JSW Steel Q1 profit, revenue beat estimates on higher prices, strong demand

JSW Steel, India’s largest steelmaker by capacity, more than doubled its June-quarter profit and beat analyst expectations as higher steel prices and strong domestic demand boosted earnings.

The Sajjan Jindal-led company reported a consolidated net profit of ₹4,651 crore for the first quarter of FY27, up from ₹2,184 crore a year earlier, according to an exchange filing on Friday. The profit exceeded the ₹3,199-crore average estimate of seven analysts polled by Bloomberg.

Stronger steel realisations and resilient domestic demand helped offset higher input costs during the quarter, which rose amid the West Asia conflict.

Despite a strong quarter, the company said geopolitical tensions, particularly in West Asia, remain a key monitorable.

“While the adverse impact of the conflict on supply-side disruptions and elevated energy costs started to moderate in end-June, the recent escalation and development remain key monitorables. Looking ahead, reconstruction-related demand could provide an additional growth impetus,” Jayant Acharya, joint managing director and chief executive officer (CEO) of JSW Steel, said in a post-earnings interaction with analysts.

The Mumbai-based steelmaker reported a 10% year-on-year rise in consolidated revenue to ₹47,364 crore in the April-June period, beating the ₹45,109-crore consensus estimate of 23 analysts polled by Bloomberg.

Acharya said that volumes will rise in the September quarter as production ramps up at its Vijayanagar blast furnace 3 and Ohio, US, operations. However, prices of these key raw materials are expected to ease only towards the end of Q2 and in Q3, with any benefit to margins likely to emerge during that period.

Higher steel prices have helped offset elevated iron ore and coking coal costs during the June quarter, supporting revenue and Ebitda (earnings before interest, taxes, depreciation, and amortization) growth. Looking ahead, the September quarter is a seasonally weak one due to monsoons, and earnings are likely to come under pressure from higher input costs and softer steel prices. However, incremental volumes from capacity ramp-ups are expected to partly cushion the impact, said Satyadeep Jain, metals and mining analyst at Ambit Capital

JSW Steel said India's growth momentum remains intact, underpinned by strong domestic demand and continued government-led infrastructure spending despite global geopolitical uncertainties. It expects sustained demand from sectors including automobiles, commercial real estate, energy, data centres, defence and maritime.

Earnings before interest, taxes, depreciation, and amortization in the first quarter rose 23% year-on-year to ₹9,383 crore.

Domestic steel demand is expected to grow at a healthy rate of 7% to 9%, providing a strong base for future capacity growth, according to Acharya. Demand is expected to be supported by public and private capex, manufacturing and the auto sector.

Acharya also flagged that, due to the West Asia conflict, cargoes originally meant for the region have landed in India, pushing up imports. Imports from countries such as Japan with which India has free trade agreements have also increased.

“With the imposition of safeguard duty on December 26, India had become a net steel exporter after two years in FY26. However, in Q1, India has become a net importer of steel once again,” said Acharya, adding that imports grew 22% quarter-on-quarter and exports fell about 16%.

Last month, New Delhi initiated an anti-dumping investigation into imports of hot-rolled flat steel products from China, Japan and Russia after leading domestic producers alleged that low-priced imports had caused material injury to the local industry and threatened further damage.

On expansion projects, the company said the upgrade of blast furnace-3 at its Vijayanagar plant, which increased capacity from 3 million tonnes per annum (mtpa) to 4.5 mtpa, was completed in June and has already ramped up to more than 80% capacity. Additional volumes expected from the September quarter, the steelmaker said.

The Dolvi Phase-III expansion in Maharashtra from 10 mtpa to 15 mtpa remains on track for completion by September 2027, while the Utkal project in Odisha and the Kadapa electric arc furnace project in Andhra Pradesh are progressing as planned.

JSW Steel also reaffirmed its FY27 capital expenditure guidance of ₹22,000-24,000 crore. It incurred a capex of ₹4,869 crore during the June quarter, primarily towards ongoing expansion projects at Vijayanagar, Dolvi, Utkal and Kadapa.