Revenue from operation rose 0.47% year on year to ₹ 43,147 crore in the quarter ended 30 June 2025.

Profit before tax stood at ₹ 3,072 crore in Q1 FY26, zoomed 122.60% as against ₹ 1,380 crore in Q1 FY25.

The company's operating EBITDA of ₹ 7,576 crore, with an EBITDA margin of 17.6% during the quarter. The EBITDA increased by 37% YoY, driven primarily by higher volumes and lower coking coal costs.

Consolidated crude steel production for the quarter stood at 7.26 million tonnes, registering a 14% year-on-year (YoY) increase. Capacity utilisation at the Indian operations was at 87% during the quarter, compared to 93% in Q4 FY25, primarily impacted by planned maintenance shutdowns.

Steel sales for the quarter stood at 6.69 million tonnes, marking a 9% year-on-year (YoY) growth. Both institutional and retail sales volumes rose by 12% YoY. Domestic sales came in at 5.96 million tonnes, also up 12% YoY. However, exports declined 20% YoY, accounting for 7% of sales from the Indian operations in Q1 FY26.

The company's net gearing (net debt-to-equity ratio) stood at 0.95x at the end of the quarter, compared to 0.94x at the end of Q4 FY25. Net debt-to-EBITDA improved to 3.20x, from 3.34x in the previous quarter. Net debt as of 30 June 2025 stood at ₹ 79,850 crore, up by ₹ 3,287 crore from 31 March 2025, primarily due to increased investment in working capital.

Crude steel production at the Indian operations for the quarter stood at 7.02 million tonnes, registering a 15% year-on-year (YoY) increase. Steel sales during the same period were at 6.43 million tonnes, marking a 9% YoY growth.

During the quarter, Bhushan Power & Steel (BPSL) wholly owned subsidiary reported crude steel production of 0.88 million tonnes and sales volume of 0.78 million tonnes. Revenue from operations stood at ₹ 4,998 crore, while operating EBITDA came in at ₹ 760 crore, up 13% year-on-year (YoY), primarily driven by higher volumes and lower coking coal costs. Profit after tax (PAT) for the quarter stood at ₹ 331 crore.

On its outlook, the company stated economy has shown resilience despite ongoing geopolitical tensions and tariff-related disruptions. However, the World Bank revised its global growth forecast downward to 2.9% in June 2025, from 3.2% in January, indicating a more cautious outlook. In the U.S., economic growth remains strong with inflation under control, but tariff uncertainty and a gradually easing labour market have made the Federal Reserve cautious on rate cuts.

Weak consumer sentiment continues to weigh on the overall outlook. In China, the interim trade deal with the U.S. has helped stabilise economic sentiment. Consumption recovery, particularly in the auto sector, is being supported by government subsidies. While manufacturing and infrastructure investment are growing, the real estate sector remains subdued. However, capacity rationalisation across sectors is emerging as a long-term positive. In the Eurozone, inflation has neared target levels, allowing the ECB to initiate sharp rate cuts. Manufacturing is recovering, and increased medium-term spending on defence and infrastructure is expected to support further growth.

India continues to stand out as a bright spot in the global economy, with the RBI maintaining its GDP growth forecast at 6.5% for FY26, unchanged from FY25. Inflation has remained benign, enabling the central bank to front-load rate cuts in the first half of 2025. The rural economy has been performing well and is likely to gain further momentum from favourable kharif sowing.

Urban demand, particularly in residential real estate, is being bolstered by lower interest rates, adequate liquidity, and tax incentives announced in the recent budget. Government capital expenditure remains robust, with a budgeted outlay of ₹ 11.2 trillion for FY26 and strong spending trends in April'May 2025.

While domestic auto sales (excluding tractors) have been muted, production has remained resilient, driven by healthy exports. Overall, India's macroeconomic fundamentals remain solid, supported by low inflation, strong foreign exchange reserves, and continued fiscal consolidation, positioning the economy well for sustained growth despite global headwinds.

Meanwhile, the company has entered into a share purchase agreement (SPA) to acquire 100% equity interest in Saffron for an enterprise value of ₹ 679.34 crore.

JSW Steel is the flagship business of the diversified, US$ 23 billion JSW Group. As one of India's leading business houses, JSW Group also has interests in energy, infrastructure, cement, paints, realty, e-platforms, mobility, defence, sports, and venture capital.

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