JSW Steel Q2 profit rises 270% to ₹1,623 crore on strong sales, record production, and cost efficiencies, positioning the company for robust FY26 growth.
JSW Steel Q2 Profit Surges 270% on Record Production and Sales
JSW Steel Ltd., India’s largest steelmaker by capacity, reported a 269.7% year-on-year surge in net profit for Q2 FY26, reaching ₹1,623 crore from ₹439 crore in the same quarter last year. The JSW Steel Q2 profit surge was driven by record production of 7.90 million tonnes (MT) of crude steel, a 20% increase in sales to 7.34 MT, and capacity utilization of 92% across key plants including Dolvi and JSW Vijayanagar Metallics Ltd.
Domestic sales rose 14% to 6.33 MT, while exports more than doubled year-on-year, supported by recovering global demand. Analysts said this volume-led growth and operational efficiency were key factors behind the exceptional JSW Steel Q2 profit.
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Revenue and EBITDA Expansion Boost JSW Steel Q2 Profit
Revenue from operations climbed 13.8% to ₹45,152 crore, while adjusted EBITDA surged 39% to ₹7,849 crore, expanding margins to 17.4%. Lower input costs for iron ore, coking coal, and power played a significant role in maintaining healthy profitability despite seasonal softness in steel realizations.
EBITDA per tonne rose 13% to ₹10,768, reflecting strong operational discipline and reinforcing the JSW Steel Q2 profit growth story.
Cost Efficiencies and Strategic Initiatives Support Profit Margins
Operational cost management, coupled with strategic initiatives, strengthened margins. During the quarter, capital expenditure totaled ₹3,135 crore, with H1 FY26 totaling ₹6,535 crore toward a full-year guidance of ₹20,000 crore.
JSW Steel also advanced green projects, including a 25 MW electrolyser for hydrogen production, supporting sustainability goals and enhancing long-term profitability. These steps further contributed to the strong JSW Steel Q2 profit performance.
Financial Health and Strategic Expansion Underpin Q2 Profit
Net debt moderated to ₹79,153 crore, yielding a net debt-to-EBITDA ratio of 2.97x, reflecting improved financial stability. The board approved mergers of subsidiaries, including Amba River Coke, and consolidated US operations under JSW Steel (Netherlands) BV, streamlining the global footprint.
These strategic moves, combined with operational efficiency, reinforced investor confidence and underpinned the JSW Steel Q2 profit surge.
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Analyst Insights and FY26 Outlook
Experts hailed the results, noting JSW Steel’s execution, volume-led growth, and cost discipline. Capacity expansion plans aim to raise output from 27.5 MT to 50 MT by FY30, positioning the company as a market leader.
With favorable policy tailwinds in the auto and consumer sectors, management expects strong momentum in H2 FY26. Shares closed 1.2% higher on BSE, signaling confidence in the JSW Steel Q2 profit trajectory.
Key Takeaways:
- JSW Steel Q2 profit surged 270% YoY to ₹1,623 crore.
- Crude steel production rose 17% YoY to 7.90 MT; sales increased 20% to 7.34 MT.
- Domestic sales up 14%; exports more than doubled.
- EBITDA margins expanded to 17.4%; EBITDA per tonne rose 13%.
- Capital expenditure focused on green initiatives and capacity expansion.
- Net debt reduced; net debt-to-EBITDA ratio of 2.97x highlights strong financial health.
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