JSW Steel October-December Profit at ₹24.1 Billion; Approves ₹316 Billion Odisha Steel Plant

JSW Steel Limited reported a consolidated net profit of ₹24.1 billion for the quarter ended December, supported by record sales volumes and a one-time deferred tax asset recognition. Revenue from operations stood at ₹459.9 billion for the review period, the company said in a press release to exchanges. 

The Mumbai-headquartered steelmaker reported an Operating EBITDA of ₹65.0 billion. Adjusted EBITDA, which excludes unrealised forex gains and losses on long-term borrowings and intercompany receivables, stood at ₹66.2 billion, reflecting a margin of 14.4%. In its filing, the company stated that Adjusted EBITDA rose 22% year-on-year, primarily driven by higher volumes and reduced coking coal and power costs, though these were partially offset by lower realisations.

The profit after tax of ₹24.1 billion included the recognition of deferred tax assets (net) amounting to ₹14.4 billion. The company stated this recognition stems from brought-forward unabsorbed depreciation in Bhushan Power & Steel Limited (BPSL), which it anticipates recovering against likely capital gains from the slump sale of BPSL’s steel business undertaking.

Operational Metrics
Consolidated crude steel production stood at 7.48 million tonnes, a 6% increase year-on-year. Sequential production declined 5% due to the scheduled shutdown of Blast Furnace 3 at Vijayanagar for capacity upgradation from 3.0 MTPA to 4.5 MTPA. The furnace is expected to be commissioned by the end of the fourth quarter of 2025-26.

Saleable steel sales reached a record 7.64 million tonnes, rising 14% year-on-year. Domestic sales stood at 6.59 million tonnes, up 10%, while exports surged 53% to 0.84 million tonnes. Retail sales volumes recorded 12% growth.

Balance Sheet and Capex
Net debt stood at ₹803.5 billion as of December 31, 2025. The Net Debt to Equity ratio was 0.92x, while Net Debt to EBITDA stood at 2.91x. Consolidated capital expenditure for the quarter was ₹34.8 billion, taking the nine-month total to ₹100.2 billion. The company maintained a full-year 2025-26 capex guidance of ₹150 billion–₹160 billion.

Project Pipeline
The Board approved a 5 MTPA steel plant in Jagatsinghpur, Odisha, under subsidiary JSW Utkal Steel Ltd, with a capex of ₹316 billion slated for commissioning by 2029-30. Two 8 MTPA pellet plants at the site are expected by 2027-28, and a slurry pipeline by 2026-27. The Dolvi Phase-III expansion to 15 MTPA is on track for September 2027. The Board also approved a tinplate and continuous galvanising line at Rajpura, Punjab.

Exceptional Items
Following the notification of new Labour Codes on November 21, 2025, the Group recognised a financial impact of ₹5.3 billion towards increased employee benefit obligations for the quarter.

Macro Outlook and Board
The company stated that the IMF raised its 2026 global growth forecast to 3.3%. In India, advance estimates peg 2025-26 GDP growth at 7.4%. The Indian government recently imposed anti-dumping duties on HRC from Vietnam and CRNO electrical steel from China.