Indian major steel producer JSW Steel posted steady production growth in the first quarter of the fiscal year 2026-27 (April-June), with consolidated steel output climbing 2% quarter on quarter and 3% on the year to 6.59 million tonnes, according to the company's latest operational report.

Domestic Indian plant production stood at 6.35 million tonnes, edging up 0.3% on the quarter and 3% on the year. The firm's capacity utilization improved notably to 94% in the quarter, compared with 87% in the same period last year.

Supported by ongoing capacity expansion initiatives, JSW Steel has fully upgraded its Vijayanagar No.3 Blast Furnace, raising its annual capacity from 3 million tonnes to 4.5 million tonnes. Restarted in June, the furnace is currently running above 80% capacity and is set to lift the company's overall output from the second quarter of FY27.

In addition, the phase-three capacity expansion project at its Dolvi site, expanding annual capacity from 10 million tonnes to 15 million tonnes, is advancing steadily with construction and equipment installation in progress, scheduled for completion in September 2027.

On the sales front, the group saw record first-quarter steel product sales of 6.25 million tonnes. Although the reading fell 12% quarter on quarter on seasonal weakness, it marked a 4% year-on-year increase. Flat steel and high-value specialty product sales registered solid yearly growth of 9% and 8%, respectively.

The company's financial performance saw a sharp upturn, with net profit more than doubling year on year to 46.5 billion rupees ($483.4 million) in the quarter. Raw material costs rose 18% year on year to 245.9 billion rupees during April-June, driven by higher coal and iron ore prices.

Looking ahead, JSW Steel stated it will require minimal external funding to support its national capacity doubling plan. Meanwhile, the European CBAM mechanism is expected to have a limited impact on its business, given that 90% of its product sales target the domestic Indian market.