JSW Steel Q2 Profit Soars 307% to ₹1,646 Crore in FY26

Introduction

JSW Steel, a leading player in the Indian steel industry, announced its financial results for the second quarter of fiscal year 2025-26, ending September 30, 2025. The company reported a significant surge in profitability, with consolidated net profit jumping over 300% compared to the same period last year. This robust performance was primarily driven by record steel production and higher sales volumes, underscoring the company's operational strength amidst a dynamic market environment.

Stellar Financial Performance

For Q2 FY26, JSW Steel posted a consolidated net profit of ₹1,646 crore, a remarkable 307% increase from the ₹404 crore reported in Q2 FY25. The company's revenue from operations grew by 14% year-on-year, reaching ₹45,152 crore compared to ₹39,684 crore in the corresponding quarter of the previous year. The strong top-line growth and improved profitability highlight the company's ability to navigate market conditions effectively.

EBITDA and Margins

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also showed substantial growth. The adjusted EBITDA for the quarter stood at ₹7,849 crore, marking a 39% year-on-year increase. This improvement was attributed to higher sales volumes and better cost management, particularly lower coking coal costs. The reported EBITDA was ₹7,115 crore, up 31% from the previous year. The company's basic Earnings Per Share (EPS) for the quarter improved significantly to ₹6.66.

Operational Excellence and Production Records

JSW Steel's strong financial results were supported by record-breaking operational performance. The company achieved its highest-ever quarterly crude steel production at its Indian operations, which stood at 7.66 million tonnes, a 16% increase year-on-year. Consolidated crude steel production for the quarter was 7.90 million tonnes. Saleable steel sales also saw a healthy increase, reaching 7.34 million tonnes. This growth in production and sales volumes was a key contributor to the quarter's positive outcome.

Key Financial Highlights (Consolidated)

Debt Position and Capital Expenditure

As of September 30, 2025, JSW Steel maintained a controlled leverage position. The company's net debt to equity ratio was reported at 0.93x, while the net debt to EBITDA ratio stood at 2.97x. JSW Steel continued its strategic capital expenditure, investing ₹3,135 crore during the quarter. The company is progressing with its expansion projects at Vijayanagar and Dolvi, which are aimed at enhancing its production capacity and strengthening its market leadership.

Management Outlook

While the company did not issue a formal statement in the provided text, the results reflect a focus on operational efficiency and volume growth. The record production levels indicate that management's strategic initiatives to enhance capacity and control costs are yielding positive results. The company continues to navigate challenges such as fluctuating global steel prices while focusing on its long-term growth trajectory through planned capacity expansions.

Market Reaction

Following the announcement of the Q2 results on October 17, 2025, the market showed a subdued reaction. The JSW Steel share price on the NSE was trading around ₹1,166, down approximately 0.52%. This muted response could reflect broader market sentiment or that the strong results were already factored into the stock's price.

Conclusion

JSW Steel's Q2 FY26 results demonstrate a period of strong operational and financial execution. The significant increase in net profit, backed by record production and healthy revenue growth, positions the company well for the future. With major expansion projects underway, JSW Steel is focused on scaling its operations and solidifying its position as a dominant force in the steel sector. Investors will continue to monitor the company's debt levels and its ability to sustain margins in a competitive global market.