JSW Steel Q1 result: Net profit jumps 158%, EBITDA rises 38%; operating profit margin improves by 470 bps

JSW Steel, the country's second largest steel producer, on Friday, July 18, reported consolidated net profit of ₹2,184 crore in the first quarter of the current financial year, marking an upside of 158% from ₹845 crore in the same period last year. The sharp jump in profit came on the back of strong domestic steel demand aided by healthy capex by the government in June quarter.

JSW Steel's revenue from operations rose 0.5% to ₹43,147 crore in June quarter as against ₹42,943 crore in the year-ago period.

The Mumbai-based company reported strong operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit jumped 38% to ₹7,576 crore from ₹5,510 crore. Its operating profit margin expanded by 470 basis points (bps) in June quarter to 17.56%.

During the quarter, consolidated crude steel production rose 14% year-on-year (YoY) to 7.26 million tonnes, while steel sales grew 9% YoY to 6.69 million tonnes, supported by a 12% YoY increase in both institutional and retail sales, the company said in a press release.

Crude steel production from JSW’s domestic operations came in at 7.02 million tonnes, up 15% YoY, while sales rose 9% to 6.43 million tonnes. Domestic sales stood at 5.96 million tonnes, registering 12% growth and accounting for the bulk of the company’s offtake, the company added.

However, exports fell 20% comprising 7% of Indian sales, reflecting subdued global demand.

Capacity utilisation at Indian plants stood at 87%, lower than 93% in Q4 FY25, due to scheduled maintenance.

JSW Steel also provided an update on the ongoing legal proceedings related to Bhushan Power & Steel. The company filed a review petition before the Supreme Court on June 25, 2025, challenging the apex court's earlier judgment dated May 2, 2025. The Committee of Creditors and the Resolution Professional have also filed separate petitions.

As per the Supreme Court’s interim order dated May 26, 2025, a status quo has been maintained regarding proceedings before the National Company Law Tribunal (NCLT) until the review petitions are decided. JSW Steel, in consultation with its legal advisers, believes it has strong grounds to pursue the matter.

JSW Steel shares ended 0.10% higher at ₹1,034 ahead of its earnings announcement.