capacity expansion · Announced at Q2 FY27 results
JSW Utkal Steel, Odisha: Phase-II Expansion
- Expected benefit
- Addition of 5mtpa steelmaking capacity
- Risks
- Execution and commodity cycle risks
- Investment
- ₹16,150 crore
Q2 FY27 · NSE: JSWSTEEL
JSW Steel
Results filed 23 October 2026 · Market cap ₹3,04,704 crore · PE 19.4
- Revenue
- +20.7%
- on a year ago
- EBITDA
- +42.2%
- on a year ago
- Profit to shareholders
- +225.3%
- on a year ago
- EBITDA margin
- 18.6%
- −1.2 pts on last quarter
JSW Steel reported consolidated Q2 FY27 revenue from operations of ₹54,486 crore and net profit of ₹5,359 crore, achieving record sales volumes of 7.46 mt supported by the ramp-up of BF-3 at Vijayanagar. Net debt reduced to ₹44,482 crore (1.28x Net Debt/EBITDA) following the completion of the JFE transaction and deleveraging of roughly ₹37,000 crore, earning credit rating upgrades. The company committed to new projects including Utkal Phase-II and the Vasind CRM complex, bringing remaining capex to ₹148,402 crore to be deployed over the next 5-6 years while maintaining FY27 volume guidance of 29.75 mt production and 28.6 mt sales.
| Q2 FY27 | Q1 FY27 | vs previous quarter | Q2 FY26 | vs a year ago | |
|---|---|---|---|---|---|
| Revenue | 54,486 | 47,364 | +15.0% | 45,152 | +20.7% |
| Operating profit (EBIT) | 7,920 | 7,246 | +9.3% | 4,561 | +73.6% |
| Operating margin | 14.5% | 15.3% | −76 bps | 10.1% | +443 bps |
| Other income | 441 | 724 | −39.1% | 284 | +55.3% |
| Exceptional items | 0 | 0 | – | 0 | – |
| Profit before exceptional items and tax | 6,759 | 6,258 | +8.0% | 2,432 | +177.9% |
| Profit to shareholders | 5,279 | 4,651 | +13.5% | 1,623 | +225.3% |
| Share of joint ventures' and associates' profit | 292 | −98 | n.m. | −88 | n.m. |
| Earnings per share (₹) | 21.63 | 19.05 | +13.5% | 6.66 | +224.8% |
Source: JSW Steel Limited’s filing to NSE, 23 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.
These notes are from the presentation and press release. The concall transcript isn’t filed yet; the notes are rewritten when it is.
What stood out
- Significant deleveraging achieved following the JSW JFE JV transaction, bringing net debt down to ₹44,482 crore and leverage to 1.28x Net Debt/EBITDA.
Source
Presentation slide 4 & 37: 'Deleveraging of ~₹37,000 crore completed with Net Debt reducing to ₹44,482 crore as on September 30, 2026' and leverage reduced to 1.28x. - Approval of major capex projects totaling over ₹26,000 crore, raising total balance capex to be spent over 5-6 years to ₹148,402 crore.
Source
Presentation slide 39: New projects approved at Q2 results include Utkal Phase-II 5mtpa (₹16,150 cr), JVML Phase-II pellet/BOF/caster (₹4,950 cr), Vasind CRM complex (₹2,600 cr), and MdR Mozambique (₹3,150 cr). - Net profit grew 225.6% YoY to ₹5,359 crore, significantly outpacing EBITDA growth due to reduced interest costs and depreciation following BPSL deconsolidation.
Source
Presentation slide 32: Finance costs dropped from ₹2,413 crore (Q2 FY26 reported) / ₹2,255 crore (Q2 FY26 PF) to ₹1,602 crore; Share of JV profit shifted to +₹292 crore from -₹88 crore (Q2 FY26 reported).
Guidance
| Metric | Guidance | Period |
|---|---|---|
Consolidated Crude Steel ProductionSourcePresentation slide 27: 'Guidance for JSW Steel Consolidated Volumes for FY27: Production 29.75mt & Sales 28.6mt'. | 29.75 mt | FY27 |
Consolidated Steel SalesSourcePresentation slide 27: 'Guidance for JSW Steel Consolidated Volumes for FY27: Production 29.75mt & Sales 28.6mt'. | 28.6 mt | FY27 |
Consolidated Capex SpendSourcePresentation slide 39: 'Capex spend for FY27 expected at ₹22,000-24,000 crores.' | ₹22,000-24,000 crore | FY27 |
Tailwinds
- Record quarterly sales and crude steel production driven by BF-3 ramp-up at Vijayanagar.
Source
Presentation slide 4 & 33: 'Highest ever consolidated crude steel production of 7.27mt in Q2, up 5% YoY' and 'Highest ever consolidated steel sales of 7.46mt, up 13% YoY' with BF-3 reaching ~90% utilisation. - Significant reduction in financing costs due to debt repayment and lower interest rates.
Source
Presentation slide 33: 'Interest cost down by 29% YoY and 6% QoQ, primarily driven by lower debt levels and lower interest rates.' - Credit rating upgrades across domestic and international rating agencies.
Source
Presentation slide 37: Moody's upgraded to Investment Grade Baa3 (Stable), Fitch to BB+ (Positive), and CARE, ICRA & India Ratings upgraded to AA+ (Stable).
Headwinds
- Cost inflation at domestic operations, largely due to higher coking coal and other input costs.
Source
Presentation slide 33 & 34: 'Costs at India operations increased mainly due to higher coking coal and other input costs on a QoQ basis', driving a ₹965 crore cost headwind on QoQ adjusted EBITDA. - Volume decline in US Ohio operations.
Source
Presentation slide 27 & 49: US Ohio crude steel production fell 16% YoY to 0.20 mt and sales declined 30% YoY to 0.18 mt. - Lower net sales realisations sequentially impacting profitability.
Source
Presentation slide 34: Consolidated adjusted EBITDA bridge reflects a ₹387 crore negative impact from NSR QoQ.
New businesses and products
capacity expansion · Announced at Q2 FY27 results
Vasind 1.8mtpa CRM Complex
- Expected benefit
- Expansion of value-added downstream capacity
- Investment
- ₹2,600 crore
Source
Presentation slide 4 & 39: '1.8mtpa CRM Complex at Vasind' capex approved at ₹2,600 crore.capacity expansion · Announced at Q2 FY27 results
JVML Phase-II Additional Facilities (8mtpa Pellet Plant, BOF, and Caster)
- Expected benefit
- Integrated steelmaking infrastructure to support 5mtpa expansion
- Timeline
- FY30 for JVML Phase-II
- Investment
- ₹4,950 crore
Source
Presentation slide 39 & 40: '8mtpa Pellet plant at JVML, and BOF and Caster at JVML Phase-II' capex of ₹4,950 crore; to be commissioned by FY30.capacity expansion · Capex approved at Q2 FY27 results
MdR Mozambique Coking Coal Mine Expansion and Indian Mines Development
- Expected benefit
- Expansion of MdR Mozambique coking coal mine to ~9mtpa and raw material security
- Risks
- Mining regulatory and geopolitical risks
- Investment
- ₹3,150 crore
Source
Presentation slide 4 & 39: 'Expansion of MdR Mozambique Coking Coal mine to 9mtpa, and Development of Iron Ore and Coking Coal Mines in India' capex of ₹3,150 crore.capacity expansion · Baler commissioned in Q2 FY27; shredder under commissioning
Khopoli Scrap Processing Centre
- Expected benefit
- 0.5mtpa processed scrap for resource circularity and decarbonisation
- Timeline
- Shredder to be commissioned in Q3 FY27
Source
Presentation slide 4 & 15: '0.5 mtpa facility at Khopoli: Baler commissioned in Q2 FY27 and Shredder to be commissioned in Q3'.Things to check
- Profit grew far faster than operating profit: other income, tax or one-offs did some of the work
- Very large long-term capital expenditure pipeline with ₹148,402 crore remaining to be spent over 5-6 years, posing capital commitment and execution risks across multiple greenfield and brownfield sites.
Source
Presentation slide 39: Balance capex to be spent stands at ₹148,402 crore, with FY27 spend projected at ₹22,000-24,000 crore.
How the call went
Not yet: there’s no transcript.
Numbers against the story
Net profit (+225.6% YoY) expanded substantially faster than reported EBITDA (+42.0% YoY / +44% on screen) not due to higher other income or exceptional gains (exceptional items were nil), but because of structural changes: finance costs fell 29% YoY following the ₹37,000 crore deleveraging post the JFE JV deal, depreciation declined 13.9% YoY post the deconsolidation of BPSL, and the share of JV profits swung to +₹292 crore from -₹88 crore. Operationally, while narrative emphasizes record consolidated volumes, QoQ EBITDA gains were muted (+6.1% QoQ adjusted EBITDA) as a ₹965 crore surge in coking coal/input costs and a ₹387 crore negative NSR offset ₹1,893 crore in volume benefits.
Sources
- Investor presentation · filed 23-Oct-2026
- Figures: the company’s results filing with NSE, linked under the table.
Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.