JSW Steel Q2 profit jumps 225% to ₹5,279 crore; board approves expansion

JSW Steel on Friday reported a 225.3 per cent year-on-year (Y-o-Y) jump in consolidated net profit (attributable to owners of the company) to ₹5,279 crore in the second quarter of 2026-27 (Q2FY27), led by higher sales volumes, price recovery and better cost management. In the year-ago period, the company’s net profit stood at ₹1,623 crore. 

The net profit topped Bloomberg’s estimate of ₹4,349.6 crore. 

The firm’s total revenue, on a consolidated basis, increased 20.7 per cent Y-o-Y to ₹54,486 crore from ₹45,152 crore last year. The revenue exceeded Bloomberg’s consensus estimate at ₹52,767.8 crore. 

Sequentially, revenue was up 15 per cent and net profit rose 13.5 per cent. 

Consolidated production for the quarter was the highest ever at 7.27 million tonnes (mt), up 5 per cent Y-o-Y and 10 per cent Q-o-Q, driven by the ramp-up of Vijayanagar blast furnace 3. 

Steel sales for the quarter were highest ever at 7.46 mt, up 13 per cent Y-o-Y and 19 per cent Q-o-Q, driven by flats and value-added steel products. 

Domestic sales stood at a record 6.29 mt, up 12 per cent Y-o-Y and 18 per cent Q-o-Q, the company said. Institutional sales volumes grew 15 per cent Y-o-Y to 4.15 mt, while sales to the auto sector were highest-ever, up 36 per cent Y-o-Y. 

Exports stood at 0.98 mt, contributing to 13 per cent of sales from India operations for Q2FY27. 

Adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) was at ₹9,941 crore, with an Ebitda margin of 18.3 per cent during the quarter, the company said. It rose 6 per cent Q-o-Q, driven by higher volumes, partly offset by higher coking coal prices and lower realisations. Reported Ebitda stood at ₹10,120 crore during the quarter. The company’s net debt as of September 30, 2026 stood at ₹44,482 crore, down ₹1,675 crore compared to June 30, 2026. 

JSW Steel reported its highest-ever quarterly consolidated capital expenditure (capex) of ₹6,266 crore in Q2FY27. Capex for the first half of FY27 stood at ₹11,136 crore. It expects capex for FY27 to be in the range of ₹22,000 crore-24,000 crore.  

The board on Friday approved additional investments across steelmaking, downstream, mining and joint venture operations. These included Phase-II of the JSW Utkal facility in Odisha, which will add 5 million tonnes per annum (mtpa) of capacity with a capital outlay of ₹16,150 crore. The project is targeted for commissioning by Q1FY31. The expansion will take the total steelmaking capacity under construction at the site to 10 mtpa. 

The board also approved a 5 mtpa expansion and upgradation of existing facilities at Sambalpur in Odisha by JSW JFE Steel Ltd (JJSL), a 50:50 joint venture between JSW Steel and Japan’s JFE Steel. 

The project’s equity requirement is estimated at ₹7,500 crore, to be contributed equally by JSW Steel and JFE Steel. JJSL currently operates a 4.5 mtpa integrated steel plant at Sambalpur and two downstream facilities in Chandigarh and Kolkata. 

The board also approved an 8 mtpa pellet plant at JVML-Vijayanagar to reduce dependence on iron ore lumps. To bolster raw material security, the board approved expanding the MdR coking coal mine in Mozambique to 9 mtpa, with phased production targeted to begin in calendar year 2028.

 It also cleared capex for developing captive iron ore and coking coal mines and washeries in India.