JSW Steel is expected to report softer profit margins for the second quarter of the financial year, even as domestic demand for steel continues to remain strong. Market analysts suggest that weaker realisations, driven by falling steel prices and higher input costs, are likely to weigh on the company’s earnings performance.
While India’s infrastructure and construction sectors have maintained steady demand for steel, global price trends and lower export opportunities have limited the company’s ability to sustain high selling prices. The moderation in realisations comes after a period of volatility in international steel markets, where prices have been impacted by subdued Chinese demand and oversupply concerns.
According to analysts, the cost of raw materials, particularly coking coal and iron ore, has remained elevated, further compressing profit margins. In addition, logistical challenges and fluctuating energy prices have added to the pressure on production costs. Despite these headwinds, JSW Steel’s overall sales volume is expected to remain stable, supported by strong domestic consumption and the government’s ongoing focus on infrastructure expansion.
Industry experts believe that the margin pressure seen this quarter may be temporary, as steel prices are expected to stabilise in the coming months. They note that JSW Steel’s diversified product mix, operational efficiency, and continued investment in capacity expansion will help cushion the impact of short-term price volatility.
The company has also been focusing on sustainability initiatives and digital integration across its manufacturing units to enhance long-term competitiveness. However, analysts caution that global economic uncertainties and energy price fluctuations could continue to influence profitability in the near term.
Despite margin challenges, JSW Steel’s strong demand base and strategic expansion plans position it well for recovery once market conditions improve.
