SAIL and JSW Cement Shares Fall Despite Quarterly Profit Growth in India
Key Facts
Net profit at Indian steelmaker SAIL jumped to 1,774 crore rupees in the second quarter of fiscal 2027, from 427 crore rupees in the same period a year earlier, while operating revenue rose to 31,998 crore rupees from 26,704 crore rupees. The company reported results for the period ended September 30, 2026, with earnings before interest, taxes, depreciation and amortisation rising to 4,561 crore rupees, compared with 2,829 crore rupees a year earlier. Standalone sales volume increased to 5.16 million tonnes from 4.91 million tonnes. The quarterly results show improved profitability and revenue alongside sales growth, but first-half data present a more mixed picture for cumulative volumes.
SAIL said production of finished saleable steel grew 8.2% quarter on quarter during the quarter, supported by higher sales volumes and strong production, alongside increased iron ore production and sales. This measure compares with the previous quarter, unlike the year-on-year comparison in the sales and financial results. In the first half of fiscal 2027, from April to September, operating revenue was 58,243 crore rupees, compared with 52,625 crore rupees in the corresponding period. First-half earnings before interest, taxes, depreciation and amortisation rose to 8,917 crore rupees from 5,754 crore rupees. But sales volume for the six months fell to 9.33 million tonnes from 9.46 million tonnes a year earlier, despite the improvement recorded in the second quarter.
The company said activity maintained its momentum in cement and slag across regions, with volumes accelerating in the north.
At the operational level, JSW Cement said its integrated Nagaur plant recorded average capacity utilisation of 75% in the second quarter and posted positive operating earnings before interest, taxes, depreciation and amortisation. This comes amid sales growth that the company said benefited from sustained momentum across regions and accelerating activity in the north. The company has started work to add grinding capacity of 2.5 million tonnes a year at Nagaur, taking the plant’s total capacity to 6.0 million tonnes a year once the project is complete. In its disclosure, it said the plant “recorded average capacity utilisation of 75% and delivered positive operating earnings.” The expansion puts Nagaur among the company’s plans to increase grinding capacity, alongside its current operations and quarterly performance.
JSW Cement is also working to merge Shiva Cement, and said completion of the merger is expected within 12 to 14 months, subject to timely receipt of the required regulatory approvals and the necessary approvals from shareholders, creditors and the National Company Law Tribunal. The timeline adds a corporate process to the company’s operational plans, while completion of the deal remains subject to approvals. In the sector backdrop, India’s core industries index grew 7.9% year on year in September 2026, compared with 5.9% in August, according to data from the Ministry of Commerce and Industry. Cement production rose 9.8% and steel production 4.9% in September. For April to September, the index recorded cumulative growth of 5.1%, compared with 2.5% in the same period a year earlier.
Data from the Ministry of Steel showed that India’s finished steel consumption rose 7.6% to 85.0 million tonnes in the first half of fiscal 2027, from 79.0 million tonnes in the corresponding period a year earlier. In trading on October 28, Moneycontrol reported that SAIL shares closed at 171.50 rupees, up 0.94% from the previous close. By contrast, Moneycontrol’s market page showed JSW Cement shares at 115.30 rupees, down 1.12% at 10:38 on the same day. Looking ahead to data releases, the Ministry of Commerce and Industry said the core industries index for October will be released on November 20, 2026. The Ministry of Steel was also scheduled to hold an open meeting on steel import issues on October 28.