JSW Infrast Q2 FY27 Results (NSE: JSWINFRA)
Signal: Margin pressure
The read
The trajectory has shifted from topline expansion to earnings conversion: consolidated revenue rose 17.0% YoY to ₹1,480.92 crore, led by logistics, but EBITDA grew only 10.6% and margin fell 263bps to 45.5% as operating expenses rose 26.3%; PAT declined 11.0% because finance costs including exchange loss rose 145.2%, while QIP dilution pushed EPS down 22.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,480.92 Cr | +17.0% | +2.5% |
| Net profit | ₹328.23 Cr | -11.0% | |
| EPS | ₹1.35 | -22.4% | |
| EBIT margin | 45.5% |
P&L walk
Revenue grew 17.0% YoY to ₹1,480.92 crore, but EBITDA margin contracted to 45.5% from 48.2% as operating expenses grew 26.3% and finance costs including exchange loss rose 145.2%; PAT fell 11.0% to ₹328.23 crore and EPS fell 22.4% to ₹1.35.
Segments
Logistics is driving the incremental growth: revenue rose 71.7% YoY to ₹279.32 crore and segment result rose 460.4% to ₹58.24 crore, while the larger Port Operation segment grew revenue 8.9% and its result declined 1.7% to ₹484.71 crore.
Key positives
- Logistics is becoming a meaningful growth engine: revenue increased 71.7% YoY to ₹279.32 crore and segment result increased 460.4% YoY to ₹58.24 crore.
- Revenue from operations grew 17.0% YoY to ₹1,480.92 crore despite port-operation revenue growing only 8.9%, indicating faster expansion outside the core port segment.
- The asset base is expanding: PP&E plus CWIP rose to ₹11,587.49 crore from ₹10,001.69 crore at 31 March 2026, while depreciation rose 17.9% YoY to ₹175.08 crore.
Key concerns
- EBITDA margin contracted 263bps YoY to 45.5% as operating expenses increased 26.3% YoY, faster than revenue growth of 17.0%.
- Finance costs including exchange loss rose 145.2% YoY to ₹256.77 crore, reducing profit before tax to ₹431.13 crore despite ₹188.55 crore of other income.
- Port Operation segment result declined 1.7% YoY to ₹484.71 crore even as its revenue grew 8.9%, showing weaker earnings conversion in the core business.
- EPS declined 22.4% to ₹1.35, twice the rate of PAT decline, reflecting the enlarged share base after the QIP.
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