JSW Steel Q1 Profit Surges to ₹2,184 Crore on Lower Expenses and Margin Expansion

JSW Steel posted a robust Q1 performance for FY2025 with a significant jump in profit and operating margins. The company’s results benefited from a notable reduction in expenses, even as revenues remained mostly flat compared to the year-ago period.

Lower Expenses Drive Strong Profit Growth

In Q1 FY2025, JSW Steel reported a net profit of ₹2,184 crore, a sharp rise from ₹845 crore in the same quarter last year. The key contributor to this surge was a ₹1,390 crore or 3.3% decline in total expenses, which fell to ₹40,325 crore from ₹41,715 crore the previous year. This cost optimisation lifted the company's operating performance meaningfully.

EBITDA and Margin See Healthy Expansion

The company’s EBITDA rose by 37.5% to ₹7,576 crore, up from the year-ago figure. Correspondingly, EBITDA margin improved to 17.56%, registering a 500 basis point increase from 12.83% last year. The focus on cost discipline helped sustain profitability in a flat revenue environment.

Revenue and Debt Position Overview

Quarterly revenue stood almost unchanged at ₹43,147 crore, marking a marginal 0.5% growth. The company's net debt was ₹79,850 crore at the end of June 2025, higher by ₹3,287 crore from March due to increased working capital investments. However, the net debt-to-EBITDA ratio improved slightly to 3.2x from 3.34x in the March quarter.

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Acquisitions and Expansion Initiatives

To expand its resource and manufacturing footprint, JSW Steel approved the acquisition of up to 100% stake in Saffron Resources Pvt Ltd, which owns 887 acres of land in Odisha. Additionally, the board approved a 24.9% stake purchase in JSSL, a joint venture with Severfield Group, for ₹235 crore. The company also signed an agreement with Andhra Pradesh Mineral Development Corporation Ltd. to develop an iron ore project at Konijedu-Marlapadu at a cost of ₹1,075 crore.

JSW Steel Share Price Performance

On July 18, 2025, JSW Steel share price opened at ₹1,039.00 on NSE, above the previous close of ₹1,034.20. During the day, it surged to ₹1,053.50 and dipped to ₹1,027.00. The stock closed at ₹1,034.40 by the end of the day. The stock registered a marginal change of 0.02%.

Over the past week, it has declined by 0.43%, over the past month, it has moved up by 3.15%, and over the past 3 months, it has moved up by 0.31%.

Conclusion

JSW Steel's Q1 performance showcases strong operational efficiency, with lower expenses translating into better margins and a sharp profit rise. Flat revenue growth was offset by robust internal controls and expansion moves that support long-term strength.

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