Why Did JSW Steel Deliver Record Output and Strong Financial Performance in Q2 FY26?
JSW Steel reported its best-ever operational quarter in Q2 FY26, with record steel production and sales volumes. The company’s strong execution and expanding product mix helped it outperform industry demand growth, while ongoing efficiency projects and green initiatives reinforced long-term sustainability targets.
During the quarter, crude steel production reached 7.9 million tonnes — the highest ever, up 17% year-on-year and 9% sequentially. Steel sales stood at 7.34 million tonnes, representing a 20% YoY increase and the strongest Q2 performance on record. Domestic sales surged 14% YoY, significantly outpacing India’s 8.9% demand growth, with the value-added and special products segment contributing 64% of total volumes.
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JSW Steel’s consolidated revenue stood at ₹45,152 crore, while EBITDA came in at ₹7,849 crore, translating to ₹10,710 per tonne and an impressive 17.4% margin. Net profit rose sharply to ₹1,646 crore compared to ₹404 crore a year earlier. The company maintained its balance sheet strength, reducing net debt to ₹79,153 crore and maintaining a net debt-to-EBITDA ratio of 2.97x. Capex spend for the quarter was ₹3,135 crore, with a total of ₹6,535 crore in the first half of FY26.
On the demand front, JSW Steel highlighted a positive outlook for H2 FY26, supported by festive spending and potential rate cuts. Steel demand grew 8.9% YoY during Q2, while India’s GDP forecast was revised upward to 6.8% by the Reserve Bank of India. Although realizations declined around 5% sequentially due to seasonal factors, management expects pricing recovery in November and December.
Input cost trends remain favorable with easing iron ore prices and declining global coking coal rates. The company welcomed DGTR’s recommendation of a three-year safeguard duty and potential anti-dumping measures on imports of hot rolled coils and electrical steels from Vietnam and China. These steps are expected to support domestic industry margins.
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JSW Steel reaffirmed its ₹69,000 crore capex plan over the next 3.5 years, averaging around ₹20,000 crore annually. The Vijayanagar 5 MTPA expansion has been commissioned, while the relining of Blast Furnace 3 to 4.5 MTPA is expected by February 2026. Other expansions include Dolvi Phase 3 to 15 MTPA by September 2027 and a 1 MTPA EAF plant in Andhra Pradesh by FY29. CRGO steel projects at Nashik and Vijayanagar are progressing well, with the company’s total capacity expected to reach 41.9 MTPA by FY27 and 42.9 MTPA by FY29.
On sustainability, JSW Steel continues to lead industry transformation with India’s first 25 MW green hydrogen electrolyzer, capable of producing 3,800 tons per year. It has already commissioned 885 MW of renewable energy capacity and targets 2.5 GW by FY29. The JSW1 platform achieved a 43% YoY rise in GMV to ₹3,950 crore and facilitated ₹1,100 crore in credit disbursals.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that JSW Steel’s Q2 FY26 concall reinforces its leadership in operational performance, cost management, and renewable transition. With strong capex discipline, declining debt, and improving demand outlook, the company is well-positioned for sustained earnings growth in FY27.
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Related Queries on Steel Sector Outlook
- How Did JSW Steel Achieve Record Production in Q2 FY26?
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- How Will the Renewable Push Impact JSW Steel’s Cost Efficiency?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
