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JSW Steel's profit more than triples to ₹5,359 crore as it plans two Odisha expansions
Record sales of 7.46 million tonnes lifted the September-quarter result, and the board approved a 5 million tonne expansion with Japan's JFE and a ₹16,150 crore second phase at JSW Utkal.
Key points
- JSW Steel's consolidated net profit rose to ₹5,359 crore from ₹1,646 crore a year earlier.
- The board approved a 5 MTPA expansion at the Sambalpur plant it runs with JFE Steel, with ₹7,500 crore of equity split equally.
- A second phase at JSW Utkal in Odisha, costing ₹16,150 crore, is to add 5 MTPA of steelmaking capacity by Q1 FY31.
JSW Steel’s profit more than tripled in the July-September quarter as it sold a record amount of steel, and its board used the same day to approve two big capacity additions in Odisha.
The company’s consolidated net profit rose to ₹5,359 crore from ₹1,646 crore a year earlier, according to results filed on Friday. Revenue from operations grew 20.7% to ₹54,486 crore and EBITDA, or operating profit, rose 42.2% to ₹10,120 crore. The operating margin widened to 18.6% from 15.8%.
All four numbers came in above the estimates of analysts polled by a business channel, which had expected a profit of about ₹4,752 crore. The shares still fell 2.6% to ₹1,187 on Friday, a day when metal stocks were among the worst hit in a broad market sell-off.
Record volumes
Volumes did most of the work. Consolidated crude steel production rose 5% from a year earlier to a record 7.27 million tonnes, and sales of saleable steel climbed 13% to a record 7.46 million tonnes. Domestic sales reached 6.29 million tonnes, also a record, and exports were 0.98 million tonnes.
Sales to carmakers and other automotive customers were the highest ever, up 36% from a year earlier. The company said its operating profit rose on “higher volumes, partly offset by higher coking coal prices and lower realisations.”
Debt came down. Net debt fell by about ₹1,675 crore during the quarter to roughly ₹44,482 crore, and the ratio of net debt to EBITDA eased to 1.28 times from 1.46 times.
Two Odisha projects
The board approved a 5 million tonnes a year (MTPA) expansion at JSW JFE Steel, the 50:50 venture with Japan’s JFE Steel Corporation. Its integrated plant at Sambalpur, now 4.5 MTPA and running close to full capacity, would grow to 9.5 MTPA.
“The board and our joint venture partner, JFE Steel, have approved a 5 MTPA expansion at JSW JFE Steel Ltd,” JSW Steel said. The equity needed is about ₹7,500 crore, with each partner putting in ₹3,750 crore. Work is expected to begin in April 2027, subject to statutory and environmental approvals, and to take about three and a half years, with commissioning planned by FY31.
Separately, the board cleared a second phase at JSW Utkal in Odisha with a capital outlay of ₹16,150 crore. It would add 5 MTPA of steelmaking capacity, with commissioning targeted for the first quarter of FY31.
Other approvals included a 1.8 MTPA cold rolling mill complex and a 1.2 MTPA metal coating line at Vasind, targeted for Q2 FY30, an 8 MTPA pellet plant at Vijayanagar, and expansion of the MdR coking coal mine in Mozambique, bought in March 2026, to 9 MTPA, with production from 2028.
What happens next
The Sambalpur plan was among the projects JSW chairman Sajjan Jindal briefed Odisha Chief Minister Mohan Charan Majhi on during the state’s investment roadshow in Mumbai this week. The shares will trade on the results for a full session when markets reopen on Monday.