JSW Steel Posts Strong Q1 FY26 Results, Stays Wary Amid Import Threats

For the FY26 first quarter, JSW Steel produced a fine set of numbers with net profit at ₹2,209 crore-more than double from ₹867 crore a year ago, on the back of better steel prices, enhanced production, and lower costs of coking coal. The company is still cautious because of seasonal weakness in demand on account of the monsoon and imminent cheap steel imports from China.

Comparison of the April-June revenue at ₹43,147 crore shows it just barely beating Bloomberg’s analyst estimate of ₹42,790 crore. EBITDA was up 37% year-on-year to ₹7,576 crore, aided by lower raw material costs and reduced outflow on mining royalty. Production volumes were up 14% at 7.26 million tonnes, while sales volumes grew by 9% to 6.69 million tonnes.

JSW attributed the improved margin environment partly to the government’s 12% safeguard duty on steel imports, which took effect in April to protect local producers. However, analysts note this may offer only temporary relief.

“The rise in prices may not be sustained unless further policy action is taken,” said Suman Kumar of Dolat Capital.

Despite ongoing global tariff uncertainties and China’s excess steel output flooding markets, JSW maintained its FY26 guidance: 30.5 million tonnes of production and 29.2 million tonnes in sales. Capital expenditure for the quarter stood at ₹3,400 crore out of the planned ₹20,000 crore for the full year.

The company also flagged the commissioning of a second converter at JSW Vijayanagar Metallics, which is expected to further cut production costs. Still, the monsoon season could dampen sales in Q2.

JSW Steel confirmed it had regained control of Bhushan Power and Steel Ltd as of June 30 and continues to consolidate its financials, despite the Supreme Court’s scrapping of the resolution plan. A review petition is underway.

Shares of JSW Steel closed marginally lower on Friday at ₹1,034.40. The stock is up over 14% this year, outperforming the Sensex’s 4.14% rise.