JSW Steel Q2 FY27 Results (NSE: JSWSTEEL)

23 Oct 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The trajectory remains a margin-recovery story: gross margin expanded 232bps YoY and EBITDA margin expanded 240bps to 17.52%, with EBITDA growth of approximately 47.5% outpacing revenue growth of 27.3% as employee cost, depreciation and finance cost grew slower than revenue. However, the sequential inflection is weaker: PAT fell 40.9% from ₹5,750 crore to ₹3,396 crore as other income dropped from ₹3,358 crore to ₹413 crore, while EBITDA margin contracted 107bps from 18.59%.

P&L walk

Standalone revenue increased to ₹42,008 crore, while gross margin expanded to 47.15% and EBITDA margin to 17.52%; PAT rose to ₹3,396 crore, although sequential profit fell from ₹5,750 crore as other income declined sharply.

Key positives

• Revenue from operations rose to ₹42,008 crore, +27.3% YoY and +18.2% QoQ, although the filing does not split volume and realisation.
• Gross margin expanded 232bps YoY to 47.15% as material cost declined to 52.85% of revenue from 55.16%.
• Operating EBITDA margin rose 240bps YoY to 17.52%; EBITDA grew approximately +47.5% versus revenue +27.3%, with employee cost up 14.2%, depreciation down 2.8% and finance cost down 6.6%.
• H1 operating cash flow improved to ₹12,821 crore from ₹9,532 crore, while debt-to-equity declined to 0.57x from 0.77x.

Key concerns

• PAT declined 40.9% QoQ to ₹3,396 crore as other income fell to ₹413 crore from ₹3,358 crore, making the sequential earnings profile materially weaker despite higher revenue.
• EBITDA margin contracted 107bps QoQ to 17.52% from 18.59%, interrupting the recent margin expansion sequence on a sequential basis.
• The filing does not disclose steel volumes, realisations or product mix, limiting attribution of the 27.3% revenue growth to volume versus price and mix.

View original filing

Research and educational content only. Not investment advice.