JSW Steel more than triples quarterly profit as sales volumes and flat prices rise

what happened

JSW Steel, the Indian steelmaker with the biggest capacity in the country, more than tripled its consolidated net profit in the second quarter, to 52.79 billion rupees ($555.86 million) for the quarter ended September 30, according to Reuters.

Revenue rose 20.7% to 544.86 billion rupees, above the 504.94 billion rupees analysts expected, according to LSEG data. Sales volume grew 13% year on year to 7.46 million metric tons, helped by stronger dispatches from its flat steel business. The operating EBITDA margin reached 18.57%, compared with 15.76% a year earlier.

Raw material costs climbed 12.5%, lifting total expenses 12% to 481.68 billion rupees. Capital spending hit 62.66 billion rupees, the company's highest quarterly level. Analysts at Emkay Global and Elara Securities said JSW was better positioned than other Indian steelmakers thanks to its larger share of flat products.

why it matters

For markets, flat steel prices held up better than long steel prices, supported by demand from the automotive, pipe and construction sectors. That supports margins across the sector, while expensive coking coal remains the main cost risk for Indian steelmakers, and JSW's results show how firms with more flat-product exposure are handling that pressure.

market impact

Indian steel: firm flat steel demand and prices support margins; costlier coking coal pressures costs

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