JSW Steel — Q3 FY26 earnings call

Call held 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

  • 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

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

Key financials

  1. Revenue ₹45,991 Cr
  2. Adjusted EBITDA ₹6,620 Cr
  3. EBITDA per Tonne ₹8,700/tonne
  4. PAT ₹2,410 Cr
  5. Crude Steel Production 7.48 million tonnes +6%YoY
  6. Steel Sales 7.64 million tonnes +14%YoY
  7. Net Debt ₹80,347 Cr
  8. Net Debt/EBITDA 2.91×

What they filed

Q1 FY27: revenue up 9.8%, net profit up 112.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue39,684 41,378 44,819 43,147 45,152 +14%45,991 +11%51,180 +14%47,364 +10%
EBITDA5,375 5,579 6,135 7,476 7,027 +31%6,379 +14%8,464 +38%9,285 +24%
Net profit404 719 1,501 2,209 1,646 +307%2,410 +235%19,243 +1182%4,696 +113%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Indian Operations
    ₹6,522 Cr EBITDA₹8,800/tonne EBITDA/tonne15% Margin
  • US Operations
    $3.1 Mn EBITDA
  • Italian Operations
    5.3 million eur EBITDA

Guidance & targets

Volume

  • FY26 Production Guidance Volume · FY26 · High confidence 30.5 million tonnes
    we expect to broadly achieve our full year guidance of 30.5 million tonnes for production

    — Jayant Acharya

  • FY26 Sales Guidance Volume · FY26 · High confidence 29.2 million tonnes
    29.2 million tonnes for sales

    — Jayant Acharya

Capex

  • FY26 Capex Capex · FY26 · High confidence Rs.15,000-16,000 crores
    we expect the total capex to be in the range of Rs.15,000 to 16,000 crores

    — Jayant Acharya

Cost

  • Q4 Coking Coal Cost Change Cost · Q4 FY26 · High confidence +$15-20/tonne
    We expect the coking coal cost to increase between USD15 to USD20

    — Jayant Acharya

Capacity

  • India Capacity by FY31 Capacity · FY31 · High confidence 50+ million tonnes
    We are well on track to reach 50 million tonnes in India by FY31

    — Jayant Acharya

Demand

  • India Steel Demand Growth FY27 Demand · FY27 · Medium confidence 7-9%
    demand is projected to grow in the range of 7% to 9%

    — Jayant Acharya

Risks & concerns

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

    high

    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

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

    medium

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

    Analyst downplayed

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

    medium

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

    Management acknowledged

  • CBAM impact on European exports still uncertain

    low

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

    Analyst downplayed

Areas of evasion (1)

  • CBAM detailed calculations not shared

Q&A highlights

2 direct
BPSL JV timeline and cash flow impact Direct
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

Steel price recovery trajectory in Q4 Direct
HRC market dropped QoQ by about Rs.2,200...Our drop was close to Rs.1,400 odd per tonne on the overall mix...Rs.1,500 in December and Rs.2,000 in January recovery

Quantifies Q3 margin pressure and Q4 recovery - net Rs.3,500 price recovery vs Rs.1,400 Q3 decline signals margin expansion

Asked by Rashi Chopra

CBAM impact assessment for European exports Partial
Europe as a percentage of our total exports is going down...exposure is only about 2-3%...We will understand the guidelines fully as and when they come

CBAM uncertainty remains but manageable given Europe is only 2-3% of total sales; plant-level emissions verification in process

Asked by Vikash Singh

1 min read 4 chapters

Detailed narrative

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.

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.

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.

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.

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