JSW Steel shares rise 6% as quarterly results beat analyst estimates

what happened

Shares of JSW Steel, India's largest steelmaker by capacity, rose 6% on October 26 to Rs 1,260 apiece. The Mumbai-based company's consolidated net profit for the quarter ended September 30 reached Rs 5,279 crore, compared with Rs 1,623 crore a year earlier, according to TradingView.

Sales volume grew 13% year on year, and the operating EBITDA margin widened to 18.57% from 15.76%. Revenue climbed 21% to Rs 54,486 crore, above the Rs 50,494 crore analysts had expected, based on LSEG data. Chief executive Jayant Acharya said coking coal prices could rise by $25 a ton in the October-December period.

Brokerages reacted positively. CLSA, Jefferies, JM Financial, Motilal Oswal and Prabhudas Lilladher set target prices ranging from Rs 1,337 to Rs 1,650, and TradingView notes that some see up to 39% upside.

why it matters

The results suggest that higher steel prices may offset rising raw-material costs, which is the central question for steelmakers' margins. Coking coal and iron ore remain major cost items, so their price moves will shape profitability across the sector and the valuations of metals companies.

market impact

Indian steel sector: higher steel prices and demand support earnings, while costlier coking coal pressures margins

tags

instruments