JSW Steel Q2 FY27 Results Analysis: Record Volumes Lift Revenue 31%, Margins Compress 150 bps (JSWSTEEL)
JSW Steel Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 54,486.00 Cr (+20.67% YoY) and PAT growth of +225.58% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 23, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 54,486.00 Cr (+20.67% YoY) |
| PAT (Q2) | Rs. 5,359.00 Cr (+225.58% YoY) |
| EBITDA margin | 18.57% (+281 bps YoY) |
| EPS (Q2) | Rs. 21.63 (+224.80% YoY) |
| Market cap | Rs. 289,908.57 Cr |
| CMP | Rs. 1,185.50 |
Quarter Snapshot
JSW Steel delivered record volumes (7.27 mt production, 7.46 mt sales) driving revenue up 15% QoQ and 31% YoY PF, with PAT up 14.1% QoQ to Rs.5,359 cr. The balance sheet transformed: net debt/EBITDA at 1.28x, US$500 mn notes redeemed early, and five rating upgrades including Moody's Baa3. The key watch item is coking-coal-driven margin compression (−150 bps QoQ) and a stretch H2 production requirement of ~7.95 mt/qtr to meet the FY27 target of 29.75 mt.
Key Investment Insights
Key Positives
- Record consolidated crude production of 7.27 mn t (+10% QoQ, +5% YoY PF) and record sales of 7.46 mn t (+19% QoQ, +13% YoY PF)
- Revenue grew 15.04% QoQ and 20.67% YoY (31% YoY PF ex-BPSL) to Rs.54,486 cr
- Consolidated PAT grew 14.12% QoQ to Rs.5,359 cr; EPS Rs.21.63 vs Rs.6.66 YoY
- Adjusted EBITDA margin up ~110 bps YoY PF (18.3% vs 17.2%) despite coking coal inflation
- Net debt fell Rs.1,675 cr QoQ to Rs.44,482 cr; net debt/EBITDA 1.28x LTM vs 1.46x; debt/equity 0.58x vs 1.15x YoY
- US$500 mn 3.95% notes redeemed ~6 months early on 7 October 2026; five rating upgrades including Moody's Baa3
- H1 operating cash flow Rs.17,672 cr (1.76x PAT); free cash flow Rs.7,068 cr funded record quarterly capex of Rs.6,266 cr
- US subsidiaries improved QoQ (Ohio EBITDA +22%, Plate & Pipe +18%); Italy EBITDA €6.98 mn vs €5.3 mn in Q3FY26
Risk Factors
- Adjusted EBITDA margin compressed 150 bps QoQ (19.8% to 18.3%) and adjusted EBITDA per tonne fell 11% QoQ (Rs.13,329 vs Rs.14,990) on higher coking coal prices
- FY27 production target of 29.75 mt requires H2 run-rate of ~7.95 mt/qtr, 9.3% above Q2's record 7.27 mt — flagged as a stretch
- Implied blended realisation declined QoQ (revenue +15.0% vs sales volume +19% QoQ) on lower realisations
- US Ohio utilisation at only 62% with scheduled shutdowns despite EBITDA improvement
- India remains a net importer of finished steel; exports at 0.98 mn t = 13% of India sales
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.