JSW Steel, India's largest private steel producer, reports Q2 FY27 results with the quarter's story shaped by a guided coking coal cost increase of USD 12-15/t against domestic HRC prices at a four-year high of ~Rs. 64,000/t. The print will speak to whether the 20% adjusted EBITDA margin of Q1 FY27 holds as costs move first, and whether the 29.75 mt FY27 production target stays on track with Vijayanagar BF-3 ramping.
| Results date | October 23, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 47,364 Cr |
| Previous quarter PAT | Rs. 4,696 Cr |
| Previous quarter EBITDA margin | 20% |
| Net debt (latest quarter) | Rs. 46,157 Cr |
| Market cap | Rs. 297,440.57 Cr |
| CMP | Rs. 1,216.3 |
A board meeting is scheduled on October 23, 2026 to consider the Q2 and H1 FY27 financial results, per the September 28, 2026 intimation. The trading window remained closed from October 1 to October 25, 2026.
The quarter's central test is the margin bridge: management guided Q2 FY27 coking coal cost up USD 12-15/t, and the India import assessment spiked to $283/t in September versus a $232/t August average, while Q1 FY27 adjusted EBITDA margin stood at 20%. On the volume side, Q2 production of 7.27 MnT (+5% YoY, +10% QoQ) took H1 FY27 output to 13.86 MnT, or 46.6% of the 29.75 mt full-year target, with Indian utilisation at 88% and about 90% in September as Vijayanagar BF-3 ramps. Realisations entered the quarter's exit with momentum, with domestic HRC at a four-year high of ~Rs. 64,000/t, up ~Rs. 4,000/t since August, though imports rose 22% QoQ in Q1 and India turned a net steel importer again with the safeguard benefit partially eroded. Iron ore behaved benignly, with NMDC fines at Rs. 4,500/t and seaborne ore at a one-year low on August 3, consistent with management's guidance that Q3 coking coal and iron ore costs trend down. The deleveraging narrative also faces its first post-quarter test, as the Rs. 46,157 Cr net debt at June 30, 2026 preceded the October 7 early redemption of US$500 million 3.95% notes, roughly six months ahead of the April 2027 maturity.
Performance vs Guidance Tracking: Key FY27 guidance items and where things stood entering the print:
BF-3 ramp and volume run-rate
Imports and trade policy
US Ohio recovery
Strategic execution updates
Management has said the capex program will not load the balance sheet, with BF-3, JVML and Dolvi Phase-3 cash flows funding internal accruals, and annual capex of Rs. 20,000-25,000 Cr seen as manageable at 2.91x leverage. Net debt fell to Rs. 46,157 Cr with Net Debt/EBITDA at 1.46x, and the US$500 million 3.95% notes due April 2027 were redeemed in full on October 7, 2026, about six months early.
On the Q1 FY27 call, management attributed the improvement to a higher special-grade share, lower JVML costs, and the 2% top-line incentive growing with volumes. Detailed colour was offered offline and flagged as a follow-up candidate.
Management said imports rose from Japan, Russia and China, and anti-dumping investigations have been initiated, though the outcome is uncertain as a legal process and anti-dumping can run parallel to safeguards. The DGTR recommended extending the safeguard for 3 years at reducing rates of 12%, 11.5% and 11%, while noting the 12% duty's benefit had partially eroded with circumvention risk via Japan and Korea.
H1 FY27 production of 13.86 MnT (+4% YoY) equals 46.6% of the 29.75 mt full-year target, with Q2 output of 7.27 MnT at 97.7% of the implied quarterly average. For reference, management achieved 99% of production guidance and 102% of sales guidance in FY26.
Revenue rose 19% YoY to Rs. 47,364 Cr in Q1 FY27, up 2% QoQ on higher realisations partly offset by lower volumes. Growth was supported by strong segment momentum, with hot-rolled sales +18% YoY, auto volumes +18% YoY and renewables +25% YoY in the quarter.