- Crude steel output up 3% y-o-y
- Sales soften from record Q4 levels
JSW Steel reported a resilient performance from its India operations in Q1 FY’27, with improved steel realisations and a richer product mix driving profitability despite elevated coking coal costs and lower quarter-on-quarter dispatches. Crude steel production increased 3% y-o-y to 6.35 million tonnes (mnt) from the proforma base of 6.14 mnt in Q1 FY’26 and remained broadly stable compared with 6.32 mnt in Q4 FY’26 (PF), despite the planned shutdown of Blast Furnace-3 (BF-3) at Vijayanagar for capacity expansion. Capacity utilisation stood at 94%, excluding the idled furnace.
Steel sales from India operations stood at 6.02 mnt, up 4% y-o-y from 5.78 mnt in Q1 FY’26 (PF), while declining 13% q-o-q from the record 6.94 mnt in Q4 FY’26 (PF), reflecting seasonal demand moderation following a strong March quarter. Revenue from operations increased 15% y-o-y to INR 42,894 crore, although it eased 3% q-o-q owing to lower sales volumes. Adjusted EBITDA rose to INR 9,096 crore, compared with INR 6,913 crore in Q1 FY’26 (PF) and INR 8,504 crore in Q4 FY’26 (PF), registering a 32% y-o-y and 7% q-o-q increase, supported by higher net sales realisation (NSR) and an improved value-added product mix. Profit after tax (PAT) nearly doubled y-o-y to INR 4,927 crore and increased 39% over the previous quarter.
Project updates
BF-3 upgradation at Vijayanagar: The expansion of Blast Furnace-3 from 3 mtpa to 4.5 mtpa was commissioned in June 2026 and is currently ramping up production.
Dolvi Phase-III expansion: Capacity expansion from 10 mtpa to 15 mtpa is progressing as planned, with commissioning targeted by September 2027.
JSW Utkal greenfield project: Construction activities continue at the integrated 5 mtpa steel complex. Pellet plants are scheduled for commissioning by FY’28, while steelmaking facilities are expected by FY’30.
Downstream expansion: New cold rolling, galvanising and tinplate facilities at Vijayanagar, Khopoli and Rajpura are under implementation to strengthen the company’s value-added flat steel portfolio.
Other highlights
Production remains stable: India operations crude steel production increased 3% y-o-y and 1% q-o-q, despite the temporary shutdown of BF-3, reflecting operational stability across manufacturing facilities.
Sales moderate sequentially: Steel sales rose 4% y-o-y but declined 12% q-o-q from the record March-quarter level. Domestic sales accounted for 89% of total dispatches, while exports contributed 11%.
Value-added sales improve: Value-added and special products (VASP) sales increased to 3.65 mnt, up 8% y-o-y, with their share of total sales rising to 61% from 59% a year earlier, supported by higher demand from automotive, renewable energy and engineering sectors.
Margins strengthen: Adjusted EBITDA improved 32% y-o-y and 7% q-o-q, aided by higher NSR and favourable product mix despite continued pressure from coking coal and energy costs.
Capex on track: The company incurred INR 4,869 crore in capital expenditure during the quarter and maintained FY’27 capex guidance of INR 22,000-24,000 crore, primarily towards steelmaking expansion and downstream projects.
FY’27 guidance maintained: JSW Steel reiterated its FY’27 guidance of 29.75 mnt consolidated crude steel production and 28.60 mnt steel sales.
Outlook
JSW Steel continues to expand its India steelmaking footprint through ongoing projects at Vijayanagar, Dolvi and Utkal, while strengthening downstream capabilities to increase the share of value-added products. The planned capacity additions are expected to support long-term volume growth and improve product mix across key end-use sectors, including automotive, infrastructure and renewable energy.
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