JSW Steel Earnings Loom: Stock Nears Crucial Support, Q1 Results May Decide Next Big Move, Says SEBI RA

JSW Steel is expected to report strong Q1FY26 results on Friday, driven by improved realizations and lower raw material costs. According to reports, analysts estimate around 130% year-on-year growth in profit after tax, with revenue likely to rise by a modest 4%.

In the technical charts, the stock has been consolidating within a rising wedge pattern that has formed since February, as observed by SEBI-registered analyst Rohit Mehta.

JSW Steel shares are holding above key support levels in the ₹1,015 - ₹1,030 range, with a trendline extending upward from ₹920, Mehta said.

The price is nearing a key support level, and its next move, either a breakout or a reversal, could hinge on the upcoming results.

At the time of writing, the shares were up 0.5% at ₹1,038.10, just 3% shy of their all-time high of ₹1,072.

On the fundamentals front, the company’s recent performance in the March quarter presents a mixed picture. While sales fell 3.13% and profit before tax (PBT) declined by 14%, operating profit rose 1.8% on a year-on-year (YoY) basis. Sequentially, the results were far more encouraging with sales growing 8.3%, operating profit rising 10%, and PBT surging nearly 47%.

Shareholding trends show promoter confidence with their stake increasing from 44.84% to 45.31% in the March 2025 quarter. Foreign institutional investors (FIIs) trimmed their positions slightly, while domestic investors (DIIs) increased theirs.

However, JSW Steel’s relatively high valuation at 3.16x book value, modest ROE of 7.41%, and a low interest coverage ratio remain causes for concern, the analyst added.

Year-to-date, the stock has gained around 15%.

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