JSW Steel Reports Three-Fold Q2 Net Profit Increase, Outlines Major Capacity Expansions

JSW Steel has reported a three-fold increase in its net profit attributable to shareholders, reaching ₹5,279 crore for the quarter ending September, compared to ₹1,623 crore during the same period last year. The growth was supported by stronger realisations and higher sales volumes.

The company's quarterly revenue grew by 21 percent to ₹53,697 crore, up from ₹44,560 crore a year earlier. EBITDA increased by 39 percent to ₹9,941 crore. Total production for the quarter rose 5 percent to 7.27 million tonnes (mt), while sales jumped 13 percent to 7.46 mt. EBITDA per tonne saw a 24 percent year-on-year increase, reaching ₹13,329.

In domestic operations, Indian sales increased by 14 percent to 7.27 mt and production rose 5 percent to 7.07 mt. Domestic revenue jumped 30 percent to ₹50,188 crore, while EBITDA rose 40 percent to ₹9,636 crore.

Alongside the financial results, JSW Steel announced several strategic capital expenditure initiatives. The company spent ₹11,136 crore on capex in the first half of the fiscal year and plans to invest an additional ₹12,864 crore in the second half, targeting a total capex of ₹22,000 to ₹24,000 crore for FY27.

Key expansion plans include a joint venture with JFE Steel to increase capacity at the Sambalpur plant in Odisha by 5 mtpa from 4.5 mtpa, backed by a ₹11,250 crore investment. Both companies will invest ₹3,750 crore each to meet the equity requirement of ₹7,500 crore, with the project slated to begin next April and complete in 3.5 years.

Additionally, JSW Steel plans to double the under-construction JSW Utkal capacity in Odisha to 10 mtpa with an additional outlay of ₹16,150 crore, expecting completion by the first quarter of FY31. Other approved projects include an 8 mtpa pellet plant at JVML-Vijayanagar, an expansion at Vasind featuring a 1.8 mtpa Cold Rolling Mill complex and a 1.2 mtpa metal coating facility by Q2 FY30, and an expansion of coking coal mining capacity in Mozambique to 9 mtpa by 2028.

The company also intends to establish a wholly owned subsidiary in the UAE for overseas investment, trading, and business development, alongside setting up its first 0.5 mtpa recycling facility at Khopoli and mechanised scrap processing centres across various locations.

Subsidiary performances for the period showed JSW Vijayanagar Metallics posting a net profit of ₹1,000 crore on revenue of ₹7,582 crore with an EBITDA of ₹1,630 crore. JSW Steel Coated Products recorded a net profit of ₹352 crore on revenue of ₹11,344 crore, with a production volume of 1.19 mt and sales volume of 1.24 mt.

"JSW Steel's strong second-quarter financial performance demonstrates healthy demand and operational efficiency. By committing significant capital expenditure toward capacity expansion, raw material security, and sustainability initiatives like scrap processing, the company is effectively positioning itself for long-term growth in core industrial sectors. These strategic investments highlight a disciplined approach to scaling operations and managing market cycles." — Dr. Shishir Gupta, Founder & CEO, StartupLanes