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Indian steel companies are expected to post stronger profits in the first quarter of FY26, thanks to rising steel prices and a decline in coking coal costs, despite weaker sales volumes.
According to analysts, EBITDA for leading firms like Tata Steel, JSW Steel, and Jindal Steel could grow by 2–16%, even as sales volumes declined by 11–12%. The profit boost comes from a 6.4% rise in domestic steel prices during the quarter and a 2% drop in coking coal prices, one of the industry’s key input costs.
Tata Steel recently reported a more than twofold increase in Q4 profits to ₹1,301 crore, citing reduced raw material expenses, including iron ore and coal. Similarly, safeguard duties imposed by the government helped lift domestic steel prices by over ₹3,000 per tonne, aiding margins.
Global trends are also supportive. A surplus in seaborne coal and moderated demand have kept international coking coal prices low, benefiting Indian producers.
However, the outlook is less optimistic for non-ferrous metal players. Analysts expect revenue and EBITDA in that segment to decline by around 8% and 18%, respectively, due to weaker pricing and input cost dynamics.
Looking ahead:
Despite volume pressures, Indian steelmakers are well-positioned for margin growth, powered by strong pricing, cost control, and supportive policy measures.
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