JSW Steel Q2 results for FY27 exceeded market expectations, with net profit rising 225.3% year-on-year. The Sajjan Jindal-led steelmaker benefited from higher sales and lower finance costs and depreciation. Revenue and operating earnings also surpassed analyst estimates.
Net profit attributable to the company's shareholders came in at Rs 5,279 crore, compared with Rs 1,623 crore in Q2FY26. The figure beat Bloomberg's estimate of Rs 4,350 crore.
Revenue from operations increased 20.7% to Rs 54,486 crore, above the estimated Rs 52,768 crore. Earnings before interest, taxation, depreciation, and amortization (EBITDA) rose 42.2% year-on-year to Rs 10,120 crore, beating the estimate of Rs 9,611 crore.
Key highlights:
- Net profit surged 225.3% year-on-year to Rs 5,279 crore.
- Revenue from operations rose 20.7% to Rs 54,486 crore.
- Steel sales volume increased 13% to 7.46 million tonnes.
Steel Sales Rise as Debt Levels Improve
JSW Steel's consolidated crude steel production reached 7.27 million tonnes in Q2FY27, up 5% year-on-year and 10% sequentially. Consolidated steel sales volume increased 13% annually to 7.46 million tonnes. Domestic sales stood at 6.29 million tonnes, up 12%, while exports contributed 0.98 million tonnes.
Institutional sales volumes grew 15% year-on-year to 4.15 million tonnes. The company also recorded its highest-ever sales to the automobile sector. Consolidated EBITDA per tonne stood at Rs 13,329, up 27% annually but down 11% sequentially.
The company's net debt fell by Rs 1,675 crore from June 30 to Rs 44,482 crore as of September 30. Net gearing improved to 0.39 times from 0.42 times in the previous quarter. Net debt-to-EBITDA also declined to 1.28 times from 1.46 times.
Capital expenditure reached Rs 6,266 crore during the quarter, taking first-half spending to Rs 11,136 crore. The company retained its FY27 capital expenditure outlook of Rs 22,000 crore to Rs 24,000 crore.
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India Operations and Expansion Plans
Revenue from JSW Steel's Indian operations increased 30% year-on-year to Rs 50,188 crore. Adjusted EBITDA rose 40% to Rs 9,636 crore, with a margin of 21.2%. Crude steel production grew 5% to 7.07 million tonnes, while sales increased 14% to 7.27 million tonnes. Capacity utilization across the combined Indian operations stood at approximately 88%.
The company is also developing a 0.5 MTPA steel recycling facility at Khopoli. Its baler was commissioned during the quarter, while the shredder is expected to be commissioned in Q3 FY27.
The board approved a 5 MTPA expansion at JSW Utkal in Odisha, involving an investment of Rs 16,150 crore, with commissioning targeted for Q1 FY31. It also approved an 8 MTPA pellet plant at Vijayanagar and additional facilities at Dolvi.
At Vasind, the company plans to invest in a 1.8 MTPA cold rolling mill complex and a 1.2 MTPA metal coating facility. These projects are targeted for commissioning by Q2 FY30.
JSW Steel shares closed down 2.62% at Rs 1,187 on the Bombay Stock Exchange on Friday, as the results were announced toward the end of trading hours.
