JSW Steel: A compelling volume growth story

HIGHER VOLUMES, LOWER COSTS TO OFFSET PRICE HIT

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JSW STEEL'S CONSOLIDATED Ebitda came in 5% above Bloomberg consensus, driven by strong improvements in both standalone and subsidiary performance. The key contributor was a ₹3,300/tonne (+6%) q-o-q increase in net sales realisation (NSR) across Indian operations, supported by lower raw material costs—particularly a $14/tonne drop in coking coal prices. However, operating performance was partially offset by one-time costs: a ₹340 crore FX mark-to-market loss on Euro loans and ₹200 crore in shutdown-related expenses, which together shaved off ₹800/tonne from Ebitda. Looking ahead, while Q2FY26 realisations are expected to soften, the impact is likely to be offset by higher volumes, a ₹1,000/tonne