Mumbai, India – India's leading steel manufacturers, JSW Steel and Jindal Steel, have announced robust financial results for the second quarter of fiscal year 2027, showcasing significant year-on-year growth in both revenue and net profit. Despite the overall positive performance, a closer look at their operating margins reveals contrasting trajectories, highlighting differing operational efficiencies and market dynamics.
JSW Steel Exceeds Expectations with Margin Expansion
JSW Steel Ltd. reported a consolidated net profit of Rs 5,359 crore for Q2 FY27, a substantial increase from Rs 1,646 crore in the same quarter last year. The company's revenue also saw a healthy rise of 20.7 percent year-on-year, reaching Rs 54,486 crore, up from Rs 45,152 crore.
A key highlight for JSW Steel was the expansion of its EBITDA margin. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) surged by 42.2 percent to Rs 10,120 crore from Rs 7,115 crore. Consequently, the EBITDA margin expanded by 280 basis points, climbing to 18.6 percent from 15.8 percent a year earlier. These figures surpassed CNBC-TV18 poll estimates, which had projected lower revenue, net profit, EBITDA, and margin.
Jindal Steel's Profit Rises Despite Margin Contraction
In parallel, Jindal Steel Ltd. also posted impressive growth in its Q2 FY27 results, with net profit increasing by 21 percent year-on-year to Rs 774 crore, compared to Rs 638 crore in the corresponding period last year. The company's revenue recorded an even stronger surge of 43 percent, reaching Rs 16,679 crore from Rs 11,686 crore.
EBITDA for Jindal Steel grew by 24 percent to Rs 2,573 crore from Rs 2,081 crore. However, unlike its counterpart, Jindal Steel's EBITDA margin contracted by 240 basis points, falling to 15.4 percent from 17.8 percent in the previous year. The company attributed this contraction to various factors, noting that its average selling price improved sequentially, supported by a higher share of flat steel products in its sales mix and reduced sales of thermo-mechanically treated products within the long steel category. Domestic sales constituted 92 percent of Jindal Steel's total sales in Q2 FY27, a slight increase from 91 percent in the preceding June quarter.
Market Reaction
Following the announcements, shares of Jindal Steel experienced a decline of more than 1.7 percent, trading at Rs 1012. JSW Steel's shares also saw a dip, falling 2.6 percent to Rs 1187 during Friday's session, despite its stronger margin performance.