JSW Steel is expected to deliver a robust set of numbers for the first quarter of FY26, driven largely by improved realisations and lower raw material costs. The company will announce its results today.
Analysts tracking the company forecast around 130% year-on-year (YoY) growth in profit after tax, while revenue is likely to see a modest 4% YoY increase on average.
According to estimates, JSW Steel’s standalone volumes are expected to come in at around 5.09–5.2 million tonnes, reflecting a marginal 3% YoY rise, but down 9–12% sequentially due to planned maintenance shutdowns, particularly at the Dolvi plant.
Realisation per tonne is projected to increase by Rs 2,650 QoQ, driven by improved steel prices and supportive cost environment. Kotak Institutional Equities expects a 4.2% QoQ rise in realisation, though still 8.6% lower YoY, while Nuvama anticipates that the benefit from lower coking coal prices will offset the pressure from higher iron ore costs.
EBITDA per tonne is forecast to expand sharply. Kotak pegs EBITDA/t at Rs 11,127, up 33% YoY and 27% QoQ, while Nuvama sees it at Rs 10,820, a rise of over Rs 2,000 per tonne sequentially. This expansion in operating margin is expected to support the bottomline even as volumes remain subdued.
On the revenue front, analysts believe the impact of better average selling prices (ASP) will be partly offset by weaker volume performance, capping topline growth.
Key monitorables for the quarter include: Pricing outlook amid global steel trends, commentary on subsidiary performance, particularly Bhushan Power & Steel (BPSL) and updates on capex projects and commissioning timelines.
Management guidance on domestic demand trends and export opportunities will also be closely tracked by investors. The strong profit growth, despite volume challenges, is expected to reflect the company’s cost discipline and pricing power in a recovering steel cycle.
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Source Name : Economic Times