Equity

Profit before tax stood at Rs 2,344 crore in Q2 FY26, rising 197.08% from Rs 789 crore reported in Q2 FY25.

The company's reported EBITDA stood at Rs 7,115 crore, marking a 31% increase compared to Rs 5,437 crore in Q2 FY25. The EBITDA margin improved significantly to 17.4% in Q2 FY26, up from 14.2% in the same quarter last year.

Consolidated crude steel production during Q2 FY26 was the highest ever at 7.90 million tonnes, up 17% year-on-year. This growth was driven by the Dolvi plant operating at optimum capacity after a planned maintenance shutdown in Q1 FY26 and the ramp-up of JVML and BPSL expansions. Consolidated sales were 7.34 million tonnes, up 20% year-on-year on higher production volumes.

Domestic sales stood at 6.33 million tonnes, reflecting a 14% increase year-on-year and a 6% rise quarter-on-quarter. Exports surged by 89% year-on-year and 56% quarter-on-quarter, contributing 10% to the sales from Indian operations in Q2 FY26. Retail sales volumes grew by 26% year-on-year and 13% quarter-on-quarter.

The company's net gearing (net debt to equity) stood at 0.93x at the end of the quarter, slightly improved from 0.95x at the end of Q1 FY26. Net debt to EBITDA ratio was 2.97x, compared to 3.20x at the end of Q1 FY26. Net debt as of 30th September 2025 stood at Rs 79,153 crore, reduced by Rs 697 crore versus 30th June 2025.

Crude Steel Production at the Indian Operations for the Quarter was the highest ever, at 7.66 million tonnes, up 16% YoY. Steel Sales for the Quarter were 7.07 million tonnes, higher by 19% YoY.

During the quarter, Bhushan Power & Steel (BPSL), a wholly-owned subsidiary, registered crude steel production of 0.96 million tonnes and sales volume of 0.83 million tonnes. Revenue from operations and adjusted EBITDA for BPSL stood at approximately Rs 5,162 crore and Rs 724 crore, respectively. Adjusted EBITDA declined by 5% QoQ, primarily due to lower realizations, partially offset by reduced costs and higher volumes. BPSL reported a profit after tax of approximately Rs 166 crore for the quarter.

On its outlook, the company stated that global growth in 2025 has remained resilient, supported by front-loaded trade flows and consumption ahead of tariff changes. However, the outlook for 2026 is more cautious, with ongoing geopolitical uncertainty and elevated tariffs likely to weigh on momentum, despite some easing following recent trade agreements.

In the U.S., robust consumer spending and strong investment in aluminum-related sectors are sustaining growth. The Federal Reserve has resumed rate cuts in response to a softening labor market. While the pass-through of tariffs to inflation has been limited so far, it may increase going forward.

Eurozone growth was boosted during the first half of the year by front-loading effects. The underlying trend remains stable, supported by growth in services and a gradual recovery in manufacturing. Past rate cuts by the ECB, along with fiscal easing in select countries, are expected to support modest growth in the near term.

In China, after a relatively strong first half, economic momentum slowed in Q3 CY25, although government measures continue to support consumption. Further policy stimulus is likely, with targeted interventions aimed at avoiding disruptive competition and promoting capacity rationalization across sectors.

India's economic momentum remains broadly positive, with several supportive factors emerging in the second half of FY26. Recent GST reforms are expected to provide a significant boost to consumption, particularly in segments such as automobiles and consumer durables. While Q2 trends were impacted by deferred purchases ahead of the revised GST rates, demand is expected to rebound strongly in H2.

Rural prospects are encouraging, supported by an above-normal monsoon, higher kharif sowing, and healthy volumes in tractors and FMCG, although rainfall distribution has been uneven in certain regions.

On the external front, higher US tariffs on Indian goods remain a headwind for exports, with sentiment in IT and outsourcing sectors affected by ongoing policy uncertainty. Nevertheless, public capital expenditure continues to be robust, with central government capex reaching 38% of the full-year budget during April-August 2025.

Infrastructure and construction-related goods are witnessing strong demand, while renewable energy capacity additions are accelerating. Commercial real estate remains resilient, and although residential sales were soft in key cities during H1, new launches are expected to pick up in the second half.

Meanwhile, the company's board of directors has approved a strategic reorganization of the company's U.S. operations as part of ongoing efforts to consolidate and simplify the overall group structure. The plan is expected to reduce the number of legal entities, simplify compliances, and create a unified holding structure for the U.S. business.

This restructuring and consolidation exercise does not involve any sale of the company's overseas investments. The company will continue to hold the same economic interests in the Netherlands Co. and its U.S. operations. Currently, JSW Ohio is held by JSW Steel through 100% subsidiary Acero. Post restructuring, Acero will cease to exist, and JSW Ohio and other U.S. operating entities will be held through a single U.S. holding company, which in turn will be held by JSW Steel through JSW Netherlands.

Furthermore, the board has also approved the scheme of amalgamation of its wholly-owned subsidiaries, Amba River Coke, Monnet Cement and JSW Retail and Distribution, with the company.

JSW Steel is the flagship business of the diversified, US$ 23 billion JSW Group. As one of India's leading business houses, JSW Group also has interests in energy, infrastructure, cement, paints, realty, e-platforms, mobility, defence, sports, and venture capital.

The scrip shed 0.77% to Rs 1,162.80 on the BSE.

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