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JSW Steel Shares Jump 5% on Record Profit Surge

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  Published in Stocks and Investing on Tuesday, February 17th 2026 at 4:52 GMT by moneycontrol.com
      Locales: Maharashtra, INDIA

New Delhi, February 17th, 2026 - JSW Steel, India's third-largest steel manufacturer and a cornerstone of the JSW Group, continues to demonstrate strong financial performance, with shares experiencing a significant jump of over 5% today following the release of its latest quarterly results. The company reported a staggering 198% surge in net profit, reaching INR717 crore for the December quarter - a clear indication of robust health in a traditionally cyclical industry. This growth, while impressive, begs the question: is this a sustainable trend, and what factors are positioning JSW Steel for continued success?

This substantial increase in profitability is primarily attributable to a confluence of favorable market conditions. A key driver has been the elevated steel prices observed throughout late 2025 and early 2026. Increased demand, fueled by infrastructure projects and a recovering global economy, particularly in Southeast Asia, created a favorable pricing environment. However, the company didn't just benefit from 'what the market gave,' but also from astute cost management. A significant reduction in raw material costs, including iron ore and coking coal - a result of diversified sourcing strategies and long-term contracts negotiated during a period of lower prices - further amplified profit margins.

Revenue for the quarter also reflected positive momentum, rising by 11% to INR40,860 crore. This growth demonstrates JSW Steel's ability to not only maintain market share but also capitalize on the increasing demand. The company's integrated business model, spanning the entire steel value chain from iron ore mining to finished steel production, provides a crucial competitive advantage, allowing for better control over costs and supply.

Brokerage Perspectives & Future Targets

The strong results have garnered positive attention from market analysts. Motilal Oswal maintains a 'Buy' rating on JSW Steel, with a target price of INR980, reflecting confidence in the company's long-term growth prospects. ICICI Securities also remains optimistic, retaining an 'Add' rating but revising their target price upwards to INR850. Prabhudas Lilladher maintains an 'Accumulate' rating with a target price of INR840. While targets vary, the consensus points towards continued upside potential for JSW Steel investors.

However, analysts caution that sustaining this level of growth will depend on navigating several key challenges. Steel prices, while currently favorable, are subject to global economic fluctuations and demand-supply imbalances. Any significant slowdown in the global economy, particularly in key construction and manufacturing sectors, could exert downward pressure on prices. Monitoring raw material costs will also be crucial. Geopolitical events and supply chain disruptions can quickly impact the availability and price of essential resources.

Looking Ahead: Strategic Investments and Sustainability

JSW Steel isn't simply reacting to market conditions; it's proactively investing in its future. The company has been steadily expanding its production capacity, with ongoing projects aimed at increasing steel output by an estimated 20% over the next two years. These expansion plans are strategically focused on value-added steel products, catering to specialized industries like automotive, aerospace, and renewable energy - segments offering higher margins and long-term growth potential.

Furthermore, JSW Steel is increasingly emphasizing sustainability in its operations. The company has committed to ambitious carbon reduction targets and is investing heavily in green steel technologies, including hydrogen-based steelmaking and carbon capture utilization and storage (CCUS). This commitment not only aligns with global environmental goals but also positions JSW Steel favorably with investors increasingly focused on ESG (Environmental, Social, and Governance) factors. Recent advancements in carbon-neutral steel production, highlighted at the Global Steel Summit last month, indicate that JSW Steel is actively exploring and implementing innovative solutions.

Key Factors to Watch:

• Global Economic Conditions: A potential slowdown could significantly impact steel demand and prices.
• Raw Material Price Volatility: Maintaining cost control will be paramount, requiring proactive sourcing and hedging strategies.
• Geopolitical Risks: Events that disrupt global supply chains could affect raw material availability.
• Government Infrastructure Spending: Continued investment in infrastructure projects will drive domestic steel demand.
• Competition from Chinese Steel Manufacturers: Monitoring Chinese steel production and export policies is vital.

In conclusion, JSW Steel's recent financial performance is a testament to its strong fundamentals, strategic investments, and effective cost management. While external factors will undoubtedly pose challenges, the company appears well-positioned to navigate the evolving steel landscape and deliver sustainable growth in the years to come.