JSW Steel Q1 FY27- PAT Rises to Rs. 4,696 Crore, Capex of Rs. 22,000-24,000 Crore Planned for FY27

Published at : Aug 31, 2026 07:18 AM (IST)

Total Views : 130

JSW Steel Q1 FY27- PAT Rises to Rs. 4,696 Crore, Capex of Rs. 22,000-24,000 Crore Planned for FY27

- JSW Steel Reports Strong Q1 FY27; Capacity Expansion, Green Steel and Demand Growth Strengthen Outlook

- Company expects India's steel demand to grow 7-9% in FY27, ramps up BF-3 operations, expands raw material security and downstream capacities

The Print Times

August 5, 2026:

JSW Steel Limited delivered a strong financial and operational performance in the first quarter of FY27, supported by robust domestic demand, improved capacity utilisation and continued progress across its expansion and sustainability initiatives.

Speaking during the Q1 FY27 Earnings Conference Call held on July 17, 2026, Mr. Jayant Acharya, Joint Managing Director & CEO, JSW Steel Limited, said that India's steel consumption grew 8.3% during the first quarter, reflecting continued strength in domestic demand. However, after becoming a net steel exporter in FY26 following the imposition of safeguard duty in December 2025, India reverted to being a net steel importer in Q1 FY27, with imports increasing 22% quarter-on-quarter while exports declined 16%.

Looking ahead, Mr. Acharya said domestic steel demand is expected to grow 7% to 9% in FY27, creating a strong foundation for future capacity expansion. He added that China's steel production declined 3.9% during January-May, while steel consumption fell 4%, although Chinese steel exports continued to remain at elevated levels despite moderating during the early part of the year.

On the sustainability front, the company reported significant progress under its flagship decarbonisation initiative, Project SEED, which has achieved a cumulative reduction of approximately 5 million tonnes of CO₂ emissions since 2022. Scrap steel utilisation increased 16% year-on-year during the quarter as part of the company's decarbonisation roadmap.

JSW Steel also strengthened its low-carbon product portfolio through its GreenEdge brand, backed by a carbon bank of 1 million tonnes of CO₂ credits certified by Bureau Veritas. During the quarter, the company successfully executed its first GreenEdge export order, marking an important milestone in commercialising its low-emission steel products.

Operationally, capacity utilisation across Indian operations reached approximately 94%, excluding the BF-3 blast furnace that remained under shutdown, compared with 88% in the corresponding quarter last year.

The company reported consolidated crude steel production of 6.59 million tonnes, while production from Indian operations reached 6.35 million tonnes, registering 3% year-on-year growth. Excluding the impact of the BF-3 shutdown, consolidated production grew 15% year-on-year, driven primarily by the ramp-up of JSW Vijayanagar Metallics Limited (JVML).

Consolidated steel sales increased 4% year-on-year to 6.25 million tonnes. The company recorded its highest-ever first-quarter flat steel sales, which grew 9%, while hot rolled steel sales increased 18% year-on-year, also marking the best Q1 performance.

Demand for carbon steel long products remained relatively weak due to labour shortages arising from state elections and diesel availability issues linked to the Middle East conflict, resulting in lower sales in the longs segment.

JSW Steel's continued focus on downstream value-added products enabled Value Added and Special Products (VASP) sales to increase 8% year-on-year, accounting for 61% of total sales during the quarter.

Sales to institutional customers reached the highest-ever level for a first quarter, increasing 5% year-on-year, while retail sales experienced some pressure due to higher imports and inventory destocking by channel partners.

The company also recorded its best-ever first-quarter sales in the automobile and renewable energy sectors, with volumes increasing 18% and 25%, respectively. Strong growth was also witnessed across the MSME, construction equipment, bearings and defence sectors.

Financially, JSW Steel reported consolidated revenue of Rs. 47,364 crore during Q1 FY27. Adjusted EBITDA stood at Rs. 9,373 crore, translating into an EBITDA margin of 20%, while Profit After Tax (PAT) reached Rs. 4,696 crore.

Mr. Acharya noted that steel prices had recovered from January and strengthened further through March. During Q1 FY27, flat steel prices witnessed moderate corrections, while long steel prices saw sharper declines. Overall realisations, however, remained higher quarter-on-quarter due to price discovery achieved during the previous quarter.

On the cost front, input costs were slightly higher than management guidance owing to disruptions arising from the Middle East conflict. Coking coal prices increased by around US$17 per tonne, exceeding the earlier guidance of US$12-15 per tonne, while iron ore costs also remained elevated during the quarter.

The company's overseas operations also reported improved performance. At its Ohio Electric Arc Furnace (EAF) facility in the United States, commissioning of the Vacuum Degasser will enable production of higher-grade steels, particularly API grades. Production and sales increased significantly compared with the previous quarter following completion of planned shutdowns for caster upgrades.

The Texas Plate and Pipe Mill also reported improved operational efficiencies and stronger sales driven by robust demand. Together, JSW Steel's U.S. operations generated a combined EBITDA of US$16 million during the quarter.

The company's Italian rail mill reported improved profitability with an EBITDA of EUR 7 million, despite lower production resulting from a scheduled annual shutdown. JSW Steel also signed a programme agreement with the Italian government for the rail mill modernisation project, which includes a grant of EUR 33 million.

The company completed the second tranche of JFE's equity investment worth Rs. 7,875 crore in the JSW-JFE joint venture on June 30, 2026, thereby completing the transition process.

JSW Steel continued to strengthen its balance sheet during the quarter. The company reiterated its intention to maintain leverage below 2.5 times, despite revising its maximum leverage threshold earlier. Net debt stood at Rs. 46,157 crore, significantly lower than FY25 levels. During the quarter, the company incurred a capital expenditure of Rs. 4,900 crore and expects to invest between Rs. 22,000 crore and Rs. 24,000 crore during FY27.

Providing an update on expansion projects, Mr. Acharya said the BF-3 expansion at Vijayanagar, increasing capacity from 3 million tonnes to 4.5 million tonnes, has been completed, with the blast furnace commissioned towards the end of June. The furnace has already ramped up to around 80% capacity, and the company expects incremental production from the second quarter.

Projects at Dolvi, Utkal and the slurry pipeline continue to progress as scheduled.

The company also conducted the ground-breaking ceremony for its 1 million tonne Electric Arc Furnace (EAF) and structural steel project at Kadapa, Andhra Pradesh, with commissioning targeted for FY29.

JSW Steel announced additional downstream investments, including 0.44 million tonnes of capacity across Vijayanagar, Khopoli and Rajpura. The Khopoli facility will also expand its capability to manufacture a wider range of high-strength and value-added coated steel products. Additionally, the company is adding rail manufacturing capability at its 1 million tonne structural mill at Raigarh.

On raw material security, Mr. Acharya said JSW Steel currently holds 25 iron ore mines, of which 13 are operational, while efforts are underway to operationalise the remaining mines and expand existing operations. The company also secured the Pissurlem iron ore mine in Goa during May 2026.

To strengthen coking coal security, JSW Steel has taken over the Dugda Washery from BCCL and is modernising and expanding the facility to process coal from captive mines and long-term linkages. Development work also continues on the MdR coking coal project in Mozambique and three captive coal mines in India, with major EPC contracts already awarded for the Mozambique project.

The company's digital platform, JSW One, where JSW Steel holds a 60.52% equity stake, reported strong growth during the quarter. Steel volumes increased 36% year-on-year, while Gross Merchandise Value (GMV) rose 51% to Rs. 5,919 crore. Credit offerings contributed Rs. 1,987 crore of GMV, up 49%, while the platform continued to deliver positive EBITDA.

Looking ahead, the company expects production and sales volumes to improve further in Q2, supported by the ramp-up of the Vijayanagar BF-3 and improved operations at the Ohio facility. While coking coal costs are expected to remain elevated by US$12-15 per tonne during Q2, management expects easing coal and iron ore prices to provide cost relief from the latter part of Q2 and into Q3.

Reiterating its outlook, Mr. Acharya said India is expected to add 12-13 million tonnes of incremental steel demand during FY27, driven by continued public infrastructure spending, improving private capital expenditure, manufacturing growth, a robust automobile sector and expanding rural steel consumption. He added that JSW Steel's strong balance sheet, ongoing capacity expansion and improving operational performance position the company well to support India's long-term growth story.

Published at : Aug 31, 2026 07:18 AM (IST)

Total Views : 130