Jindal Steel Q2 FY27 Results (NSE: JINDALSTEL)
Signal: Steady quarter
The read
The trajectory remains volume-supported at the revenue line but earnings quality weakened: standalone revenue grew 26.1% YoY to ₹15,270.45 crore while PAT fell 6.5% to ₹860.65 crore, following the prior series' Q1FY27-to-Q2FY27 margin reversal; the key watchpoint is whether material and operating-cost intensity normalises after total expenses grew 29.8% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹15,270.45 Cr | +26.1% | -0.0% |
| Net profit | ₹860.65 Cr | -6.5% | |
| EPS | ₹8.46 | -6.6% |
P&L walk
Standalone revenue rose 26.1% YoY to ₹15,270.45 crore, but total expenses grew 29.8% and PAT fell 6.5% to ₹860.65 crore; higher material and operating costs outweighed the revenue increase.
Key positives
- Standalone revenue increased 26.1% YoY to ₹15,270.45 crore and was essentially flat QoQ, indicating a substantially higher sales base despite sequential volume pressure.
- H1 operating cash flow was ₹3,390.87 crore, up 0.7% YoY, broadly tracking H1 profit before tax of ₹2,643.94 crore.
- CWIP increased to ₹4,179.67 crore from ₹3,418.95 crore at March 31, 2026, indicating ongoing capacity or project deployment.
Key concerns
- PAT declined 6.5% YoY to ₹860.65 crore despite 26.1% revenue growth because total expenses rose 29.8% to ₹14,118.87 crore.
- Cost of materials consumed rose 27.7% YoY to ₹7,624.46 crore, leaving cost growth ahead of the revenue trajectory.
- Depreciation increased 6.9% YoY to ₹633.90 crore, adding pressure as the company continues to carry a large capital base.
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