- Consolidated steel sales rise by 19% y-o-y, 10% q-o-q
- Value-added, special products sales hit record peak
JSW Steel reported a strong operational and financial performance in the second quarter of the fiscal year (Q2FY’26). The company achieved robust growth in both crude steel production and sales volumes, supported by the ramp-up of new capacities.
The consolidated capex spending for the first half of the fiscal year (H1FY’26) reached approximately INR 12,106 crore.
Update on key developments, strategic projects
BPSL resolution: The Supreme Court, in its judgement dated 26 September 2025, dismissed the appeals filed by the erstwhile promoters and certain operational creditors, and upheld the NCLAT order of 2020 approving JSW Steel’s resolution plan for BPSL
Electrical steel expansion: The company announced the expansion of its CRGO electrical steel capacity, with the Nashik facility being expanded from 50 ktpa to 250 ktpa and the planned Vijayanagar facility enhanced from 62 ktpa to 100 ktpa.
Captive coking coal: JSW Steel has entered into definitive agreements to acquire an additional 10% stake in the Illawarra Coking Coal Mines, increasing its total stake to 30%.
Decarbonisation: JSW Steel successfully commissioned India’s first green hydrogen electrolyser at Vijayanagar, which has a capacity of 25 MW and produces 3,800 t per annum. The company also commissioned 885 MW of renewable energy capacity by the end of Q2FY’26.
Crude steel production rises: JSW Steel’s Indian operations produced 7.66 mnt, up 16% y-o-y. Moreover, on a q-o-q basis, production increased by 9% due to fewer planned maintenance shutdowns compared to Q1FY’26.
Steel sales show robust growth: Steel sales volumes reached 7.07 mnt, up 19% y-o-y. On a q-o-q basis, sales rose by 10% from 6.43 mnt in the previous quarter. The share of exports stood at 10%. Sales of value-added and special products (VASP) contributed 64% to the total, marking the highest-ever quarterly share.
In fact, JSW Steel’s robust growth was largely driven by its value-added and special products (VASP) portfolio. The company achieved its highest-ever VASP sales, reaching 4.31 mnt in Q2FY’26, representing a strong 20% y-o-y increase. This growth was particularly notable across several key segments:
- Automotive: Sales to the automotive sector surged 15% y-o-y, marking a new peak for the company in this category.
- Cold-rolled products: Sales were up 15% y-o-y, also reaching a new peak.
- Alloy long products: Sales saw a healthy 12% y-o-y increase.
The retail segment sales were up 26% y-o-y, supported by the company’s extensive distribution channel of 2,883 points.
Financial, cost metrics
Operating EBITDA for Indian operations declines q-o-q: The consolidated reported operating EBITDA for Indian operations in Q2FY’26 stood at INR 6,881 crore, which was an 8% decline q-o-q from the previous quarter’s INR 7,496 crore.
JSW Steel reported a consolidated EBITDA per tonne of INR 9,700 for Q2FY’26.
Coking coal costs: Indian operations benefited from lower coking coal prices on a q-o-q basis. Power costs were also lower due to higher use of renewable energy and efficiency improvements.
Net sales realisations (NSR): Higher NSR and volumes led to improved performance on a y-o-y basis. However, on a q-o-q basis, performance was impacted by the spillover of shipments of certain pipe orders to Q3 at Baytown operations.
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