Record sales lead to 225% profit surge for JSW Steel

Reported earnings before interest, taxation, depreciation and amortisation (Ebitda) was up 42.2% year-on-year at Rs 10,120 crore, beating estimate of Rs 9,611 crore. 3%. The adjusted Ebitda increased 39% y-o-y, and 6% driven by higher volumes and partly offset by higher coking coal prices and lower realisations, the steelmaker said. Consolidated Ebitda/tonne at Rs 13,329 was down 11% sequentially but was up 27% annually.

Consolidated crude steel production for the quarter stood at 7.27 million tonne, 5% higher than the same quarter last fiscal and 10% over last quarter. Consolidated steel sales volume for Q2FY27 stood at 7.46 million tonne, higher by 13% over Q2FY26. Domestic sales at 6.29 million tonne was 12% higher. Exports at 0.98 million tonne contributed 11% to the sales from the Indian operations for Q2FY27.

Institutional sales volumes at 4.15 million tonne increased 15% y-o-y. The company also recorded its highest ever sales to the auto sector, JSW Steel added. 39x in the September quarter compared to 0.42x at the end of the previous quarter and net debt to Ebitda stood at 1.28x as against 1.46x at the end of Q1FY27. Net debt as of September 30 stood at Rs 44,482 crore, lower by Rs 1,675 crore compared to June 30.

Consolidated capex for Q1 was Rs 6,266 crore, its highest ever on a quarterly basis. Capex for H1 stood at Rs 11,136 with a full fiscal outlook for FY27 of Rs 22,000 crore to Rs 24,000 crore. India operations Revenue from operations for the Indian came in at Rs 50,188 crore; up 30% annually. Adjusted Ebitda was Rs 9,636 crore in Q2, up 40% y-o-y and margin was 21.2%. Adjusted Ebitda per tonne for the quarter was Rs 13,248 up 22% on-year.

Reported Ebitda came in at Rs 9,812 crore. Crude steel production for the India operations in Q2 was 7.07 million tonne, up 5% annually and steel sales were 7.27 million tonne, a rise of 14%. The capacity utilisation for the combined Indian operations for the quarter stood at approximately 88%. The BF-3 at Vijayanagar ramped up well during the quarter, reaching 90% utilisation and contributing incremental volumes in Q2 FY27, the company said.

“The company is building an ecosystem for sustainable steel recycling with mechanised scrap processing centres planned to be set up across various locations. The first 0.5 MTPA recycling facility is being set up at Khopoli. The baler at the facility was commissioned during the Quarter, and the shredder is expected to be commissioned in Q3 FY27. The recycling facility will support resource circularity, decarbonisation and reduction in import dependency,” JSW Steel added.

The firm’s share price was down 2.62% on the Bombay Stock Exchange at Rs 1,187 per share on Friday. The results were announced towards the end of trading hours. JSW Steel’s board has approved a 5 MTPA expansion at JSW Utkal in Odisha, involving Rs 16,150 crore and targeted for commissioning by Q1 FY31. It also approved an 8 MTPA pellet plant at Vijayanagar and additional facilities at Dolvi. At Vasind, the company will invest in a 1.8 MTPA cold rolling mill complex and a 1.2 MTPA metal coating facility, including Zero Sprangle and Zinc-Aluminium-Magnesium facilities. The project is targeted for commissioning by Q2 FY30.