JSW Steel profit more than triples on strong demand, beats Street estimates
JSW Steel, India’s largest steelmaker by capacity, more than tripled its September-quarter profit and beat analyst expectations on better volumes, higher steel prices and strong domestic demand that helped boost earnings.
The Sajjan Jindal-led company reported a consolidated net profit of ₹5,279 crore for the second quarter of fiscal year 2027 (FY27), up from ₹1,623 crore a year earlier, according to an exchange filing on Friday. The profit exceeded the ₹4,349-crore average estimate of 19 analysts polled by Bloomberg.
“Industrial activity, exports and automotive demand have been strong despite global headwinds indicating strong economic activity. Strong public and private investments across sectors continue to support the CapEx cycle," Jayant Acharya, chief executive officer (CEO) and joint managing director of JSW Steel told analysts in a post-earnings interaction on Friday evening.
Acharya, however, flagged elevated energy prices and inflationary pressures arising from an uneven monsoon as key risks to monitor just as the RBI has adopted a more hawkish stance and hike policy rates recently,
The Mumbai-based steelmaker reported a 21% year-on-year rise in consolidated revenue to ₹53,697 crore in the July-September period, beating the ₹52768-crore consensus estimate of 24 analysts polled by Bloomberg.
The company expects steel prices to increase sufficiently to absorb the additional expenses and improve margins incrementally from the September quarter. Price increases announced in October should be reflected in the December-quarter realisations, said Acharya. “We continue to remain very confident about the outlook for growth in India. The demand continues to be very strong. The second half (H2) looks very strong,” he said.
Analyst commentary echoed management's optimistic outlook. Sumangal Nevatia, director at Kotak Institutional Equities, said, “Profitability jumped primarily because of strong volume growth, supported by a recovery in steel prices from mid-August onwards. Production outages in the previous quarter also meant that volumes rebounded strongly in Q2, driving operating leverage.”
Market watchers expect the company to capitalise on buoyant steel realisations. Ritesh Shah, joint head of research and materials analyst at Investec India, highlighted that “We expect a sharp bump in profitability in H2, despite coking coal cost increase, on the back of strength in both flat and long pricing.”
Kotak's Nevatia reiterated a positive trajectory for the upcoming quarter. “Steel prices have increased significantly ahead of raw material costs, while domestic demand growth remains strong and the company has maintained its volume guidance. We expect further margin expansion in the next quarter,” he said.
While geopolitical friction in West Asia has spurred some input cost inflation, domestic price gains have comfortably absorbed those pressures, Nevatia added, observing that JSW Steel and broader industry peers remain well-positioned to benefit from these tailwinds.
The board approved Phase II of the 5 MTPA expansion at its JSW Utkal Steel facility in Odisha, involving a capital outlay of ₹16,150 crore. Overall, the steelmaker plans to invest up to ₹24,000 crore in capex during the current financial year.
In addition, the board cleared an 8 MTPA pellet plant at JVML-Vijayanagar to reduce reliance on iron ore lumps. It also approved expanding the MdR coking coal mine in Mozambique to achieve a 9 MTPA capacity for prime hard coking coal, with production slated to begin in phases starting CY28.
JSW Steel’s capacity expansion and raw material security push come alongside New Delhi’s draft National Steel Policy: Vision 2047, which projects that domestic steel demand will touch 505 million tonnes against a planned capacity of 604 million tonnes.
The company posted consolidated steel production of 7.27 million tonnes for the quarter, up 5% year-on-year and 10% sequentially. The output gain was driven by a smooth ramp-up at its Vijayanagar blast furnace, which reached a 90% utilization rate following its re-lighting in late June.
Meanwhile, Jindal Steel Ltd also posted strong quarterly results. The Delhi-based steelmaker’s consolidated revenue from operations jumped 43% year-on-year to ₹16,679 crore in Q2FY27, compared to ₹11,686 crore a year earlier. Net profit attributable to equity owners rose 21% to ₹774 crore from ₹638 crore in the corresponding period last fiscal.
On Friday, JSW Steel shares closed 2.62% lower, underperforming the benchmark Sensex, which ended down 0.17%.
Dipali Banka is a Mumbai-based journalist who treats corporate reporting less like a beat and more like a puzzle to be solved. This invariably means she has to read through annual reports and speak with leaders and analysts. She tracks policies, deals, and the pulse of industries spanning metals, mining, paints, and cement, alongside aviation. She started out as an intern at The Statesman and then completed her postgraduate diploma in journalism from Asian College of Journalism, Chennai, in 2025. Relentlessly curious at heart, Dipali is driven by the simple urge to understand how things work and who they impact. Armed with an enduring fascination for steel and aeroplanes, she moves through the churn of daily news with focus, turning complexity into clarity without losing the story. She is particularly committed to shaping numbers into objective narratives, having little appetite for vagueness that gets in her way.<br><br>Outside the newsroom, Dipali is an unapologetically loud presence who values long conversations and longer walks to unwind. She devours books of all kinds and can often be found indulging in the lyrical sway of contemporary ghazals. She ardently believes that her relationship with her bylines is more sacred than it would ever be with anyone across the human race.
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