Margins Bounce Back in Q1 FY26: Profit More Than Doubles to ₹2,209 crore

In the first quarter of FY 2025–26, JSW Steel delivered a strong financial performance, with its consolidated net profit rising to ₹2,209 crore, more than doubling from ₹867 crore recorded in the same quarter of the previous year. This growth was primarily attributed to improved operating margins, higher steel volumes, and stable pricing in domestic markets. Despite relatively flat revenue at ₹43,147 crore, the company's ability to control input costs and optimize production processes resulted in a significant improvement in profitability. The performance demonstrated JSW Steel’s resilience and adaptability in managing cost cycles while responding to market demand.

During this quarter, the company's expenses fell by about 3.3 percent year-on-year, which contributed to better operating efficiency. The consolidated EBITDA stood at ₹7,595 crore, reflecting a healthy margin of 17.6 percent. The company benefited from lower raw material prices, particularly for imported coking coal and iron ore, and maintained steady supply from its domestic mines. Domestic steel demand continued to be strong, particularly from construction, automotive, and capital goods sectors, enabling JSW Steel to operate most of its facilities at higher utilization levels. Improved logistics and inventory management also played a role in optimizing working capital during the quarter.

Looking forward, JSW Steel plans to maintain this momentum through strategic investments and capacity expansions. It continues to focus on backward integration projects to ensure cost stability and long-term supply security for critical inputs. Additionally, the company is advancing its environmental initiatives under the GreenEdge program, which includes energy-efficient production techniques and the use of renewable energy in manufacturing. With India’s steel demand expected to remain buoyant due to infrastructure spending and industrial recovery, JSW Steel aims to sustain its strong financial performance in the upcoming quarters while progressing toward its long-term capacity and sustainability goals.

Sources:TheFinancialExpress