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    JSW Steel

    JSWSTEELGood
    Metals & Mining·23 Jan 2026
    Management Summary

    JSW Steel delivered best-ever quarterly sales of 7.64 MT in Q3 FY26 despite BF-3 shutdown for capacity enhancement. The highlight was the strategic JFE Steel JV for BPSL at Rs.53,000 crore EV, enabling Rs.37,000 crore deleveraging. Board approved a 5 MT greenfield plant in Odisha at Rs.31,600 crores. Steel prices were at multi-year lows during the quarter but are recovering Rs.3,500+ in December-January. Management guided Rs.1 lakh crore capex over 4-5 years targeting 56 MT total capacity by FY31.

    Highlights

    8

    • Best ever consolidated and India sales at 7.64 MT, up 14% YoY; domestic sales up 10% YoY

    • Consolidated crude steel production of 7.48 MT, up 6% YoY; Indian ops at 7.28 MT, up 7% YoY

    • EBITDA of Rs.6,620 crores (adjusted); EBITDA/tonne at Rs.8,700; margin 14.4%

    • JFE Steel JV for BPSL announced - Rs.31,500 crores equity value, Rs.37,000 crores deleveraging

    • Board approved 5 MT greenfield plant at Jagatsinghpur, Odisha - Rs.31,600 crores capex, commissioning by FY30

    • Value-added product sales highest ever at 4.54 MT (61% of total), up 16% YoY

    • Net debt at Rs.80,347 crores; net debt/EBITDA at 2.91x; net debt/equity at 0.92x

    • Q4 outlook: steel prices recovering Rs.3,500+; coking coal cost up $15-20; strong seasonal demand

    Concerns

    1

    • Steel prices at multi-year lows in Q3 impacting realizations

    What Changed2

    vs Q4 FY26

    Guidance items30 → 6 (-24)Q&A highlights8 → 3 (-5)

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue₹45,991 Cr
    2. 02Adjusted EBITDA₹6,620 Cr
    3. 03EBITDA per Tonne8,700 Rs/tonne
    4. 04PAT₹2,410 Cr
    5. 05Crude Steel Production7.48 MT+6%YoY

    Segment breakdown

    Indian Operations
    ₹6,522 Cr EBITDA8,800 Rs/tonne EBITDA/tonne15% Margin
    US Operations
    3.1 Mn EBITDA
    Italian Operations
    5.3 Mn EBITDA
    List

    Guidance & targets

    6
    CategoryTargetPriority
    Volume
    FY26 Production Guidance
    30.5 million tonnes
    		High
    Volume
    FY26 Sales Guidance
    29.2 million tonnes
    		High
    Capex
    FY26 Capex
    Rs.15,000-16,000 crores
    		High
    Cost
    Q4 Coking Coal Cost Change
    +$15-20/tonne
    		High
    Capacity
    India Capacity by FY31
    50+ million tonnes
    		High
    Demand
    India Steel Demand Growth FY27
    7-9%
    		Medium

    Risks & concerns

    5
    RiskSeverity

    Steel prices at multi-year lows in Q3 impacting realizations

    HRC prices dropped Rs.2,200 QoQ; JSW mitigated to Rs.1,400 drop through value-added mix; prices recovering Rs.3,500 in Dec-Jan — Management acknowledged

    high

    Rs.1 lakh crore capex over 4-5 years with Rs.80,000 crore net debt

    Management maintains ratios will stay under control with BPSL cash inflow and incremental EBITDA from new capacities — Analyst downplayed

    medium

    CBAM impact on European exports still uncertain

    Europe only 2-3% of total exports; India domestic demand growing fast enough to absorb production — Analyst downplayed

    low

    Chinese steel exports surged 14% to 133.5 MT keeping Asian prices subdued

    Government anti-dumping duties on HRC from Vietnam and safeguard duty helping; monitoring Chinese anti-involution measures — Management acknowledged

    medium

    Areas of Evasion(1)

    • CBAM detailed calculations not shared

    Q&A highlights

    3

    “CCI approval received...slump sale getting concluded before end of March...Rs.24,400 crores of effective cash coming in and net leverage reduction of about Rs.29,000 crores”

    Confirms near-term completion of transformative BPSL deal, significantly deleveraging balance sheet

    asked by Sumangal Nevatia

    1 min read4 chapters

    Detailed Narrative

    01

    Transformative BPSL-JFE Partnership

    JSW announced a strategic JV with JFE Steel for BPSL at Rs.53,000 crore EV. JFE takes 50% stake at Rs.31,500 crore equity value. CCI approval received; shareholder approval by early February. Phase 1 to close by March 2026 bringing Rs.24,400 crore cash and Rs.29,000 crore leverage reduction. Phase 2 (Rs.7,875 crore) expected by Q1 FY27.

    02

    Aggressive Capacity Expansion

    Board approved 5 MT greenfield at Jagatsinghpur, Odisha (Rs.31,600 crore, commissioning FY30) with expansion potential to 13.2 MT. Total Rs.1 lakh crore capex planned over 4-5 years. BF-3 upgrade at Vijayanagar on track for Q4 FY26 commissioning adding 1.5 MT. Dolvi Phase-3 (10 to 15 MT) on track for Sep 2027. Target: 56 MT total by FY31.

    03

    Record Sales Despite Price Headwinds

    Best-ever quarterly sales of 7.64 MT up 14% YoY, with domestic sales up 10% outpacing India consumption growth of 4.6%. Value-added products at record 61% of sales (67% ex-JVML). JVML plant fully ramped to 5 MT capacity. Inventory liquidated by 0.3 MT during the quarter. Auto and renewable sector deliveries at all-time highs.

    04

    Margin Outlook Improving

    Q3 EBITDA/tonne of Rs.8,700 impacted by multi-year low steel prices and BF-3 shutdown costs. Q4 outlook positive with Rs.3,500+ price recovery in Dec-Jan, though offset by $15-20 coking coal cost increase. India steel demand growing 7% in 9 months. Safeguard duty of 12% and anti-dumping duties providing domestic protection.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.