JSW Steel Reports Triple-Digit Profit Growth in Q2
JSW Steel, India's largest steelmaker by capacity, announced a significant financial performance for the second quarter of the fiscal year, reporting a consolidated net profit that more than tripled year-on-year. The company's profit after tax (PAT) soared by 225.3% to ₹5,279 crore for the July-September quarter (Q2 FY27), a substantial increase from ₹1,623 crore in the same period last year.
This robust growth was underpinned by record steel sales volumes and favorable flat steel prices. Total revenue from operations also saw a healthy rise of 10.7% year-on-year, reaching ₹54,486 crore, up from ₹49,152 crore in Q2 FY26. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbed 42.2% to ₹10,120 crore, compared to ₹7,115 crore in the prior year's second quarter.
Brokerages Maintain Bullish Outlook on JSW Steel
Following the impressive Q2 results, leading brokerages have largely maintained a positive and bullish stance on JSW Steel's stock. Jefferies, a global investment bank, reiterated its "Buy" rating with a base case price target of ₹1,650, suggesting a potential upside of 39%. The firm highlighted JSW Steel as its top pick in Indian metals, projecting that earnings per share (EPS) could treble between FY26 and FY29.
Jefferies noted that JSW Steel's September quarter EBITDA aligned with their estimates, and they anticipate margin expansion as a 15% rise in India steel prices since August 2026 is expected to more than offset increased coking coal costs. Additionally, the announced 10 million tonne capacity expansions further solidify the company's goal to double capacity by FY32.
MOSL and Systematix Echo Positive Sentiment
Motilal Oswal Financial Services (MOSL) also retained its "Buy" rating, citing strong volumes and a robust outlook for the steelmaker. MOSL largely maintained its FY28 earnings estimates, setting a target price of ₹1,460.
Brokerage firm Systematix praised JSW Steel's strong Q2 FY27 performance, attributing it to record production volumes, higher capacity utilization, and improved overseas operations. Systematix forecasts strengthening operational momentum in the second half of FY27, with higher steel realizations and a beneficial product mix expected to mitigate a projected $25 per tonne increase in coking coal costs in the December quarter.
Systematix has increased its FY27 estimated EBITDA by 14% and maintained a "Buy" rating, revising its target price to ₹1,515 per share, indicating an upside potential of 28%. Key risks identified by brokerages include weaker steel prices, higher input costs, and potential delays in project execution.