Shares of JSW Steel were trading nearly 2% higher on Tuesday, January 27, after the company reported a sharp jump in profitability for the December quarter, supported by record sales volumes and lower input costs.
JSW Steel reported a more than three-fold rise in consolidated profit after tax (PAT) to Rs 2,410 crore for Q3 FY26, compared with Rs 719 crore in the same quarter last year. The profit figure includes the recognition of deferred tax assets of Rs 1,439 crore related to unabsorbed depreciation at Bhushan Power & Steel Limited (BPSL), which the company said is likely to be recovered against capital gains from the proposed slump sale of BPSL’s steel business.
The company’s total income increased 11.4% year-on-year to Rs 46,264 crore, while revenue from operations stood at Rs 45,991 crore during the quarter. Consolidated steel sales hit an all-time high of 7.64 million tonnes, marking a 14% YoY growth, driven by strong domestic demand and a sharp rise in exports.
Domestic sales rose 10% YoY to 6.59 million tonnes, while exports jumped 53% YoY to 0.84 million tonnes, accounting for 11% of Indian operations’ sales. Retail sales volumes also grew 12% year-on-year.
JSW Steel’s adjusted EBITDA climbed 22% YoY to Rs 6,620 crore, aided by higher volumes and lower coking coal and power costs, although partially offset by lower realisations. The company clarified that adjusted EBITDA excludes unrealised forex gains or losses to better reflect operating performance.
At subsidiary Bhushan Power & Steel Limited, crude steel production stood at 1.0 million tonnes, with sales of 0.98 million tonnes. BPSL reported revenue of Rs 5,770 crore, adjusted EBITDA of Rs 611 crore, and a PAT of Rs 1,578 crore for the quarter.
On the expansion front, JSW Steel said the JVML-Vijayanagar project was fully commissioned during Q3, while Blast Furnace-3 at Vijayanagar is undergoing expansion and is expected to be commissioned by the end of Q4 FY26. The board has also approved a 5 MTPA greenfield steel plant in Odisha with a capex of Rs 31,600 crore, to be developed through its subsidiary JSW Utkal Steel Ltd.
Additionally, the company highlighted its strategic joint venture with Japan’s JFE Steel for the BPSL steel business, which is expected to result in significant cash inflows and deleveraging.
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