JSW Steel, India’s largest steel producer, posted a sharp 235 per cent year-on-year jump in consolidated net profit to ₹2,410 crore in the third quarter of FY26, compared with ₹719 crore in the same period last year. The strong growth was primarily driven by a one-time deferred tax gain arising from the sale of a 50 per cent stake in subsidiary Bhushan Power & Steel Ltd (BPSL).
Revenue from operations increased 11.1 per cent to ₹45,991 crore in the December quarter, up from ₹41,378 crore in Q3 FY25, reflecting stable steel demand and improved operational performance.
The one-time gain stemmed from JSW Steel’s agreement to sell half of its stake in BPSL to Japan’s JFE Steel for ₹15,000 crore. As part of the transaction, the Sajjan Jindal-led company recognised net deferred tax assets of ₹1,439 crore after reassessing previously unrecognised tax credits. The company said it is probable that carried-forward unabsorbed depreciation will be offset against expected capital gains from the BPSL stake sale.
On a pre-tax basis, JSW Steel’s profit rose 23.6 per cent to ₹1,457 crore in Q3 FY26 from ₹1,178 crore a year earlier, indicating underlying operational improvement beyond the exceptional tax gain.
The company reiterated that the strategic partnership with JFE Steel is expected to lead to significant deleveraging of up to ₹37,000 crore and is likely to be completed by the third quarter of FY27.
Separately, group company JSW Energy also reported strong earnings growth. The power producer posted a 150 per cent year-on-year rise in consolidated net profit to ₹420 crore in the December quarter, compared with ₹168 crore in Q3 FY25, driven largely by higher revenues. Total revenue for JSW Energy surged to ₹4,255 crore from ₹2,640 crore a year earlier, reflecting capacity additions and improved power realisations.
