Integrated steel producer JSW Steel is expected to report robust financial performance for the July-September quarter (Q2) of FY27, with analysts projecting significant growth in profitability. According to reports from Business Standard, Elara Capital expects the adjusted net profit to grow 60-110% year-on-year, while Kotak Institutional Equities (KIE) forecasts an 110.7% YoY increase to ₹4,965.5 crore. The strong profit growth is attributed to firmer steel prices and limited seasonal pressure on profitability during the quarter.
The steel market showed mixed price movements during Q2FY27, with domestic hot-rolled coil (HRC) and cold-rolled coil (CRC) prices remaining firm, up ~21-22% YoY and ~3-4% QoQ respectively. However, primary rebar and semis prices declined ~3% QoQ and ~1% QoQ respectively, as reported by Business Standard. This price dynamics contributed to the overall positive outlook for the quarter's performance.
According to Elara Capital analysis reported by Business Standard, steel demand remained resilient supported by several key factors. The demand was driven by channel restocking ahead of expected price hikes, healthy demand from the pipe sector, improving construction activity following a patchy monsoon, and strong auto demand, particularly for galvanized products. These market conditions provided a favorable backdrop for JSW Steel's operational performance during the quarter.
Kotak Institutional Equities expects net sales to rise 23.2% YoY and 17.6% QoQ to ₹54,888.4 crore, while Motilal Oswal Financial Services (MOFSL) projects adjusted PAT to rise 60% YoY to ₹3,300 crore on the back of 7% sales growth. As reported by Business Standard, KIE estimates JSW Steel's India operations (ex-BPSL) to report volumes of ~7 million tons (+13.2% YoY and +17% QoQ), with JVML volumes at ~1.1 million tons. The brokerage expects seasonal price weakness with standalone steel realizations to decrease by 1.1% QoQ and estimates India operations' EBITDA/ton to decrease to ₹13,744/ton (+26% YoY and -10.1% QoQ) led by QoQ lower realizations and higher coking coal costs.
According to MOFSL analysts reported by Business Standard, guidance on capex status and demand/pricing outlook along with commentary on cost inflation will be key areas to monitor during the results announcement. The brokerage noted that a flat-to-marginal rise in NSR will support earnings, while sales volume is expected to remain healthy over capacity ramp-up. These factors will provide insights into the company's operational efficiency and future growth trajectory.
