JSW Steel Q2 profit surges 225% as sales hit record high

JSW Steel Limited (NSE: JSWSTEEL) reported Q2 FY27 consolidated net profit attributable to shareholders of ₹5,279 crore, up 225% YoY. Revenue from operations increased 20.7% to ₹54,486 crore, supported by higher steel sales volumes and improved operating performance. Key Highlights • Consolidated steel sales reached a record 7.46 million tonnes, up 13% YoY. • Crude steel production increased 5% YoY to a record 7.27 million tonnes. • Reported EBITDA rose 42% YoY to ₹10,120 crore. • EBITDA margin improved to 18.6% from 15.8% a year earlier. • Net debt declined to ₹44,482 crore, with net debt-to-equity at 0.39x. • The company plans ₹22,000–24,000 crore in capital expenditure during FY27. My View JSW Steel delivered strong earnings growth, with profit increasing significantly faster than revenue. The most encouraging development is the 42% increase in EBITDA alongside record steel sales. This indicates improved operating profitability despite pressure from higher coking coal costs. However, the 225% profit increase should be viewed against a relatively low base in the previous year. Such growth rates may not be sustainable every quarter. The company's expansion plans also require substantial capital investment, making cash flow generation and debt management important. I believe maintaining EBITDA per tonne while expanding production capacity will be critical for long-term returns. What I'm Watching Next I will monitor steel realisations, coking coal prices, EBITDA per tonne and net debt in Q3 FY27. Execution of the planned ₹22,000–24,000 crore FY27 capital expenditure will also be an important milestone. Stance: Positive on operating performance and record sales, but cautious about commodity price volatility and capital expenditure requirements. Disclosure: I do not have any holding or position in the stock mentioned above. #JSWSteel #Q2Results #SteelSector #IndianStockMarket #StockAnalysis