JSW Steel , India's leading integrated steel company, has announced a strategic reorganization of its US operations and the merger of certain Indian subsidiaries, while also highlighting strong steel demand in India and unveiling a significant capital expenditure plan. Additionally, a JSW Steel executive has made price predictions for key commodities in the upcoming quarter.

Capital Expenditure Plans

JSW Steel has announced capital expenditure plans of approximately 690 billion rupees over the next three years. The investment program is set to begin in the second half of FY26, as stated by a company executive. This substantial investment underscores the company's commitment to growth and expansion in the coming years.

Strong Steel Demand in India

A JSW Steel executive has predicted that India's steel demand will grow by 8-9% during the current fiscal year. This forecast indicates expected expansion in the domestic steel market. The company views the current demand environment as robust, supported by government spending and steady consumption patterns.

Commodity Price Forecasts

A JSW Steel executive has provided price predictions for key commodities in the third quarter:

• Iron ore prices are anticipated to decline in Q3.
• Steel prices are expected to rise during November-December.
• Coking coal prices are forecasted to increase by $3-5 per tonne in Q3.

US Operations Consolidation

The Board of Directors of JSW Steel has approved a plan to consolidate its US business operations under a single holding company in the United States. This restructuring involves the company's investments in multiple entities under Periama Holdings LLC and Acero Junction Holdings Inc.

The Baytown operations, which include plate and pipe mills in Texas and coking coal assets in West Virginia, are currently held through Periama, a wholly-owned subsidiary of JSW Steel (Netherlands) B.V. The Ohio steel manufacturing operations are housed under Acero.

Under the new structure, all US business operations will be consolidated into a single holding company in the US, which will be held by JSW Steel through JSW Steel (Netherlands) B.V. This reorganization is subject to regulatory and other approvals.

Merger of Indian Subsidiaries

JSW Steel's Board has approved a Scheme of Amalgamation for the merger of its wholly-owned subsidiaries - Amba River Coke Limited, Monnet Cement Limited, and JSW Retail and Distribution Limited - with the parent company. This merger, which is subject to regulatory and other approvals, is expected to bring operational efficiencies due to synergistic linkages between these companies.

Financial Performance Highlights

For the second quarter of FY2026 (Q2 FY26), JSW Steel reported robust consolidated performance:

The company's Net Gearing (Net Debt to Equity) stood at 0.93x at the end of Q2 FY26, compared to 0.95x at the end of Q1 FY26. The Net Debt to EBITDA ratio improved to 2.97x from 3.20x in the previous quarter.

Operational Highlights

• Consolidated Crude Steel Production reached a record high of 7.90 million tonnes in Q2 FY26.
• Domestic sales increased by 14% YoY to 6.33 million tonnes.
• Exports surged by 89% YoY, contributing 10% to sales from Indian operations.
• Retail sales volumes grew by 26% YoY.

Strategic Developments

JSW Steel continues to focus on enhancing its downstream capacities and capabilities. The company has announced several projects, including:

• A 1 MTPA EAF in Kadapa, Andhra Pradesh, targeted for completion by end-FY29.
• Expansion of Cold Rolled Grain Oriented (CRGO) Electrical Steel capacity.
• A 1 MTPA section mill at the Raigarh plant for structural steel production.

The company's consolidated capex spend during Q2 FY26 was ₹3,135 crores, with expectations to spend ₹20,000 crores during FY26.

Outlook

Despite global economic uncertainties, JSW Steel remains optimistic about India's economic growth. The Reserve Bank of India has revised its FY26 GDP growth forecast upward to 6.8%, supported by strong domestic demand and recent policy measures.

JSW Steel's strategic reorganization, continued focus on expansion and efficiency, coupled with the strong steel demand in India and the newly announced capital expenditure plan, are expected to strengthen its position in the global steel market and capitalize on India's growth trajectory.

JSW Steel Limited , India's leading integrated steel company, has reported mixed financial results for the second quarter, with revenue growth but a decline in profitability.

Key Highlights

• Consolidated revenue increased by 4.9% quarter-on-quarter to ₹44,560.00 crore
• Consolidated net profit declined by 25.7% quarter-on-quarter to ₹1,623.00 crore
• EBITDA fell by 6% quarter-on-quarter to ₹7,115.00 crore
• EBITDA margin compressed to 15.8% from 17.6% in the previous quarter

Financial Performance

JSW Steel's financial performance for the quarter shows mixed results across key metrics:

The company's performance was characterized by revenue growth, but with pressure on profitability.

Operational Highlights

• EBITDA margin declined to 15.8% from 17.6% in the previous quarter
• The company faced margin compression despite revenue growth

Outlook

While JSW Steel managed to grow its revenue, the decline in profitability highlights the challenges in the steel industry. The company's ability to maintain revenue growth in a difficult market environment demonstrates its resilience, but the pressure on margins suggests ongoing industry headwinds.

As JSW Steel navigates these challenges, it may focus on cost optimization and operational efficiency to improve profitability while continuing to capitalize on growth opportunities in the Indian steel market.

Investors and analysts will likely closely watch the company's strategies to address the margin pressure and its ability to return to profit growth in the coming quarters.