JSW Steel (JSWSTEEL) Q2 26/27 earnings summary

Executive summary

• Record consolidated Q2 crude steel production of 7.27 Mt, up 5% YoY, and sales of 7.46 Mt, up 13% YoY.

• Revenue reached ₹54,486 crore, adjusted EBITDA ₹9,941 crore and net profit ₹5,359 crore.

• India operations recorded production of 7.07 Mt and sales of 7.27 Mt; domestic sales hit 6.29 Mt, up 12% YoY.

• Capacity plans include a 78 Mt India target by 2032 and a 62 Mtpa long-term target including JVs by FY32.

Financial highlights

• Revenue was ₹54,486 crore, up 31% YoY and 15% QoQ; reported EBITDA was ₹10,120 crore and adjusted EBITDA ₹9,941 crore.

• Adjusted EBITDA rose 39% YoY; adjusted margin was 18.3% versus 19.8% QoQ, and adjusted EBITDA per tonne was ₹13,329, down 11% QoQ.

• Net profit was ₹5,359 crore; diluted EPS was ₹21.59.

• Higher coking coal and other input costs and lower realizations weighed on Q2 profitability QoQ.

• Q2 capex was ₹6,266 crore and H1 capex ₹11,136 crore; quarterly cash generation reduced debt despite high investment.

Outlook and guidance

• FY27 consolidated production guidance is 29.75 Mt and sales guidance 28.6 Mt; India guidance includes BMM Ispat and excludes the JSW JFE JV.

• FY27 capex guidance remains ₹22,000–24,000 crore; the expanded ₹1.48 lakh crore capex program is planned over five to six years, largely funded by internal accruals.

• Q3 volumes are expected to rise with full production from Vijayanagar BF-3 and JVML; FY27 production and sales guidance remains on track.

• FY27 domestic steel demand is expected to grow 7%–8%; Q3 coking coal costs are forecast to rise ~$25/t, with iron ore costs marginally higher.

• October price increases and Q2 price recovery are expected to offset cost inflation and add incrementally to margins over Q2.