JSW Steel – Investor Presentation Summary

Key Operational Highlights

  • Consolidated crude steel production of 6.59 million tonnes in Q1 FY27, up 3% YoY.
  • Consolidated steel sales of 6.25 million tonnes, up 4% YoY.
  • India Operations capacity utilisation stood at 94% in Q1 (excluding Vijayanagar BF-3 which was under shutdown) vs. 88% in Q1 FY26.
  • Flats sales up 9% YoY as production focused on Flats due to better demand and pricing.
  • VASP (Value Added & Special Products) sales up 8% YoY, comprising 61% of total sales.
  • Record Q1 sales to Auto (+18% YoY) and Renewables (+24% YoY). Sales to MSMEs up 23% YoY.
  • Key drivers: Efficient operation of assets across plants and better product mix.

Segment-wise Performance

  • Indian Operations: Production 6.35mt (up 3% YoY), Sales 6.02mt (up 4% YoY).
  • USA – Ohio Operations: Production 0.24mt (down 3% YoY), Sales 0.23mt (down 9% YoY).
  • JSW JFE Steel Ltd. (JJSL) JV: Production 0.99mt (up 12% YoY), Sales 0.86mt (up 11% YoY).
  • Explanation: Growth in Indian Operations driven by strong domestic demand and operational efficiency.

Financial Highlights

Revenue: Rs. 47,364 crore

EBITDA: Rs. 9,383 crore (Reported); Rs. 9,373 crore (Adjusted)

PAT: Rs. 4,696 crore

EPS: Rs. 19.02

Margins: Not explicitly stated as percentages, but implied EBITDA margin is approximately 19.8%.

YoY comparison: Revenue up 19% YoY (from ₹39,880 crore PF), PAT up 110% YoY (from ₹2,239 crore PF).

Drivers of financial performance: Higher realisations partly offset by lower volumes; cost increase due to higher coking coal, power & fuel and other input costs; lower finance costs.

Comparison to market estimates: Not specified.

Key Risks: Disclosed risks include fluctuations in earnings, intense competition, raw material price hikes, ability to manage growth, and geopolitical uncertainties.

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

  • Indian Operations domestic sales: 89% of total (Q1 FY27).
  • Indian Operations export sales: 11% of total (Q1 FY27).

Regional Breakdown: Not specified beyond domestic/export split for Indian Operations.

Balance Sheet Snapshot

Net Debt: ₹46,157 crore.

Net Debt/Equity: 0.42x.

Net Debt/EBITDA: 1.46x (LTM basis).

Reserves: Not explicitly stated.

Current Assets/Liabilities: Not explicitly stated.

Working Capital/Leverage Metrics: Stated leverage caps revised to ND/Equity 1.25x and ND/EBITDA 3.00x.

Financial Health Insights: Significant deleveraging of ~₹37,000 crore completed; Cash and Cash Equivalents of ₹21,630 crore; strong liquidity and access to diversified funding sources.

Capex & Cash Flow Health

Capital Expenditure: FY27 expected capex spend is ₹22,000-24,000 crore; Q1 FY27 capex spend was ₹4,869 crore.

Free Cash Flow: Not specified.

Operating Cash Flow: Not specified.

Net Debt Movement: Net Debt reduced from ₹83,130 crore as of 31-Mar-26 to ₹46,157 crore as of 30-Jun-26.

Investment Rationale: Focus on capacity expansion, value-added downstream facilities, and sustenance.

Strategic & R&D Initiatives

Investments in Innovation: Key projects include Vijayanagar BF-3 expansion to 4.5mtpa (commissioned June 2026), JVML Phase-2 5mtpa expansion, JSW Utkal 5mtpa greenfield project, Dolvi Phase-III expansion to 15mtpa, 1mtpa EAF at Kadapa, and various downstream projects.

Expected impact on growth: Projects aimed at increasing capacity and value-added product portfolio.

Strategic Rationale: Expanding into high-growth markets, reducing operational costs, and enhancing product mix.

Industry Trends & Business Environment

Macro/Industry Trends: India remains the fastest growing major economy; strong domestic steel demand; higher imports made India a net importer in Q1; raw material prices elevated.

Impact on Company: Better demand and pricing in flats segment; cost pressures from higher input costs.

Management Commentary & Growth Outlook

Strategic Outlook: Targeting Net Neutrality in carbon emissions by 2050; focusing on cost leadership, strategic growth, and value-added products.

FY Guidance: FY27 Consolidated Volumes Guidance: Production 29.75mt, Sales 28.6mt (includes BMM Ispat production of 0.75mt and sales of 0.70mt; excludes JSW JFE Steel JV).

Market Share Targets: Not specified.

Risks and Opportunities: Geopolitical developments, monsoon risks, raw material price volatility, and competitive intensity highlighted.

ESG Updates

  • Diamond Prize in Partnerships for Sustainable Development and Platinum Prize in Climate Action for Project SEED at Global ESG Awards.
  • Project SEED delivered cumulative emissions reduction of ~5 Mn tCO2 since 2022.
  • Scrap utilisation up 16% YoY in Q1.
  • Targeting No Net Loss of Biodiversity by 2030.
  • Launched Low Emission Steel brand in FY26 with 1 mn tonnes of CO2 credits certified.