JSW Steel delivered exceptional Q1FY27 results with consolidated net profit more than doubling to ₹4,651 crore compared to ₹2,184 crore in the year-ago period, comfortably beating Bloomberg estimates of ₹3,199 crore. Revenue from operations rose 9.8% year-on-year to ₹47,364 crore from ₹43,147 crore in Q1FY26, with year-on-year revenue growth standing at 19% on a proforma basis after adjusting for the de-consolidation of Bhushan Power. EBITDA increased 23% to ₹9,383 crore, compared with the poll estimate of ₹8,398 crore, while EBITDA margin expanded to 19.81% from 17.56% year-on-year, beating the Street expectation of 17.94%. Profit before tax stood at ₹6,160 crore, up 100.5% from ₹3,072 crore in Q1FY26. Other income nearly doubled to ₹724 crore from ₹350 crore in the corresponding quarter last year. Total income increased 10.6% to ₹48,088 crore, demonstrating strong operational performance across the quarter. The company's basic earnings per share increased significantly to ₹19.05 from ₹8.95, while diluted earnings per share rose to ₹19.02 from ₹8.93 in the previous year.
Steel sales reached a record 6.25 million tonnes for any first quarter, rising 4% year-on-year, driven by continued strength in value-added and special products (VASP) and flat steel. Domestic sales stood at 6.02 million tonnes, with institutional sales increasing 5% from a year earlier. Excluding the temporary shutdown of Blast Furnace-3 for an upgrade in the year-ago period, production growth stood at 15%. Exports increased 46% year-on-year to 0.68 million tonnes and accounted for 11% of sales from Indian operations. Crude steel production increased 3% to 6.59 million tonnes in Q1FY27 from 6.38 million tonnes in the corresponding quarter of the previous year, with consolidated production for the quarter higher by 3% YoY and 2% QoQ. Capacity utilisation, excluding BF-3, stood at 94% during the quarter. JSW Steel shares are currently trading at ₹1,258.70, gaining 1.70% following the earnings announcement, as investors continue to cheer the earnings beat and continued improvement in the company's operating performance. Revenue growth for the steelmaker was boosted by a combination of higher steel prices and a 4% growth in consolidated sales volumes, demonstrating the company's ability to capitalize on favorable market conditions.
JSW Steel expects higher production and sales volumes to support earnings in the July-September quarter of 2026 (Q2FY27) despite seasonal weakness in steel demand and rising coking coal costs, according to Jayant Acharya, Joint Managing Director & CEO. The ramp-up of the blast furnace at Vijayanagar and improved operations in the US are expected to lift overall volumes, while softer iron ore prices could provide some relief on costs later in the quarter. However, prices for long products had already fallen during the last quarter, and in a seasonally weaker monsoon quarter, demand for long products is affected because construction activity slows. Flat steel prices are also likely to moderate, although not to the same extent as long products. Coking coal costs will continue to impact margins, with Acharya estimating another increase of around $12-15 per tonne in Q2, though coking coal prices have started easing over the last week or two.
Total expenses rose less than 4% year-on-year to ₹41,830 crore from ₹40,325 crore, with cost of materials consumed increasing 18.4% to ₹24,586 crore and purchases of stock-in-trade rising to ₹1,814 crore from ₹554 crore. However, finance costs fell 22.8% to ₹1,712 crore and depreciation and amortisation expenses declined 15.8% to ₹2,137 crore. The EBITDA made on each tonne of steel rose 23% on year to ₹14,990 during the quarter, demonstrating improved operational efficiency. JSW Steel's consolidated net debt is down to ₹46,157 crore at the end of June from ₹53,870 crores a quarter ago, with net debt to equity ratio at 0.42 times, down from 0.51 times at the end of the March quarter. The net debt to EBITDA ratio stood at 1.46 times, down from 1.81 times, indicating stronger financial health. The company retained its guidance of spending ₹22,000 – 24,000 on capital expenditure this year, having spent ₹4,869 crores during the quarter. JSW Steel has also been onshoring a substantial portion of its overseas debt to reduce the impact of currency movements, with Acharya noting that "We have actually been able to build a model by which we are more or less neutralising the P&L impact going forward, so there will be very little impact on the P&L."
Multiple brokerages raised their earnings estimates and maintained positive ratings following JSW Steel's Q1FY27 results. Kotak Institutional Equities upgraded JSW Steel to 'Buy' from its earlier rating and raised its price target to ₹1,450, citing stronger steel realisations and better-than-expected operating performance. JPMorgan maintained its 'Overweight' rating and increased its target price to ₹1,500, highlighting broad-based operational strength across India and overseas businesses along with continued deleveraging. Morgan Stanley reiterated its 'Overweight' rating with a target price of ₹1,470, expecting the September quarter to remain seasonally weak but believing investors should focus on the company's longer-term earnings trajectory. Goldman Sachs retained its 'Buy' rating and raised its target price to ₹1,525, expecting higher production volumes as the recently commissioned BF-3 blast furnace ramps up. Jefferies reiterated JSW Steel as its top pick in the Indian metals space and raised its price target to ₹1,650, expecting earnings to strengthen meaningfully over the next few years. Prabhudas Lilladher has now recommended an 'Accumulate' rating with a revised target price of ₹1,351, maintaining its positive outlook on the company's operational performance and growth prospects. Capital 360 One maintained its 'Buy' rating with a target price of ₹1,437, noting that "JSW Steel's revenue was broadly in line with market expectations, while its profitability was better than expected."
Separately, the board approved JSW Steel's participation in the proposed initial public offering (IPO) of JSW One Platforms Ltd. As part of the offering, JSW Steel plans to sell shares worth up to ₹811 crore through an offer for sale (OFS), subject to regulatory approvals, market conditions, and other necessary clearances. The proposed transaction is aimed at partially monetising its investment in the digital B2B commerce platform while continuing to remain a shareholder. JSW Steel will offer for sale such number of equity shares of face value ₹10 each held by the company in JOPL, aggregating up to ₹811 crore, with the price and other details to be determined at a later stage by the competent authority in accordance with applicable laws. JSW One contributed about 0.35% of the company's consolidated profit after tax. JSW Steel shares climbed 1.70% to ₹1,258.70 following the earnings announcement, with intraday gains reaching 2.3% to touch ₹1,266.60 per share, reflecting strong investor confidence in the company's strategic positioning and operational performance. JSW Steel shares are currently trading at ₹1,258.70 following the earnings announcement, as investors continue to cheer the earnings beat and continued improvement in the company's operating performance.
JSW Steel expects reconstruction across West Asia after the ongoing war to create fresh steel demand, even as it warned that surplus exports from China, Japan and Russia could increasingly be diverted to India, posing a threat to domestic producers. "Geopolitically, since there are challenges in the Middle East, China, Japan and Russia all have a footing there. The diversion of Middle East cargoes to Indian shores is an area of threat we need to watch," said Jayant Acharya, joint managing director and CEO of JSW Steel. "Some cargoes have come in, and we are also seeing that China, Japan and Russia—imports from all three countries have gone up substantially. We need to watch this space, and our idea is to see that unfair trade does not happen and the surge is contained." The Directorate General of Trade Remedies has initiated an anti-dumping investigation into steel imports from the three countries, which Acharya called "a welcome step to prevent surplus global steel from undermining domestic producers." "It's important for us to make sure that structurally we remain self-reliant and do not allow surplus global flows to hit us here," he added. JSW Steel has already supplied API-grade steel for pipes used in Saudi Arabia's NEOM project, with Acharya noting that "Our capability of supplying oil and gas requirements to the pipe and tube industry in India is very much there. We are able to supply X70, X80, whatever is required by the oil and gas industry."
