JSW Steel Q1 FY27 profit jumps 38% to ₹4,696 crore as record sales, stronger realisations boost margins

JSW Steel kicked off FY27 on a strong note, reporting a 38% year-on-year (YoY) jump in consolidated net profit to ₹4,696 crore for the June quarter, aided by record first-quarter sales, improved steel realisations and healthy operating margins despite elevated raw material costs. Revenue from operations rose 19% YoY to ₹47,364 crore, while reported EBITDA increased 38% to ₹9,383 crore during the quarter.

The Sajjan Jindal-led steelmaker produced 6.59 million tonnes of crude steel during the quarter, up 3% from a year earlier, while saleable steel volumes touched a record 6.25 million tonnes for any first quarter, registering a 4% YoY increase.

The company also strengthened its balance sheet, with net debt falling by ₹7,713 crore sequentially to ₹46,157 crore, improving its net debt-to-equity ratio to 0.42x from 0.51x at the end of March.

Commenting on the operating environment, the company said, "India continues to stand out as the world's fastest-growing major economy, with the RBI's FY27 growth forecast of 6.6% underscoring the country's resilience amid a challenging global environment." 

It added that strong public capital expenditure and sustained demand from sectors such as automotive, commercial real estate, energy, data centres, defence and maritime are expected to support domestic steel consumption, although geopolitical developments and monsoon trends remain key risks.

Margins strengthen as realisations improve

Adjusted EBITDA stood at ₹9,373 crore, translating into an EBITDA margin of 19.8% compared with 17.8% in the year-ago period. EBITDA per tonne improved 27% YoY to ₹14,990, reflecting stronger product mix and better steel prices, although gains were partly offset by higher coking coal and other input costs.

Domestic sales reached 5.34 million tonnes, while exports surged 46% YoY to 0.68 million tonnes, accounting for 11% of sales from Indian operations. Institutional sales rose 5% to 3.72 million tonnes, while deliveries to the automotive, renewable energy and appliances segments touched their highest-ever levels for a first quarter.

Expansion pipeline remains on track

JSW Steel said its expansion projects continue to progress as planned. The upgraded Blast Furnace-3 at Vijayanagar has already ramped up to over 80% utilisation and is expected to contribute incremental volumes from the second quarter. Meanwhile, the 15 MTPA expansion at Dolvi remains on track for completion by September 2027, while the Utkal project in Odisha and downstream capacity additions are progressing as scheduled. The company incurred consolidated capital expenditure of ₹4,869 crore during the quarter and reiterated its FY27 capex guidance of ₹22,000-24,000 crore.

The company also said the proposed amalgamation of BMM Ispat Ltd is moving through the regulatory approval process and is expected to be completed in the fourth quarter of FY27, subject to statutory and judicial clearances.