur, Odisha. The project will be housed in our subsidiary, JSW Utkal Steel Ltd., and will entail a capex of ₹ 31,600 crores with commissioning by FY30,” JSW Steel said in a statement.
India operations
Revenue from operations for the Indian came in at Rs 43,422 crore and adjusted EBITDA was Rs 6,522 crore in Q3, up 19% y-o-y and margin was 15%. Adjusted EBITDA per tonne for the quarter was Rs 8,785 up 4% on-year, though down 18% sequentially. Reported EBITDA came in at Rs 6,400 crore, up 15% year on year. Indian operations PAT for the fiscal second quarter was Rs 2,668 crore up 144.5% on-year from Rs 1,091 in Q3FY25.
Crude steel production at the Indian Operations in Q3 was 7.28 million tonne up 7% annually and steel sales were 7.42 million tonnes up 14%.
The capacity utilisation for Indian operations for the quarter was at 93% excluding BF-3 capacity at Vijayanagar which is under shutdown, and was at 85% including BF-3 capacity.
The firm’s share price was down 1.31% on the Bombay Stock Exchange at Rs 116935 on Friday. The results were announced towards the end of trading hours.
JV with JSW Realty
The steelmaker also announced the formation of a joint venture entity involving its subsidiary Peddar Realty and promoter group entity JSW Realty Private Limited (JSWRPL). JSW Steel, through Peddar Realty, will invest up to Rs 51 crore in the JV, and hold 51% stake.
The joint venture company will participate in bidding for acquisition of certain identified land parcel in Mumbai through a formal tender process for development of office, commercial space, JSW Steel said in a disclosure to the exchanges.
“The Company being in expansion phase would require additional commercial / office space to meet its future captive requirement,” it added.
The transaction is expected to conclude by March 31.