JSW Steel (JSTL IN) – Q2FY27 Result Update – On a strong growth trajectory, poised for the next leap – Upgrade to ‘BUY’
Published on 24 Oct 2026
JSW Steel delivered a strong operating performance in Q2FY27, driven by robust volumes following the ramp-up of BF#3 post debottlenecking and higher flat steel prices. Consolidated volumes (ex-BPSL) grew 15% YoY to 7.46mt, supported by a 35% YoY surge in exports to 0.98mt and healthy demand from domestic automotive (+36% YoY), renewable energy (+14%) and appliances (+28%) segments. Average consolidated NSR declined 3.6% QoQ to INR73,038/t, it, impacted by sharp fall in long product prices during the quarter. On the cost front, higher coking coal costs (+US$10/t QoQ), marginally higher iron ore costs and elevated fuel costs kept consolidated EBITDA/t at INR13,566 (PLe: INR13,247). Looking ahead, management expects coking coal costs to rise by a further US$25/t, partly offset by stronger volumes and cost savings from the recently commissioned slurry pipeline. The JSTL board has approved an additional 5mtpa of crude steel capacity under Utkal Phase II, entailing incremental capex of INR162bn, along with INR70bn of efficiency projects under JVML Phase II. This takes planned capex over the next six years to INR1.48tn, supporting an additional 25mtpa of capacity by FY31E, including the 5mtpa expansion at the BPSL unit under the JFE JV. Management maintained its FY27 consolidated sales guidance of 28.6mt and reiterated its domestic steel demand growth estimate of 7-9%.
