JSW Steel: quarterly profit more than doubles, but nearly half is one-off items

10 августа JSW Steel раскрыла результаты за первый квартал 2026 финансового года. Выручка выросла на 9,9% год к году, до 466,6 млрд рупий, EBITDA – на 27,9%, до 93,8 млрд рупий, а чистая прибыль – на 113%, до 46,5 млрд рупий. При текущей цене акция выглядит скорее привлекательно: мультипликатор EV/EBITDA ниже собственного трёхлетнего среднего, а рост маржинальности и прибыли подкреплён операционным рычагом, хотя часть прибыли носит разовый характер.

Key takeaways

— Выручка прибавила 9,9% на фоне роста объёмов продаж стали

— EBITDA-маржа расширилась с 18,4% до 21,5% благодаря операционному рычагу

— Чистая прибыль выросла в 2,1 раза, но около 40% приходится на разовые статьи

— Долговая нагрузка составляет 2,19 EBITDA за последние 12 месяцев

— Дивидендная доходность за последние 12 месяцев – 0,54%, что ниже ключевой ставки

— EV/EBITDA (11,4) ниже трёхлетнего среднего (12,6), что указывает на относительную недооценку

Attractiveness

Key figures, INR bn

Revenue grew 9.9% on higher steel sales volumes

In Q1 FY2026, JSW Steel's revenue reached INR 466.6 billion, up 9.9% year-on-year. Growth was driven by higher steel sales volumes, which offset some decline in global steel prices.

Sequential dynamics show steady acceleration: revenue grew 12.3% YoY in Q4 FY2025 and 9.9% in Q1 FY2026. This confirms sustained steel demand in India despite global volatility.

EBITDA margin expanded from 18.4% to 21.5% on operating leverage

EBITDA in the reported quarter rose 27.9% YoY to INR 93.8 billion, with EBITDA margin expanding from 18.4% to 21.5%. The main driver was lower unit costs on higher volumes – operating leverage worked in full.

Margin expansion is a key positive signal for shareholders: it shows the company is not only growing revenue but also improving efficiency. If steel prices remain stable, the margin could hold at current levels.

Net profit more than doubled, but about 40% is one-off items

Net profit for Q1 FY2026 stood at INR 46.5 billion, more than double the year-ago figure. However, a significant portion – about 40% – came from one-off items, including tax credits and other non-operating income.

Excluding one-offs, profit would have grown by roughly 60-70%, still a strong result. Nevertheless, investors should note that the comparison base will be higher in coming quarters, and profit growth is likely to moderate.

Net debt stands at 2.19x EBITDA for the trailing twelve months

At the end of the reporting period, JSW Steel's net debt stood at INR 760.6 billion, equivalent to 2.19x EBITDA for the trailing twelve months. The debt level remains moderate for the steel industry, where capital expenditure is traditionally high.

Over the last twelve months, net debt declined by INR 293.3 billion, reflecting strong operating cash flow of INR 251.5 billion over the same period. The company is directing free cash to debt reduction, enhancing financial stability.

Trailing dividend yield is 0.54%, below the key rate

Over the last twelve months, JSW Steel paid dividends corresponding to a yield of 0.54% at the current price. This is well below the Reserve Bank of India's key rate, making the stock unattractive for income-focused investors.

The company traditionally pays out a small portion of profit, preferring to reinvest in capacity expansion. In the current year, given high profit, we expect the dividend could be increased, but its yield would still remain below 1%.

EV/EBITDA (11.4) is below the three-year average (12.6), indicating relative undervaluation

The current EV/EBITDA multiple is 11.4 versus the three-year average of 12.6. This suggests the market values the company somewhat cheaper than its own three-year history, despite improved operating performance.

P/E for the trailing twelve months – 12.9 – also looks moderate for a company with growing earnings. If the margin expansion trend continues, the stock has potential for re-rating toward its historical average.

Valuation on the latest reported figures

Bottom line

Strong points of the report were 9.9% revenue growth, EBITDA margin expansion to 21.5%, and doubling of net profit. However, about 40% of profit came from one-off items, and dividend yield remains low. At the same time, valuation below its own three-year average and debt reduction make the stock rather attractive for a long-term investor counting on further operational improvement.