JSW Steel Q2 Results: Net profit rockets 225% YoY to Rs 5,279 crore; revenue rises 21%

The shares of the company however dropped around 3% to trade at Rs 1,182 apiece on NSE following the release of the results.JSW Steel’s total expenses increased over 12% YoY to Rs 48,168 crore in the second quarter of FY27, from Rs 43,004 crore reported in the year-ago period. The company said its EBITDA rose 39% YoY to Rs 9,941 crore, excluding the forex gains and losses on long-term borrowings net of inter-company receivables.

Its adjusted EBITDA margin stood at 18.3% in Q2 FY27, as compared to 17.2% in Q2 FY27, driven by higher volumes, partly offset by higher coking coal prices and lower realisationsThe JSW Group company reported the highest-ever crude steel production of 7.27 million tonnes, as well as the highest ever saleable steel sales of 7.46 million tonnes.JSW Steel on macroeconomic conditionsGlobal economic activity remained resilient during the quarter despite continued geopolitical uncertainties and resulting inflation, JSW Steel said.

The IMF recently upgraded its global growth forecast for 2026 by 10 basis points to 3.1%, while maintaining its 2027 outlook at 3.4%. Al-led investments, improving manufacturing indicators and resilient consumer demand have provided support to growth, it added.Live Events“However, ongoing conflict in the Middle East continues to create uncertainty through its impact on energy markets and commodity prices, while inflation and fiscal concerns have kept bond yields elevated and prompted major central banks to hike rates,” the company said.Among major economies, the US continues to demonstrate resilience, aided by ongoing investments in technology and artificial intelligence, and strong consumer spending, JSW Steel added.

In China, robust exports have supported manufacturing activity, while recent policy measures aimed at the real estate sector and infrastructure development are expected to provide support to domestic growth amidst weak demand, it further said.In this background, JSW Steel feels that India remains a bright spot in the global economy, with growth being driven by resilient domestic demand, a robust investment cycle and improving industrial activity.

“Reflecting confidence in the economy's underlying strength, the RBI has raised its FY27 GDP growth forecast to 7.1% from 6.7% earlier. Industrial production and exports have remained healthy despite external headwinds, with engineering exports continuing to demonstrate resilience. Momentum in the automotive sector also remains strong, supported by healthy consumer demand and sustained economic activity.”Highest-ever steel salesJSW Steel steel sales were highest ever at 7.46 million tonnes, up 13% YoY and 19% QoQ.

Sales of flats and VASP were highest ever, up 16% and 11% YoY, respectively. Domestic sales stood at a record 6.29 million tonnes, up 12% YoY and 18% QoQ.The institutional sales volumes stood at 4.15 million tonnes, up 15% YoY. Sales to the auto sector were highest-ever, up 36% YoY. Exports stood at 9.8 lakh tonnes, contributing to 13% of JSW Steel’s sales from India operations for Q2 FY27.(You can now subscribe to our ETMarkets WhatsApp channel)