en.Wedoany.com Reported - India's JSW Steel reported profit growth in its Indian operations for the first quarter of fiscal 2027, despite rising coking coal costs and a sequential decline in shipments. Improved steel realization and a better product mix were key drivers. Crude steel production increased by 3% year-on-year to 6.35 million tonnes, compared to a pro-forma base of 6.14 million tonnes in the same period last fiscal year; output was largely flat compared to the pro-forma 6.32 million tonnes in the fourth quarter of the previous fiscal year, during which the No. 3 blast furnace at the Vijayanagar plant was shut down as planned for capacity expansion. Excluding the shutdown furnace, capacity utilization stood at 94%.

Steel sales volume from Indian operations was 6.02 million tonnes, up 4% year-on-year from a pro-forma 5.78 million tonnes in the same period last fiscal year, but down 13% sequentially from a record pro-forma 6.94 million tonnes in the fourth quarter of the previous fiscal year, reflecting a seasonal slowdown in demand following a strong March quarter. Revenue from operations increased by 15% year-on-year to INR 428.94 billion, but edged down 3% sequentially due to lower volumes. Adjusted EBITDA rose to INR 90.96 billion, compared to a pro-forma INR 69.13 billion in the same period last fiscal year and a pro-forma INR 85.04 billion in the fourth quarter of the previous fiscal year, up 32% year-on-year and 7% sequentially, driven by higher net sales realization and an improved high-value-added product mix. Net profit after tax nearly doubled year-on-year to INR 49.27 billion, up 39% from the previous quarter.

In terms of project progress, the capacity expansion project for the No. 3 blast furnace at the Vijayanagar plant commenced operations in June 2026, increasing capacity from 3 million tonnes per annum to 4.5 million tonnes per annum, and is currently ramping up production. The Phase III expansion project at the Dolvi plant is progressing as planned, with capacity set to expand from 10 million tonnes per annum to 15 million tonnes per annum, targeting commissioning in September 2027. Construction activities continue at the JSW Utkal greenfield project, an integrated steel complex with an annual capacity of 5 million tonnes. The pellet plant is scheduled for commissioning in fiscal 2028, and the steelmaking facilities are expected to be commissioned in fiscal 2030. On the downstream expansion front, new cold rolling, galvanizing, and tinplate facilities are being implemented in Vijayanagar, Khopoli, and Rajpura to enhance the company's high-value-added flat steel product portfolio.

Other highlights include: Despite the temporary shutdown of the No. 3 blast furnace, crude steel production from Indian operations grew 3% year-on-year and 1% sequentially, reflecting operational stability across manufacturing facilities. Steel sales volume increased 4% year-on-year but declined 12% sequentially from the record March quarter; domestic sales accounted for 89% of total shipments, with exports comprising 11%. Sales of high-value-added and special products rose to 3.65 million tonnes, up 8% year-on-year, with their share of total sales increasing to 61% from 59% a year ago, driven by demand growth from the automotive, renewable energy, and engineering sectors. Adjusted EBITDA grew 32% year-on-year and 7% sequentially, supported by higher net sales realization and a favorable product mix, despite continued pressure from coking coal and energy costs. The company's capital expenditure for the quarter was INR 48.69 billion, and it maintains its fiscal 2027 capital expenditure guidance of INR 220 billion to INR 240 billion, primarily for steelmaking expansion and downstream projects. JSW Steel reaffirmed its fiscal 2027 guidance for consolidated crude steel production of 29.75 million tonnes and steel sales volume of 28.6 million tonnes.

Looking ahead, JSW Steel continues to expand its Indian steelmaking footprint through ongoing projects in Vijayanagar, Dolvi, and Utkal, while enhancing downstream capabilities to increase the share of high-value-added products. The planned capacity additions are expected to support long-term production growth and improve the product mix for key end-use sectors such as automotive, infrastructure, and renewable energy.