What is the projected margin hit for Indian steel companies in Q3 FY26?

Indian steel majors like Tata Steel and JSW are predicted to face a margin hit of Rs 1,530 per tonne in Q3 FY26.

Which factors are causing reduced steel margins in India?

Reduced margins are primarily caused by lower steel selling prices and increased costs of coking coal.

How will Q3 FY26 results affect JSW Steel's profitability?

JSW Steel's standalone EBITDA per tonne is expected to decrease by 19% QoQ and 3.6% YoY due to lower price realization and higher coal prices.

Home / Business and Economy / Steel Margins Squeezed: Q3 FY26 Outlook Grim

Steel Margins Squeezed: Q3 FY26 Outlook Grim

13 Jan

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Summary

Indian steel firms may see Rs 1,530 per tonne margin hit.
Falling steel prices and rising coal costs impact Q3 FY26.
JSW, Tata Steel, SAIL, and Jindal face significant EBITDA declines.

Steel Margins Squeezed: Q3 FY26 Outlook Grim

Indian steel majors, including Tata Steel, JSW, SAIL, and Jindal Steel, are projected to experience a substantial margin squeeze in the third quarter of fiscal year 2026. A Kotak Institutional Equities report forecasts a decrease of approximately Rs 1,530 per tonne, driven by a dual pressure of declining steel prices and escalating coal costs.

The report highlights that the selling price for most steel products saw a decrease of around Rs 2060 per tonne in Q3 FY26 compared to the previous quarter. While improved output and lower iron ore expenses offered some relief, these benefits were largely counteracted by the surge in coking coal prices, particularly affecting flat steel products.

Consequently, leading players like JSW Steel and Jindal Steel are expected to report significant year-on-year and quarter-on-quarter declines in EBITDA per tonne. Tata Steel and SAIL also anticipate reduced profitability per tonne, despite potential volume growth. Investors are now closely watching upcoming results to gauge the full impact on net profits.