JSW Steel reported a 103% jump in net profit for the June quarter of FY27, reaching ₹4,696 crore as steel realizations and sales volumes improved. Revenue grew 10% to ₹47,364 crore, aided by strong domestic operations. The company also announced plans to raise ₹811 crore through an IPO for its subsidiary, JSW One Platforms.
JSW Steel delivered a strong performance for the June quarter of FY27, with net profit more than doubling to ₹4,696 crore compared to ₹2,209 crore in the same period last year. This sharp increase in profitability was driven by better steel prices and a reduction in finance costs, which helped the company improve its bottom line despite global volatility in the steel sector.
Revenue and Operational Gains
The company's revenue from operations rose by 10% to ₹47,364 crore, supported by a 4% increase in sales volume, which reached 6.25 million tonnes. A key factor behind the profit growth was the improvement in operating profitability, with EBITDA per tonne rising 27% to ₹14,990. Overall EBITDA for the quarter stood at ₹9,373 crore, reflecting a 32% increase year-on-year. The company's Indian operations remained the primary growth engine, contributing ₹42,894 crore to the total revenue.
Capacity Expansion and Capital Spending
To drive future growth, JSW Steel is focusing on expanding its production capabilities. In June, the company commissioned a blast furnace at its Vijayanagar facility, increasing its capacity from 3 MTPA to 4.5 MTPA. This project is expected to boost sales volumes starting in the September quarter. The company spent ₹4,869 crore on capital projects during the quarter, out of its total planned investment of ₹24,000 crore for the full fiscal year. Additionally, the company is enhancing its product range at units in Khopoli and Raigarh, specifically focusing on higher-strength, value-added steel products to improve margins.
Subsidiary Listing and Capital Allocation
JSW Steel plans to unlock value in its digital business, JSW One Platforms, by launching an IPO to raise ₹811 crore. This business-to-business platform, established in 2020, has already attracted institutional interest and achieved a $1 billion valuation during a fundraising round last year. Investors should note that while this divestment aims to support growth in the digital arm, the company’s overall capital spending remains high, which requires careful management of cash flow and debt levels.
Financial Context and Outlook
While the company has shown strong growth in margins and volumes, investors should continue to track factors like raw material price fluctuations and domestic demand patterns, which are critical for sustaining profit margins in the steel industry. Performance at subsidiaries, such as JSW Vijayanagar Metallics and JSW Steel Coated Products, will also be important to monitor as these entities contribute significantly to the consolidated bottom line. Future updates will likely center on the execution timeline for the remaining capital spending projects and the progress of the JSW One Platforms IPO.