JSW Steel Ltd, one of India’s leading steel producers, reported a remarkable performance in its Q2 FY26 results on October 17, 2025. The company’s consolidated net profit surged 270% year-on-year to ₹1,623 crore, driven by higher steel production, improved operational efficiency, and lower input costs. However, sequentially, the profit was down 25% compared to ₹2,184 crore reported in Q1 FY26.
The company’s consolidated revenue rose 13.8% year-on-year to ₹45,152 crore, compared to ₹39,684 crore in Q2 FY25. Sequentially, the revenue also registered a 4.6% growth over ₹43,147 crore in Q1 FY26.
Operational Performance: Record Steel Production and Strong Sales
JSW Steel achieved an all-time high consolidated crude steel production of 7.90 million tonnes during Q2 FY26 — a 17% increase compared to the previous year. The Dolvi plant operated at full capacity following a planned maintenance shutdown in Q1, while expansions at Jindal Vijayanagar Metallics Ltd (JVML) and Bhushan Power & Steel Ltd (BPSL) contributed to the surge.
Consolidated sales stood at 7.34 million tonnes, marking a 20% year-on-year rise. Domestic sales reached 6.33 million tonnes, reflecting a 14% annual and 6% quarterly growth. Meanwhile, exports witnessed a significant rebound — up 89% year-on-year and 56% quarter-on-quarter — accounting for 10% of Indian operations’ total sales. Retail volumes also rose impressively by 26% year-on-year and 13% quarter-on-quarter.
Financial Highlights: Lower Debt and Improved Efficiency
The company’s Adjusted EBITDA increased 39% year-on-year, supported by higher volumes and lower input costs for iron ore, coking coal, and power. However, this was partly offset by lower steel realisations. Reported EBITDA for the quarter stood at ₹7,115 crore.
At the end of the quarter, JSW Steel’s net gearing improved slightly to 0.93x (from 0.95x in Q1 FY26), while net debt to EBITDA reduced to 2.97x (from 3.20x). The company’s total net debt decreased by ₹697 crore to ₹79,153 crore as of 30 September 2025.
Strategic Developments: Green Hydrogen and Renewable Energy Expansion
Reinforcing its commitment to sustainability, JSW Steel launched India’s first 25 MW Green Hydrogen Electrolyser, capable of producing 3,800 tonnes of green hydrogen annually. This will be used at the Vijayanagar DRI facility to help lower carbon emissions.
In addition, the board approved plans to develop 2.5 GW of renewable energy and 320 MWh of battery storage capacity. By the end of Q2 FY26, 885 MW of renewable capacity was already operational, highlighting the company’s continued focus on clean energy integration.
Legal Update: Supreme Court Verdict on BPSL
In a key development, the Supreme Court upheld JSW Steel’s 2020 resolution plan for Bhushan Power & Steel Ltd (BPSL), dismissing appeals by former promoters and creditors. The ruling affirms JSW Steel’s role in successfully reviving BPSL into a profitable business entity.
Outlook: Resilient Domestic Demand, Global Challenges Persist
JSW Steel noted that while global growth in 2025 has been resilient, supported by trade and consumption ahead of tariff changes, geopolitical uncertainties and high tariffs may weigh on momentum in 2026.
India, however, remains a bright spot. Reforms in the GST framework are expected to spur demand in automobiles and consumer durables, while favourable monsoons have lifted rural consumption. Public capital expenditure also remains strong, with 38% of the annual budget already utilised by August 2025.
Infrastructure demand continues to be robust, renewable energy additions are accelerating, and the commercial real estate sector remains steady. The company anticipates an increase in residential project launches in the latter half of FY26.
Conclusion
JSW Steel’s Q2 FY26 results underscore its operational strength and strategic foresight amid a complex global landscape. With record production levels, reduced leverage, and a strong push towards green energy, the company remains well-positioned to capitalise on India’s infrastructure growth and evolving energy ecosystem.
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