JSW Steel shares surge 4% after net profit nearly triples in December quarter

Shares of the country's lading steel maker, JSW Steel, rose as much as 3.97% to hit an intraday high of ₹1,216.50 on the National Stock Exchange on Tuesday, January 27, after the company on Friday reported strong set of earnings in the third quarter of current financial year. On the BSE, JSW Steel shares climbed as much as 4% from its previous close of ₹1,169.35.

Billionaire Sajjan Jindal-backed company on Friday reported a consolidated net profit of ₹2,139 crore in October-December period, marking an increase of 198% from ₹717 crore in the same period last year.

JSW Steel's revenue from operations advanced 11% to ₹45,991 crore in December quarter compared with ₹41,378 crore, in the corresponding period last year.

JSW Steel reported stable operational performance as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also known as operating profit advanced 16% to ₹6,496 crore and its EBITDA margin improved by 60 basis points to 14.12%.

During the quarter, JSW Steel achieved highest-ever quarterly saleable steel sale of 7.64 million tonnes, and it clocked crude steel production of 7.48 million tonnes.

"Consolidated Sales were highest ever at 7.64 million tonnes, up 14% YoY on the back of healthy domestic demand. Domestic sales stood at 6.59 million tonnes, reflecting an increase of 10% YoY. Exports at 0.84 million tonnes, increased by 53% YoY, contributing 11% to the sales from the Indian operations for Q3 FY26. Retail sales volumes were up 12% YoY," JSW Steel said in an exchange filing.

Global investment bank Morgan Stanley in a note said that JSW Steel's Indian subsidiaries Bhushan Power Steel Limited and JVML reported better numbers with cumulative EBITDA of ₹1,530 crore against its estimate of ₹1,150 crore.

BPSL slump sale will help deliver sharply over next two quarters and new 5 million tonnes integrated capacity expansion in Odisha will be completed by F30 which will lead to further expansion potential of 8.2 million tonnes, Morgan Stanley added.

JPMorgan said that JSW Steel is ticking all right boxes for balancing growth and capital discipline. JSW Steel has now provided a clear roadmap to reach 50 million tonnes India capacity by FY31 and management has guided for healthy 7-9% steel consumption growth in FY27 for the industry, JPMorgan said.

As of 11:41 am, JSW Steel shares traded 2.82% higher at ₹1,203, outperforming the NIFTY50 index which was up 0.3%.