JSW Steel Ltd Q2FY27 Result Fundamental Outlook

JSW Steel delivered a robust Q2FY27 performance, driven by record sales volumes, improved realisations and better cost management. Revenue and net profit comfortably exceeded Bloomberg’s consensus estimates. Financial Performance: Consolidated revenue increased 20.7% YoY to ₹54,486 crore from ₹45,152 crore, surpassing estimates of ₹52,768 crore. Net profit attributable to owners surged 225.3% YoY to ₹5,279 crore against ₹1,623 crore, beating estimates of ₹4,350 crore. Sequentially, revenue grew 15% and net profit rose 13.5%. Operational Performance: Production reached a record 7.27 million tonnes (mt), up 5% YoY, while sales volumes hit an all-time high of 7.46 mt, rising 13% YoY. Domestic sales increased 12% to 6.29 mt, while automotive-sector sales surged 36%, reflecting strong demand. Profitability and Debt: Adjusted EBITDA stood at ₹9,941 crore, with an 18.3% margin, up 6% QoQ despite higher coking coal prices and lower realisations. Net debt declined ₹1,675 crore QoQ to ₹44,482 crore. Expansion Plans: The company approved a 5 mtpa expansion at JSW Utkal for ₹16,150 crore, a 5 mtpa expansion at Sambalpur through its JSW-JFE joint venture, an 8 mtpa pellet plant at Vijayanagar and expansion of its Mozambique coking coal mine to 9 mtpa. FY27 capex is projected at ₹22,000–24,000 crore. Investor Takeaway: Strong earnings growth, record volumes and improving debt levels strengthen JSW Steel’s outlook. However, elevated capex, coking coal prices, steel realisations and leverage remain key monitorables. Sustaining margins and generating healthy cash flows will be crucial for long-term performance.