MANAGEMENT DISCUSSION AND ANALYSIS

A growing crisis in the Middle East escalated significantly by February 2026, clouding the world economic outlook, threatening to derail the growth momentum of the previous two years. In this backdrop, the IMF's April 2026 World Economic Outlook, ‘Global Economy in the Shadow of War’, forecast that the global growth would slow down to 3.1% in 2026 from 3.4% a year back.

The reference scenario assumes that the conflict turns out to be short-lived and that average crude oil price for the year settles into low 80s (dollar a barrel). If this assumption does not play out and the conflict or its after-effects drag on longer, then there is a substantial downside risk to the growth projections. The IMF forecasts for 2026 indicate a more pronounced slowdown in Emerging Markets and Developing Economies than in the Advanced Economies.

The conflict has impacted the world economy through various channels. The supply shock, particularly impacting the trade flows and production of oil, gas and derivative products, has been severe, causing spikes in energy prices and logistics costs, as well as many secondary quantity and price effects for various commodities down the value chain, including fertilisers, metal products, and packaging materials.

These effects are likely to reverse in a gradual manner, after the end of military operations, with likely continuation of some geopolitical risk premium into market prices and the lingering effect of physical damages suffered by energy facilities and certain industries in the region during the war.

The supply shock has stalled the process of wind-down of inflationary pressures caused by the previous supply chain disruption following the pandemic and then the Ukraine war. The IMF has projected global headline inflation to increase from 4.1% in 2025 to 4.4% in 2026. Inflationary risks during the crisis caused bond yields to harden and monetary policy expectations to turn cautious. While the US Fed was previously expected to continue lowering its policy rate (having cut the policy rate by 75 basis points in 2025), those expectations have been diluted after the war began.

Growth and economic activity is likely to suffer due to direct hit to operations in the Middle East (which accounts for 6%+ of the global economy in purchasing power parity terms), slowdown in exports to the region, supply chain disruptions in other parts of the world (particularly, Asia) due to reduced imports from the region, implications of inflation for demand, impact on tourism and related activities and implications of weak financial market sentiment and fragile risk appetite on investments and consumption. Duration of the crisis and the time taken for normalisation of the supply chains are, therefore, a critical determinant of the economic outlook for 2026 and beyond.

After the US Supreme Court in February 2026 ruled illegal the so-called ‘reciprocal tariffs’ slapped in 2025, the US government replaced those tariffs with tariffs under other legal provisions and launched trade investigations to restore the earlier rates that differed across countries. This has created a window of about 4-5 months, during which the country’s average effective tariff rate has reduced and tariff level is broadly similar for imports from different countries. While tariffs continue to impact the world economy, their impact has been somewhat diluted in 2026 by this.

But it has not been all about uncertainties. There have been some supportive factors for the global economy such as lagged effects of the rate cuts effected earlier in the US and Euro area, momentum of technology sector investments that would lead to productivity gains, and broadly supportive fiscal policies. Fiscal boost from tax incentives in the US, ramping up of infrastructure and defence spending in Europe and fiscal stimulus announced by Japan’s new government are expected to dilute the impact of war. As and when the ongoing military conflicts end, reconstruction of damaged infrastructure could provide impetus to economic activities.

Beijing has laid out supportive policies to back the Chinese government’s 2026 growth target of 4.5-5%. Early data trends during 2026 suggest recovery in the country’s fixed asset investments and strong industrial growth.

Indian economy

Indian economy defied the global trends, recorded strong growth of 7.7% in FY 2025-26, surpassing the 7.1% expansion in the previous year, according to the advance estimates of the National Statistical Organisation. Private consumption and capital formation both recorded improved performance. Consumption was helped by supportive policy framework, with personal income tax concessions for the middle class and rationalisation of GST rates, the latter especially helping the economy in the second half of the year.

Imposition of steep US tariffs affected merchandise exports, which recorded a minor increase during the year. Services exports, however, recorded a robust growth. Although current account deficit widened to some extent, it remained at a comfortable level.

Capital expenditure by the central and state governments expanded in FY 2025- 26, maintaining the momentum of public capex for infrastructure sectors. Fiscal consolidation continued, with the Centre’s fiscal deficit narrowing to an estimated 4.4% of the GDP, with tighter control on non-capex spending.

Inflation moderated substantially to the lower end of the RBI’s tolerance band, averaging just above 2% during the year. GST rate cuts and moderation of food inflation contributed to the low inflation outcome, providing policy space for the RBI to cut its key repo rate by 100 basis points during the year. The rate cuts were front-loaded in the first quarter.

The Indian economy continued on a strong footing with robust growth momentum and low inflation until the Middle East crisis flared up. The strong fundamentals helped the economy navigate through the effects of the crisis, related to supply chain disruptions and export challenges. The government has undertaken several policy measures to absorb some of the pricing effects and support exporters.

The crisis is likely to hit the growth momentum, increase inflationary risks and widen the current account deficit. The RBI has projected the economic growth to slow down to 6.9% in FY 2026-27 after three straight years of over 7% growth. While there is significant uncertainty with regard to the intensity and duration of the after-effects of the crisis, current projections indicate inflation rising above 4% and current account deficit widening to about 1.5% of the GDP. These shifts are directionally adverse, but the projected levels are still short of the levels that have caused macroeconomic instability in the past, and thus underscore the advantage of strong fundamentals at the outset of the crisis.

The Indian Meteorological Department (IMD), in its preliminary assessment, has forecast below-normal monsoon rainfall in 2026 because of El-Niño effects. This poses some risks to the outlook for agriculture and rural economy, after a robust trend in rural indicators in recent quarters.

Notwithstanding the near-term headwinds, India’s medium-term growth prospects continue to be encouraging. Recent economic reforms, including labour codes and GST rationalisation, bolster the competitiveness of Indian industries. The momentum of public capex continues, with the government budgeting 11.5% growth in capex to ₹12.2 trillion in FY 2026-27. The backdrop for private capex continues to be favourable, with healthy balance sheets, pick-up in credit growth and improving capacity utilisation levels.

Conclusion of recent trade deals such as those with the UK, EU and the UAE and potentially one with the US, augur well for India’s exports, particularly of labour-intensive manufacturing sectors.

These developments, together with the structural factors of urbanisation, demography and expanding middle class, place India firmly on the path towards Viksit Bharat, despite a possible dent to growth in FY 2026-27.

Following two years of decline in global consumption, the World Steel Association (WSA) projects a modest 0.3% growth in consumption to 1,724 MnT in 2026. The calculation is based on the assumption that the Middle East crisis resolves by the middle of the year. The WSA has also underlined that major steel markets in the world are not being impacted by the direct spillovers of the crisis. The WSA has projected a more pronounced growth of 2.2% in 2027.

Looking back at China, there could be a gradual narrowing of the contraction in steel demand in 2026, with the housing market correction nearing its bottom. China's exports and industrial production held well in 2025, despite the tariffs, and showed resilience in the beginning of 2026. Infrastructure investments in China too are expected to grow, making the non-property steel demand trend relatively stronger, and thereby blunting the impact of housing market correction, which itself could be narrower.

China's anti-involution policies, launched last year across sectors including steel, along with the imposition of export licensing rules in January 2026, are likely to continue, guiding the industry towards capping production and discouraging capacity additions.

In the world outside China, steel demand is projected to rise 1.9% in 2026, with India emerging as a major contributor, making up nearly two-thirds of the demand growth, thanks to its strong domestic drivers.

Among other developing economies, consumption in the Middle East is projected to decline from 61.8 MnT in 2025 to 57.3 MnT in 2026, because of the regional conflict. Structural growth momentum in Africa is likely to continue, albeit from a smaller base.

Steel demand in the developed world is expected to grow in 2026, signalling further recovery from a period of slump in the post-pandemic period. Strong technology investments in the US and increased funding in public infrastructure in the US and in Europe, will be the underlying factors for this recovery.

Steel and raw materials - benchmark prices (Averages)

Trade in iron ore and metallurgical coal (MnT) for key geographies

Indian steel industry

The Indian steel industry put up a strong performance in FY 2025-26, consolidating its position as the world’s secondlargest producer while navigating global uncertainties and price pressures.

Growth in steel consumption remained healthy in India at 7.9% in FY 2025-26, following four consecutive years of double-digit growth. The strong demand led to the country’s steel consumption beyond 164 MnT during the year under review, while the per capita consumption crossed 115 kg. Both flat and long products (excluding stainless steel) recorded similar growth of 8.3% in FY 2025-26.

In the first half of the year, growth in government capex remained strong, while the second half was marked by a strong momentum in automobile and other consuming sectors that gained from GST reforms. The last quarter of the year saw a strong momentum, with consumption growing 10.5%.

Steel production outpaced consumption during the year with new capacities going on stream and crude steel output increasing by 11%. Growth in iron ore output lagged at 7.4%, leading to a sharp spurt in imports of iron ore, though from a small base.

Steel exports recovered in FY 2025-26, erasing much of the decline seen in the previous year. Imports, on the other hand, declined after the imposition of safeguard duty. India’s trade in steel was broadly balanced in FY 2025-26 after two years of being a net importer and recorded a small net export.

India continues to be a key driver of growth in the global steel industry. With strong prospects for steel-use sectors, the outlook for the industry remains robust. A double-digit growth in the government’s capital expenditure and continuing infrastructure upgrade in FY 2026-27 is likely to support the momentum in the steel industry. The budget allocation for public housing programmes has also been increased significantly. The outlook for private capex too is improving, with strong traction seen in commercial real estate, power generation, transmission capacity additions, data centres, defence, maritime, and so on.

The automobile industry, one of the key consumers of steel, ended FY 2025- 26 with a strong momentum, spurred by lower GST rates which accelerated the improvement in affordability for consumers. This momentum is likely to carry into the initial period of FY 2026-27, with low vehicle inventory being reported by dealers.

Industrial demand is expected to be driven by the overall economic momentum, as well as India’s trade deals with developed countries, which are likely to be operationalised in the coming quarters. The effects of supply chain shock from the Middle East crisis need to be watched, as these could cause some disruptions in the manufacturing sector growth.

Despite some of the macro headwinds, India’s finished steel consumption is expected to keep up the last year’s momentum. While the WSA projected a 7.4% rise in 2026, ICRA Ratings pegged the steel demand growth at 9-10% for FY 2026-27, supported by infrastructure push, and CRISIL estimated the demand growth at 5.5-7.5%. Beyond the macro headwinds in the near-term, India’s steel consumption buoyancy is likely to remain undented into the medium-term as well on the back of various structural tailwinds and the ongoing nation-building phase.

Steel exports from India may face some challenges in the near term because of the geopolitical crisis and increasing protectionism in many markets, including the CBAM in Europe. While the Indian steel industry remains in an expansionary phase, aligned to the National Steel Policy target of 300 MnT of crude steel capacity by the end of the decade (from an estimated capacity of 220 MnT as of FY 2025-26), increasing availability of iron ore in a commensurate manner remains a key. Government policies have been supportive in terms of auctioning of more mines and encouraging use of low-grade iron ore.

Opportunities for JSW Steel

Sales mix (%)

Domestic sales mix by industry (%)

FY 2025-26 highlights*

Domestic performance

In FY 2025-26, domestic markets continued to anchor the Company's performance, accounting for nearly 90% of total sales, with volumes growing strongly by 10% y-o-y. This growth was complemented by an exceptional performance in the Value-Added & Special Products (VASP) segment, which reached a record 17.6 MnT. Value-added volumes also scaled a new peak of 11.9 MnT, reflecting a healthy 6.0% y-o-y increase. The contribution of VASP to overall sales remained robust at 61%, highlighting the Company's strategic emphasis on differentiated, higher-margin products. Operational metrics also remained strong, with India operations achieving capacity utilisation of 92% excluding VJNR BF3 and 87% including VJNR BF3 during the year, indicating sustained efficiency and demand alignment.

JSW Steel plays a central, multi-dimensional role in India's growth story by acting as a critical enabler of infrastructure, manufacturing expansion, sustainability, and self-reliance. It supports large national projects and flagship programmes while scaling capacity aggressively to meet rising domestic demand and reduce import dependence. JSW Steel also supports MSMEs through consistent supplies thereby enabling them with further growth opportunities. At the same time, the Company is leading the energy transition in the steel sector through significant investments in green technologies and emissions reduction. Its large-scale investments are driving regional industrial development, creating substantial employment and ecosystem benefits, and strengthening India's capabilities in strategic sectors such as defence, mobility, and energy. Overall, JSW Steel is not just supplying steel but actively underpinning India's economic growth, industrial competitiveness, and long-term sustainability.

Export performance

Achieved an overall export sales volume of ~2.80 MNT For FY 2025-26, with Europe emerging as the largest market contributing nearly 66.8%, followed by Asia (18.5%) and the Middle East (8.9%).

Within JSW Steel, recorded exports of over 2.09 MnT, led by strong performances in HR Coil (1.13 MnT), CR Coil (0.326 MnT), As-Cast Blooms (0.294 MnT), HRPO (0.103 MnT), GI (48 KMT), and Wire Rod Coil (0.117 MnT). Successfully diversified sales across Africa, Asia, Europe, the Middle East, and North America, while strengthening product penetration in both flat and long steel categories.

JSW Coated contributed approximately 633k MT, driven by robust sales of PPGL (222k MT), GI (201k MT), GL (91k MT), and Tin Plate (77k MT), demonstrating strong demand for coated and value-added steel products across Europe, the Middle East, South America, and Asia.

JSW BPSL achieved exports of over 70 KMT, primarily through HRC and CRCA sales in Asian markets, further supporting the group's international market presence.

The year's performance highlights successful global market expansion, strong product diversification, and sustained growth across premium, coated, and value-added steel segments, reinforcing the Company's leadership in international steel exports.

Product performance

JSW Steel has consistently reinforced its strategic focus on enhancing the share of Value-Added & Special Products (VASP) in its overall portfolio, backed by continuous investments in innovation and product development. This approach translated into strong momentum in FY 2025-26, with VASP volumes registering a healthy 14% y-o-y growth. As a result, VASP contribution to the total sales mix improved to 61%, reflecting the Company’s clear shift towards higher-margin, differentiated offerings and a more value-driven growth strategy.

Mix

Product mix

4.1.1

FLATS

Flat products — covering Hot-rolled, Cold-rolled, Colour-coated, Galvanised, and Galvalume variants — accounted for a dominant 75% of total sales in FY 2025-26. The segment recorded a strong 13% y-o-y growth, highlighting its pivotal role in shaping the Company’s revenue mix and overall performance.

Contribution to overall product portfolio

Hot Rolled

JSW Steel is well regarded for the high quality and consistency of its hot-rolled product range. Produced using advanced manufacturing technologies at its Hot Strip Mills in Vijayanagar, Dolvi, and JJSL, along with the PM Plate Mill at Anjar, these products serve a wide array of applications spanning structural, general engineering, and infrastructure projects. Catering to key sectors such as industrial and engineering, automotive, energy, and capital goods, hot-rolled products comprised approximately 38% of the Company’s total product mix in FY 2025-26.

JSW Steel offers a wide range of HRC product with thicknesses spanning 2 to 16 mm and widths from 900 to 2900 mm, enabling it to meet diverse customer requirements across applications. Leveraging its multi-location manufacturing footprint and strong distribution capabilities, the Company ensures reliable just-in-time deliveries, which supports consistent demand across automotive, OEM, and retail segments. This breadth of product offerings and supply flexibility positions JSW Steel competitively in the market.

Contribution to overall product portfolio

Key projects served in FY 2025-26:

Water pipeline constructions

Contributed to ~1,722 km

Major projects served

• NCC/L&T water irrigation project, Mathura.
• Gujarat–Narmada river linking project
• Rajiv Gandhi Canal project, Rajasthan
• Aurangabad water supply project,
• MP water linking project
• Telangana & Karnataka water irrigation projects

Oil & Gas pipeline constructions

Contributed to ~627 km

Major projects served in API category

• GAIL
• CGD projects

TMT

TMT bars, produced from virgin iron ore to ensure high purity, deliver a strong combination of strength and ductility. Manufactured using the advanced HYQST process, these products are recognised for their superior quality attributes, including excellent weldability, enhanced corrosion resistance, and high malleability.

Supported by robust infrastructure-led demand, the Company supplies TMT bars to several marquee projects spanning road construction, metro rail networks, and large-scale developments in sectors such as construction, power, and nuclear energy.

During the year, TMT sales grew by 14% y-o-y, enabling the Company to secure a 6% share of the domestic market through improved services, on time deliveries with multi locational manufacturing facilities driving sales for Retail & OEM.

Wire rods

Engineered using advanced manufacturing technologies to ensure superior quality, JSW Steel’s wire rods produced at Vijayanagar serve a wide range of industries, including automotive, engineering, welding, and machining. With the continued expansion of India’s automotive and industrial sectors, demand for these versatile products remains on a steady upward trajectory.

The Company has strengthened its focus on Electrode and High Carbon steel grades, delivering strong performance with annual growth of 26% and 32% respectively. These specialised offerings continue to effectively address the evolving requirements of electrode manufacturing and auto component industries.

During the year, wire rod sales grew by 3% y-o-y, enabling the Company to capture a 13% share of the domestic market with forays into value added products like High Carbon, WR3 for applications such as Wire Drawing, Tyre cord, Welding electrodes.

Low relaxation prestressed concrete steel strands

The 0.144 MTPA Low Relaxation Prestressed Concrete (LRPC) strand facility at Vijayanagar is now fully operational, with JSW Steel supplying these high-performance strands across a wide range of marquee infrastructure projects. These include the Mumbai–Ahmedabad High-Speed Rail (India's first Bullet Train) project, along with road projects executed by the National Highways Authority of India (NHAI), NCRTC, Metro rail projects, Sea-links, and projects undertaken by state road development corporations, NHPC, SITCO, CIDCO, and RLDA, etc.

In FY 2025-26, the Company expanded its product portfolio with the introduction of PE-coated LRPC strands, primarily used in the building segment, rock anchoring, and soil stabilisation applications. Neotrex has gained strong traction in the building segment, where the business had shown approximately ~60% y-o-y growth in the space of IT parks, data centres, malls, multiplexes, premium residential projects, etc.

Due to the growing I&C segment, LRPC strands are seen as a convenient and technological alternative to increase the strength of the structure by reducing number of pillars and enabling longer spans which is helping the cost and reducing the construction time. Momentum is seen in the requirements coming from 2 tier and 3 tier cities. Also, due to rapid urbanisation, 'Precast technology' is increasingly getting adopted in India, helping industry to speed up construction by 30-35% compared to traditional methods. It improves quality, reduces onsite labour, and creates durable, eco-friendly structures.

Alloy steel

JSW Special Alloy Steel, produced at the Salem and JJSL facilities, delivered strong growth in FY 2025-26, with alloy longs sales increasing by 17% y-o-y and accounting for 6% of the overall product mix. Within this segment, Bearing Steel sales registered an impressive 20% growth.

The Company’s continued focus on developing new grades has enhanced its ability to cater to a wide range of applications across the automotive, textile machinery, and general engineering sectors. During the year, the Salem plant achieved several product approvals from customers in strategic industries such as automotive, oil & gas, and mining. Its strategically advantageous location further supports operational efficiency through lower logistics costs and faster delivery timelines.

Effort of localisation and new product development has propelled the requirement in Alloy Steel to segments such as Defence, Railways, and Automobile. JSW Steel’s ability to produce high quality steel backed by R&D team will enable India to become one of the largest manufacturers of Bearing Steel as an alternative to China.

Marketing initiatives

In line with its commitment to customer centricity, the marketing function has undertaken a transformative journey to strengthen engagement and responsiveness across both digital and physical touchpoints. Through strategic enhancements to its websites — covering the full product portfolio and offering dedicated engagement for MSMEs — alongside dynamic social media campaigns and a more agile customer contact centre, the Company has enabled seamless and personalised customer experiences.

At the same time, branded retail outlets have been revitalised to better reflect the brand’s identity and foster stronger in-person interactions. These integrated initiatives ensure that every customer touchpoint, whether digital or physical, consistently reinforces the Company’s focus on understanding and serving its customers more effectively.

Privilege Club

JSW Privilege Club has evolved into a robust influencer ecosystem, surpassing 1,00,000 enrolled members in FY 2024-25, reflecting strong grassroots reach, trust and relevance. Comprising fabricators, masons, contractors and retailers, this network is pivotal to influencing last-mile purchase decisions and expanding retail presence. Engagement is sustained through a year-round rewards programme, with landmark recognition events such as the Tamil Nadu ceremony and the felicitation of top national performers with over seven years of association.

The initiative also shows social commitment, with 100 students awarded scholarships of ₹10,000 each, supporting families and future generations. Stressing on inclusion and capability building, women fabricators from the North East were recognised for their contributions, while the Eklavya Training Academy delivered impactful learning programmes with strong nationwide demand. Experiential engagements, including the Superstar Meet at Imagica, brought together participants from key regions, fostering connection, recognition and product awareness.

Collectively, these efforts have created a highly engaged, inclusive and future-ready influencer network that continues to drive brand loyalty and growth.

Digitalisation

• Enhanced fleet utilisation through real-time tracking of earthmoving equipment, enabling optimised deployment and accurate billing.
• Implemented digital twins for critical conveyors and coke oven exhausters, enabling live visualisation, improving reliability and reducing downtime.
• Deployed predictive and prescriptive maintenance through 1,600 CBM sensors, delivering reduced breakdowns and saving of RMHS downtime.
• Established centralised production and monitoring dashboards with integrated analytics to enable real-time performance tracking and informed decision-making.
• Strengthened operational safety and efficiency through vision analytics for foreign object detection, belt monitoring and visual intelligence to prevent process deviations.
• Introduced intelligent automation across operations, including motorised valve controls, robotic systems, auto electrode jointers and automated marking solutions.
• Advanced process optimisation through continuous online monitoring of mixed gas calorific value, auto-calibrated valve systems and precision temperature measurement technologies.
• Enhanced equipment reliability through condition monitoring of critical assets, smart transformer breathers, intelligent UPS battery management and integrated communication technologies.
• Deployed AI and machine learning solutions for pellet sizing, raw material identification, slag detection, emissions monitoring and predictive asset analytics.
• Implemented Internet of Thingsenabled tracking and monitoring systems, including torpedo tracking, RFID-based movement monitoring and ultrasonic pipeline health assessment.
• Accelerated digital transformation across mills through automated reporting, asset performance management, real-time insulation monitoring and intelligent lubrication systems.
• Strengthened safety and resilience through smart monitoring systems, including personnel tracking, PPE compliance analytics, fire detection, thermal surveillance and rapid IT recovery infrastructure.

Health and safety initiatives

• Workplace incidents have been significantly reduced by 68%, reflecting a strong focus on safety practices.
• Safety observation compliance has improved to 93.5%, indicating heightened awareness and adherence to protocols.
• A total of 175 man-machine interface projects have been completed to enhance operational safety.
• Structural strengthening has been carried out across all RMHS areas to improve asset integrity and safety.
• Two new De-Dusting System (DDS) systems have been commissioned in the RMHS 5 MT area to further strengthen safety and operational reliability.
• Coke 3, Coke 4, CDQ, CDQ Power Plant and Coke Oven 5 have been recognised as Zero LTI departments for 2025.

Awards

• Received the IBM Star Rating Award from the Ministry of Mines, Government of India, in FY 2025-26 for Rama Mines (three years in a row) and Tunga Mines.
• Honoured with the Mining Innovation Award at Bhadra Mines by the Federation of Indian Mineral Industries (FIMI).
• JSW Steel, Vijayanagar Works, received the IIM National Sustainability Award for excellence in product development, profitability, human resource management and environmental performance.
• Vijayanagar Works was also recognised with the National Award for Manufacturing Competitiveness (NAMC) 2024-25 for manufacturing excellence.
• Awarded for best practices in bund management and waste utilisation at Vijayanagar.
• VJNR Works secured First Place at the Confederation of Indian Industry (CII) EHS Innovation Awards 2025.
• Recognised as National Winner (Gold) at the IAQ Quality Sustainability Awards 2025.
• Conferred with the 5-Star Platinum State Level OHS&E Award by the World Safety Organization.
• Honoured as Apex Runners-Up at the India Green Manufacturing Challenge (IGMC) 2025 among Indian manufacturing industries.
• Awarded Winner under the Large B category for ‘Water Management – Within Plant Premises’ at the ASSOCHAM National Water Awards 2025, presented at the India Water Leadership Conclave 2025 in New Delhi.

Digitalisation

• Deployed a digital communication and attendance system (Hazir) to enhance monitoring and engagement.
• Piloted the e-PTW system in CPP, with further rollout initiated across other departments.
• Implemented a digital Process Safety Management (PSM) portal to improve data efficiency, reduce approval timelines and minimise paperwork.

Environmental initiatives

• Improved water stewardship through reduced specific water consumption, record water reuse and lower marine discharge.
• Maintained 100% waste utilisation while increasing circular use of industrial by-products, including GCP sludge and LD slag.
• Installed and operationalised a Municipal Solid Waste Management facility.
• Achieved emissions performance ahead of targets, supported by commissioning of a new Electrostatic Precipitator (ESP) and Maximised Emission Reduction of Sintering (MEROS) technology at Sinter Plant-1.
• Strengthened biodiversity initiatives through the plantation of 22,543 trees during the year.
• Improved energy efficiency through fuel substitution, gas optimisation and process enhancements across Sponge Iron, Pellet, Sinter and Blast Furnace operations.
• Enhanced process efficiency through waste gas recirculation, flexible fuel utilisation and improved heat rate performance.
• Expanded low-carbon energy generation through steam recovery and utilisation of by-product gases.
• 99 MW wind power capacity to strengthen renewable energy contribution, reducing overall carbon emissions.

Capacity expansion

• The MEROS-based waste gas recirculation and bag filter system at Sinter Plant 2, commissioned in February 2026, has reduced coke consumption and lowered stack emissions, significantly enhancing environmental compliance.
• The BF-2 dehumidifier system, commissioned in October 2025, has improved blast furnace efficiency by reducing coke rate, increasing PCI injection, lowering blower power consumption and enhancing overall operational reliability.

• The revamping of CDQ 2 and 3 chamber refractory, completed in July 2025, has restored thermal efficiency, improved heat recovery and ensured stable, reliable plant operations.
• The Phase 2 refractory store, commissioned in October 2025, has added ~17,000 MT storage capacity while improving inventory management and material handling efficiency.
• The BFG injection system in the CDQ boiler at Coke Oven 2, commissioned in November 2025, has enhanced steam generation, improved waste heat utilisation, enabled stable power output and achieved a payback within approximately four months.

Awards

• Salem Works was recognised as a ‘Sustainability Leader’ in the Mega Business – Metals category at the Frost & Sullivan Sustainability Awards 2025, reflecting strong ESG performance.
• The Blast Furnace team won the MQH Best Practice Trophy in the manufacturing category at the IMC Ramakrishna Bajaj forum.
• The ‘Bio-char usage with PCI in Blast Furnace’ project secured the Silver (Runner-up) award at the nationallevel ISQ Quality & Sustainability Awards 2025.
• Sixteen teams from Salem Works participated in CCQC 2025 and won 16 Gold awards in the First Category.
• 10 teams were nominated at NCQC 2025 and all achieved Par Excellence awards in the First Category at the national convention held in Noida.
• Salem Works received the Champion Award under the water management category at the 19th Exceed Environmental Awards & Conference 2025.
• The facility was also honoured with the “Champion (Outstanding)” award for water management at the Exceed Environment, CSR and HR Awards 2025 by the Sustainable Development Foundation.
• Salem Works received the Best RM Supplier Award from M/s Sundaram Fasteners Limited for excellence in quality, technical support and ontime delivery.
• Teams from BRM, BLM and COP won the ‘Par Excellence’ award at the 11th National Conclave on 5S organised by QCFI.
• The unit received the ‘Award of Honour’ from the National Safety Council, Tamil Nadu Chapter, at the Occupational Health and Safety Awards 2023.
• Salem Works won multiple Tamil Nadu State Safety Awards for the years 2022 and 2023 across two categories.
• The Business Excellence Team secured the Gold Award at the TQM Summit 2026 organised by QCFI in Pune.
• Salem Works was honoured with the ‘Green Champion’ award for FY 2025-26 for its environmental and water initiatives through CSR in Salem district.
• A team from Salem Works secured the 2^nd Runner-up position at the national-level CII Manufacturing Quiz during the 6^th Edition of the CII Master Mind Quiz.
• Hot Rolled automotive steel, Annealed automotive steel and As-cast automotive steel produced at Salem Works qualified for the CII GreenPro Ecolabel, recognising them as certified green products.

Environmental initiatives

• Improved energy efficiency and process optimisation through installation of VVVF/VVFD drives across blast furnace, sinter and lime plant operations.
• Enhanced operational reliability and maintainability through equipment redesign and optimisation initiatives across process units.
• Reduced freshwater consumption through large-scale utilisation of treated wastewater across operational and greenbelt applications.
• Advanced circularity through recycling and full in-house utilisation of process by-products, including slag, dust and ash across industrial and restoration applications.

• Strengthened dust and emission control through installation and upgradation of fogging, bag filter and dedusting systems across key plant locations.

Awards

• Recognised by the Greentech Foundation for outstanding achievements in environmental protection.
• Type 1 and Type 2 products have been included under IS 14650:2023 standards.

Health and safety initiatives

• Inaugurated a state-of-the-art Safety Experience Centre for immersive induction training on high-risk standards.
• Implemented Electronic Permit to work in CPP.
• Implemented 04 elements of PSM in the Plant.
• Deployment of 69 Safety Stewards and 89 Fire fighters to ensure Safety.
• Deployment of 06 Certified Rescuers and 04 certified trainers.
• Fire NOC for 13 buildings obtained.
• Calibration of all the Tools and tackles done twice a year.
• Conducted training and created 5 Bow Ties for different Departments.
• Recorded 2,25,507 safety observations across operations, reinforcing a proactive safety culture.
• Achieved 2,96,161 man-hours of safety training, enhancing workforce preparedness.
• Completed skill assessments for 20,399 employees to identify and bridge competency gaps.
• Enhanced road safety with Automatic Number Plate Recognition (ANPR) cameras, speed radars, poles, and blinker lights.
• Procured 2 Fire Trucks and installed 450 ABC modular, 950 A type, B type, C type fire extinguishers in cable galleries.
• Conducted Safety culture survey covering 14,100 employees.

Awards

• Received prestigious National Energy Conservation Award (Certificate of Merit) from the Bureau of Energy Efficiency (BEE), Ministry of Power, Govt of India on December 14, 2025 at New Delhi.
• JSW Group is recognised nationally for driving large-scale employment in Odisha. Received the “Star Employment Award 2024-25” (Conventional Industries) for generating highest numbers of employment in various categories. This recognition reinforces JSW Group’s commitment to driving inclusive growth, empowering communities and shaping socio-economic progress.
• This year, a total of 46 teams participated in CCQC 2025 Rourkela and 44 teams achieved the prestigious Gold Award & 2 teams received the Silver Award.
• Bhushan Power & Steel Limited Participated with 28 Teams in the NCQC – Greater Noida, and awarded 17 Par-Excellence & 11 Excellent Awards.
• TPG Re-Accreditation obtained from PRI- USA with Zero NC which resulted in 6 months additional validity.
• ‘Well Known Steel Maker’ Certification obtained from Central Boiler Board for 5 years.
• In the CII’s Industry Carnival-2026 three teams from JSW BPSL declared winners (1 team from CSP Secured 1^st position in the state in Manufacturing Category, 1 team from BF-1 secure 2^nd position in Special Category in the state, and 1 team from Oxygen Plant secure 3rd position in the Manufacturing Category in the state.
• Eight departments obtained 5’S certification.
• Recognised as ‘Great Place to Work’ consecutively for 4 years with best in group figures.

Competitive strengths

• JSW Steel Coated Products Limited operates world-class manufacturing facilities across strategically located at eight sites in India, with a strong geographical footprint spanning from Pulwama in the North to Maharashtra and Central India, enabling superior market access and servicing capabilities.
• The Company offers one of the industry’s widest coated steel portfolios across galvanised, galvalume, colour-coated, CRCA, and tin mill products, catering to diverse end-use segments and customer requirements.
• A robust distribution ecosystem comprising over 44,000 fabricators, 15,000 retailers, and 210 distributors enables deep market penetration across urban and rural markets.
• Its integrated channel network ensures high serviceability, faster turnaround times (TAT), efficient distribution, and strong customer responsiveness across regions.

• The Company has built strong brands positioned across premium, popular, and mass-market segments, strengthening visibility and customer preference across diverse market categories.
• Customer engagement is enhanced through initiatives such as Shoppe Connect, Experience Centres, and structured influencer engagement programmes.
• A strong fabricator and influencer ecosystem, supported through continuous training and capabilitybuilding initiatives, remains a key differentiator for the business.

Environmental initiatives

• Progressed green hydrogen sourcing and fuel utilisation trials across plants to support decarbonisation and clean energy transition.
• Strengthened biodiversity management at Vasind through biodiversity quantification and adoption of a No Net Loss (NNL) approach.
• Advanced ecological restoration at Vasind through development and maintenance of a Miyawaki forest, with 12,000 plantations completed in 2025.
• Completed ResponsibleSteel Stage-1 Site Certification Audits across multiple locations, reinforcing alignment with global ESG standards.
• Achieved EPR registration across all coated sites, ensuring regulatory compliance and responsible product stewardship.
• Maintained strong circularity and climate performance through high waste recycling and controlled GHG emission intensity.
• Enhanced environmental transparency through completion of Life Cycle Assessment (LCA) and Environmental Product Declaration (EPD) initiatives.
• Strengthened sustainability governance through streamlined KPI reporting and digital implementation of the Sofi platform across locations.

Health and safety initiatives

• Achieved an LTIFR of 0.16 across operations, reinforcing a strong safety culture across coated operations.
• Successfully deployed ePTW (electronic Permit to Work) systems and advanced safety digitalisation initiatives across all coated plants.
• Progressed multiple Man-Machine Interface (MMI), AI-enabled surveillance, and Process Safety Management (PSM) initiatives to strengthen workplace safety standards.
• Continued implementation of HAZOP studies, Pre-Startup Safety Reviews (PSSR), and Management of Change (MOC) frameworks across operations.
• Strengthened employee capability building through large-scale safety leadership and behavioural training initiatives including Subject Matter Expert (SME), TTT, and “Lead the Change” programmes.
• Advanced employee wellbeing and quality-of-life initiatives through township and infrastructure development projects across locations.

Capacity expansion

• Progressed plans for two new galvanising lines at Khopoli to strengthen value-added coated steel capacity with a 0.36 MTPA Galvanising & 0.50 MTPA Zero Spangle and Zn-Al-Mg Coating facilities.
• Setting up another 0.36 MTPA Galvanising and Galvalume Coating Line and 0.20 MTPA Tinplate Complex at Rajpura, to support growing demand in packaging sector.

Awards

• Vasind was awarded “Champion Emerging” in the Steel Sector at the 19^th Exceed Environment Awards 2025.
• The Tarapur facility received the CII Blue Rating Silver distinction, becoming the first steel plant in India to achieve this milestone.
• Across the Coated division, the CII ITC Sustainability Awards 2025 recognised the business with a Significant Achievement Award in the Environment Domain for the first time.
• At Tarapur, the location was honoured with the CII Excellent Energy Efficient Unit Award, reflecting its strong focus on energy performance.
• At Kalmeshwar, the facility received the CII Energy Efficient Unit Award, reinforcing its commitment to operational efficiency.
• At Tarapur, excellence in energy management was recognised with the SEEM Platinum Award.
• At Kalmeshwar (KLM), the Apex India Platinum Award was received for Excellence in Energy Management.
• At Tarapur, the 18^th State Level Energy Conservation & Management Awards recognised the location with a Certificate of Merit.
• Across Vasind, Kalmeshwar, Dhar and Pulwama, multiple teams secured “Gold” and “Par Excellence” awards at ICQCC and NCQC competitions, showcasing a culture of continuous improvement.

Overseas operations

Environmental initiatives

• Mingo Junction became an ISO 14001 certified facility in February, 2026. It is actively pursuing the ISO 45001 certification in FY 2026-27.
• Mingo Junction achieved specific greenhouse gas emission (Scopes 1+2) of 0.41 tCO₂e/tcs. With the completion of the upgrades in FY 2026-27, the emissions are expected to reduce further.
• USDOE awarded JSW USA for achieving more than 25% reduction in energy intensity from that in 2019.
• Developed "Green Edge" steel plate product that meets the Buy Clean California Act (BCCA) Global Warming Potential (GWP100) threshold.

Health and safety initiatives

• Mingo Junction is actively pursuing the ISO 45001 certification in FY 2026-27.

Invested towards health and safety

Capacity expansion

JSW USA has undertaken a comprehensive capital expansion project which includes the installation of a Vacuum Tank Degasser (VTD) and Caster Dynamic Soft Reduction technology (DSR) at its Mingo Junction facility. Commissioning of the upgrades to the caster were completed in FY 2025-26. The commissioning of the VTD will be completed in FY 2026-27. In addition to improving the quality of existing product offerings, the VTD and DSR projects will allow the Mingo Junction facility to access the growing markets of HRC, support API applications and produce domestic slabs for all requirements of the Baytown plate mill including heavy plate and line pipe.

The upgrades will further insulate JSW USA from any offshore dependence for its semifinished raw materials. The Baytown plate and pipe mills are also in the process of modernising their existing facilities. The first phase of the plate mill modernisation was completed and commissioned in FY 2021-22. The second phase is expected to be commissioned in FY 2026-27. In addition to offshore wind, this capital expansion will enable the Baytown facility to produce plates for applications including heavy plates for pressure vessels, bridges, mining and agricultural equipment, shipbuilding and offshore structures for oil and gas production.

Environmental initiatives

• Reduced water and electricity usage through modernisation of the distribution network.
• Continued drive towards energy efficiency with the installation of low-consumption LED lighting.
• Secured environmental clearances for the rail rolling mill modernisation project.
• Reused treated wastewater from the city’s sewage plant to replenish closed-loop cooling systems.

Health and safety initiatives

The Company has achieved the targeted parameters.

Other non-current assets increased by ₹697 crore to ₹7,621 crore primarily due to an increase in the capital advances by ₹925 crore partially offset by ₹187 crore due to reduction in GST input tax credit receivables.

Other current assets decreased by ₹481 crore to ₹6,203 crore on primarily ₹1,161 crore due to reduction in GST input credit avail for set-off by partially offset by ₹820 crore account of an increase in advances to suppliers.

6.1.17 Inventories

Inventories declined by ₹2,191 crore to ₹32,765 crore during the year, primarily driven by liquidation of semi-finished and finished goods on account of higher sales volumes, particularly reflecting strong sales momentum in FY 2025-26. This was partially offset by an increase in raw material inventories. In the previous year, inventories of stores and spares and consumables were elevated due to a one-time impact arising from the commencement of operations at JVML, and advance procurement of critical spares for planned maintenance shutdowns in FY 2025-26. Consequently, production consumables and stores and spares inventories declined by ₹255 crore in the current year.

6.2.2 Revenue and EBITDA

Operating EBITDA

Net profit