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
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. Also Read | JSW Steel sharpens expansion plan, lifts capacity target to 56 mtpa by FY31 “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. Also Read | Billionaires line up for Odisha's biggest untapped bauxite block 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.
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