JSW Steel’s profit triples as sales hit a record

JSW Steel Limited (NSE: JSWSTEEL) reported Q2 FY27 net profit of ₹5,359 crore, compared with ₹1,646 crore a year earlier. Revenue increased 20.7% to ₹54,486 crore, while quarterly steel sales reached a record 7.46 million tonnes. What happened? JSW Steel reported EBITDA of ₹10,120 crore, up 42.2% year-on-year. Adjusted EBITDA stood at ₹9,941 crore, with an adjusted EBITDA margin of 18.3%. Steel sales rose 13% to 7.46 million tonnes, while crude steel production increased 5% to 7.27 million tonnes. The company also reduced net debt by ₹1,675 crore sequentially to ₹44,482 crore. Net debt to EBITDA improved to 1.28 times. However, higher coking-coal costs and lower realisations partly offset the benefits of higher sales volumes. My analysis The results show a combination of stronger demand, improved operating performance and better balance-sheet metrics. The 13% increase in sales volumes is particularly important because it demonstrates that earnings growth is not solely a consequence of higher steel prices. The improvement in EBITDA margin also suggests stronger operating leverage.