JSW JFE Kalinga Steel Reports First-Year Loss After ₹29,475 Crore Bhushan Steel Acquisition

Mumbai: JSW JFE Kalinga Steel Ltd reported a consolidated net loss of Rupees 0.05 crore for the period from April 26, 2025, to March 31, 2026, its first reporting period since incorporation, following the acquisition of Bhushan Power and Steel Ltd’s steel business undertaking. Consolidated revenue from operations for the period stood at Rupees 415 crore, while total income came in at Rupees 427 crore. The company completed the Rupees 29,475 crore acquisition through its wholly owned subsidiary JSW JFE Steel Ltd on March 27, 2026.

The company, formerly known as JSW Kalinga Steel Ltd, was incorporated in April 2025 and therefore does not have comparable previous-year financials. Consolidated operating expenses for the reporting period stood at Rupees 427 crore, including Rupees 193 crore in raw material costs, Rupees 91 crore related to inventory changes, and Rupees 30 crore in finance costs. Earnings per share for the period stood at Rupees 0.07.

Strategic JV with JFE Steel takes shape

During the reporting period, Japan’s JFE Steel Corporation invested Rupees 7,875 crore in the company as the first tranche of its investment under the joint venture agreement signed with JSW Group entities. Following the transaction, JFE Steel holds a 25 percent stake in JSW JFE Kalinga Steel on a fully diluted basis.

The company also raised Rupees 9,500 crore through listed non-convertible debentures comprising two series with maturities of five years and five years plus one day. The debentures carry a premium of 8.76 percent annually and were assigned an AA/Stable rating by CRISIL.

As part of the acquisition structure, the company invested Rupees 7,880 crore in equity shares of JSW JFE Steel Ltd and Rupees 7,910 crore through optionally convertible debentures linked to the Bhushan Power and Steel transaction. The company also issued Rupees 7,875 crore worth of compulsorily convertible debentures to Piombino Steel Ltd.

Balance sheet expands after acquisition

On a consolidated basis, total assets stood at Rupees 43,177 crore as of March 31, 2026, including property, plant, and equipment worth Rupees 29,221 crore and goodwill of Rupees 3,059 crore arising from the Bhushan acquisition. Total equity stood at Rupees 15,774 crore, while total borrowings were reported at Rupees 21,401 crore. Cash and cash equivalents at the end of the period stood at Rupees 258 crore.

The company said the purchase price allocation for the Bhushan Power and Steel acquisition remains provisional and will be finalised within the measurement period prescribed under Ind AS 103 relating to business combinations.

Disclaimer: This report is based on audited financial results and company disclosures and is not investment advice.