JSW Steel Q1 net doubles to ₹4,696 crore on better realisation

JSW Steel has reported that its net profit in the June quarter of FY27 more than doubled to ₹4,696 crore against ₹2,209 crore logged in the same period last year, largely due to better realisation and fall in finance cost. Revenue increased 10 per cent to ₹47,364 crore (₹43,147 crore).

The company plans to raise ₹811 crore by offloading stake in the proposed JSW One Platforms initial public offering. Promoted by the JSW Group, the B2B (business to business) platform is backed by SBI, Principal Asset Management and OneUp.

Founded in 2020, the tech-driven marketplace was valued at $1 billion during a ₹340 crore fundraising round in May last year. JSW Steel sales volume was up 4 per cent in the June quarter at 6.25 million tonnes (6.03 mt). EBITDA per tonne was up 27 per cent at ₹14,990 (₹11,783).

EBITDA increased 32 per cent to ₹9,373 crore (₹7,106 crore). Net debt on a sequential basis was down by ₹7,713 crore at ₹46,157 crore as of June-end. Of the planned capex of about ₹24,000 crore this fiscal, the company spent ₹4,869 crore in the June quarter.

Its Indian operations registered revenues of ₹42,894 crore and EBITDA of ₹9,096 crore. The company has completed the joint venture with JFE for the Bhushan Power and Steel asset, with JFE investing the second tranche of ₹7,875 crore as of June-end.

JSW Vijayanagar Metallics recorded net profit of ₹1,223 crore. It registered an EBITDA of ₹1,821 crore, mainly driven by higher sales volume as the operations ramped up and higher sales realisations. JSW Steel Coated Products’ reported net profit was ₹354 crore on a revenue of ₹9,991 crore. EBITDA increased 25 per cent to ₹698 crore, primarily due to higher sales realisations.

The company hs completed capacity expansion of blast furnace-3 to 4.5 MTPA from 3 MTPA at Vijayanagar and it was lit up in June. It has since ramped up to over 80 per cent in a few weeks and will add incremental volumes from September quarter.

JSW Steel plans to enhance capacity at planned downstream expansion by 0.44 million tonne at Vijayanagar, Khopoli and Rajpura.

At Khopoli, it has enhanced the product capability to include a wider range of high-strength, value-added coated steel products and has added rail capability to the 1 MTPA structural mill in Raigarh.

The investment cycle continues to gain traction, backed by a strong public capex pipeline and sustained activity across commercial real estate, energy, data centres, defence, and maritime sectors, said the company.