Detailed Narrative
Record Q2 Operational Performance
JSW Steel delivered highest-ever Q2 production of 7.9 MT (+17% YoY) and sales of 7.34 MT (+20% YoY) despite monsoon seasonality. JVML ramp-up contributed significantly with second converter starting in August. VASP sales hit record 4.31 MT constituting 64% of total. Domestic sales of 6.33 MT up 14% YoY, outpacing India's 8.9% demand growth.
Margin Resilience Through Product Mix
Despite declining steel prices, adjusted EBITDA/tonne remained healthy at Rs.10,701 supported by 64% VASP share, lower coking coal ($6 decline as guided), and improved operational leverage from higher volumes. Indian ops EBITDA margin at 18.1%. Energy costs lower from renewable energy commissioning of 885 MW.
Growth Strategy Acceleration
Board approved 1 MT EAF at Kadapa for structural steel by FY29 and CRGO capacity expansion at Nashik from 50K to 250K tonnes plus 100K at Vijayanagar. Rs.69,000 crore capex planned at Rs.20,000 crore/year funded through internal accruals. BF-3 shutdown for upgrade will add 1.5 MT by Feb 2026.
Raw Material Security Progress
Captive iron ore at ~30% of consumption with 22-23 MT annual availability annualized. 12 iron ore mines operating with 3 new Karnataka mines expected Q1 FY27. Goa mining at Cudnem starting Q3 FY26. Acquired 20% stake in Illawarra coking coal (Australia), increasing to 30%. Mozambique coking coal acquisition expected to close this FY.