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JSW Steel Q2 results preview: Integrated steel producer JSW Steel could report strong growth in net profit for the July-September quarter (Q2) of the financial year 2026-27 (FY27), helped by firmer prices, limiting the usual seasonal pressure on profitability.
Domestic hot-rolled coil (HRC) and cold-rolled coil (CRC) prices remained firm in Q2FY27, up ~21-22 per cent YoY and ~3–4 per cent QoQ, respectively. The primary rebar and semis prices declined in the second quarter, falling ~3 per cent QoQ and ~1 per cent QoQ, respectively.
Elara Capital said that steel demand remained resilient, supported by channel restocking ahead of expected price hikes, healthy demand from the pipe sector, improving construction activity following a patchy monsoon, and strong auto demand, particularly for galvanized products.
Against this backdrop, JSW Steel is expected to post a 60-110 per cent year-on-year (YoY) rise in the adjusted net profit for the quarter under review, while its net sales could grow in double digits.
JSW Steel Q2 preview
Here's what brokerages expect:
Kotak Institutional Equities (KIE)
According to KIE, the net sales could rise 23.2 per cent year-on-year (YoY) and 17.6 per cent quarter-on-quarter (QoQ) to ₹54,888.4 crore while the adjusted profit could see a 110.7 per cent YoY and 7 per cent QoQ rise to ₹4,965.5 crore.
The brokerage said it expects JSW Steel's India operations (ex-BPSL) to report volumes of ~7 million tons (+13.2 per cent YoY and +17 per cent QoQ), with JVML volumes at ~1.1 million tons. "We build in seasonal price weakness with standalone steel realizations to decrease by 1.1 per cent QoQ (+27 per cent YoY)," it said.
Further, it estimates India operations' EBITDA/ton to decrease to ₹13,744/ton (+26 per cent YoY and -10.1 per cent QoQ) led by QoQ lower realizations/higher coking coal costs during the quarter.
Motilal Oswal Financial Services (MOFSL)
According to MOFSL, the adjusted PAT could rise 60 per cent YoY to ₹3300 crore on the back of a 7 per cent growth in sales in Q2 FY27.
The brokerage said that a flat-to-marginal rise in NSR will support earnings. Meanwhile, sales volume is expected to remain healthy over capacity ramp-up.
Guidance on capex status and demand/pricing outlook along with commentary on cost inflation will be key monitorables, said MOFSL analysts.
Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.
