JSW Steel flags coal cost risk after profit surge
JSW Steel warned that coking coal prices may rise USD25 a tonne in the October–December quarter, while quarterly profit jumped more than threefold to ₹5,279 cr. OI Charts data showed cautious futures positioning ahead of the 27 Oct expiry.
pre-market1 source ↓machine-written, see hownot a recommendation
- JSWSTEEL close
- ₹1,223
- On the day
- -1.48%
- Futures OI, long unwinding
- -0.1%
- Put-call ratio
- 0.63
- Max pain
- ₹1,220
JSW Steel warned that coking coal prices could rise by USD25 a tonne in the October–December quarter, increasing pressure on steelmaking costs even as the company reported a sharp improvement in earnings. Consolidated net profit rose to ₹5,279 cr for the quarter ended 30 Sep 2026, from ₹1,623 cr a year earlier, representing a more than threefold increase.
The warning matters because coking coal is a key raw material for steel producers. The company also expects iron ore prices to rise marginally, but plans to reduce the impact by using more domestic coking coal. Management said healthy domestic steel demand, supported by construction and infrastructure activity, should help offset some of the cost pressure. Domestic steel demand is expected to grow 7–8% in fiscal 2027. ⚙️
Key market figures:
• OI Charts data showed the stock at ₹1,223 on 21 Oct 2026, down 1.5% on the day, with traded volume of 12.5 lakh shares.
• The stock gained 3.9% over five sessions but remained down 3.6% over 20 sessions. Its 52-week range was ₹1,073 to ₹1,351.
• Futures open interest stood at 4.40 cr shares, down 0.1% on the day, indicating long unwinding. The futures price traded at a 0.2% discount to the underlying.
The derivatives setup points to cautious positioning ahead of the 27 Oct 2026 expiry. The put-call ratio was 0.63, while max pain stood at ₹1,220, close to the reported spot price. The largest call open interest was at ₹1,260, which marks an overhead positioning level, while the largest put open interest was at ₹1,180. These levels frame the near-term range traders are watching rather than confirming a directional outcome.
The next focus is whether higher coal costs are reflected in margins and whether domestic demand remains strong enough to protect profitability. Investors will also track further movement in coking coal and iron ore prices, the company’s domestic coal mix, steel prices and the expiry-related positioning around ₹1,180, ₹1,220 and ₹1,260. The earnings improvement supports sentiment, but the raw-material outlook remains a key risk for the steel sector. 🏗️
Source: Business Recorder, 24 Oct 2026
Not investment advice. For informational purposes only.