JSW Steel Revenue Rises 20.7% to 544.86 Billion Rupees in Second Quarter
Key Facts
JSW Steel’s revenue from operations rose 20.7% year on year to 544.86 billion rupees in the quarter ended September 2026, beating the average analyst estimate of 504.94 billion rupees, Reuters reported, citing data compiled by LSEG. Steel sales volume was 7.46 million metric tons, up 13% from the same period a year earlier. Reuters said stronger shipments from flat steel operations supported sales growth. Live Mint also reported that the company’s net profit exceeded the average estimate of 4,349 crore rupees from 19 analysts polled by Bloomberg. The results reflected growth in revenue and volumes, while markets await the impact of higher raw material costs in the next quarter.
Operating EBITDA margin was 18.57% in the second quarter, compared with 15.76% a year earlier, Reuters reported. In the same period, raw material costs rose 12.5%, and total expenses climbed 12% to 481.68 billion rupees. The figures show that the margin improvement came alongside mounting cost pressures. Coking coal prices rose $10 per ton during the September quarter, below the company’s expected range of $12 to $15 per ton. That puts coal costs among the factors that will shape the company’s performance in the next quarter.
The company expects coking coal prices to rise $25 per ton from October to December, Reuters reported, while Chief Executive Jayant Acharya said iron ore prices were likely to see a marginal increase. Acharya said the company was focused on using more domestic coking coal, adding that it “can give us a cost advantage.” His remarks point to a shift toward greater reliance on a domestic source as the company expects coal costs to rise, without indicating that cost savings have already been achieved. Upcoming raw material prices will coincide with changes to selling prices announced by the company in October. Acharya said those increases should be reflected in realized prices during the December quarter, and that the second half looked strong.
Acharya attributed resilient demand to strong industrial activity and exports, as well as demand from the automotive sector, despite global challenges, Live Mint reported. He added that public and private investment continued to support the capital expenditure cycle. The company expects domestic steel demand to grow between 7% and 8% in fiscal 2027, supported by construction and infrastructure activity, Reuters reported. Those sectors provide a backdrop to the demand outlook cited by the chief executive, while coal and iron ore costs remain variables the company is monitoring in the coming period. The effects of the steel price increases announced in October are due to appear in realized selling prices during the December quarter, Acharya said.
JSW Steel kept its fiscal 2027 guidance at consolidated production of 29.75 million tons and sales of 28.6 million tons, excluding JSW-JFE Steel Ltd. from both guidance figures, Moneycontrol reported. In trading, the stock closed at 1,187 rupees on the BSE on October 23, down 2.62% from the previous close, the same report said. It then rose 6% to 1,260 rupees on October 26 after quarterly results beat analyst estimates, Moneycontrol reported. In its report that day, the outlet cited price targets from brokerages: 1,500 rupees from CLSA, 1,650 rupees from Jefferies and 1,470 rupees from JM Financial. The report listed Outperform ratings from CLSA and Buy ratings from Jefferies and JM Financial.