JSWSTEEL Q1 FY27 earnings call.
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Revenue
₹47,364 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹9,373 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
JSW Steel delivered a solid Q1 FY27 with consolidated revenue of ₹47,364 crore and EBITDA of ₹9,373 crore (20% margin), alongside PAT of ₹4,696 crore. Production grew 3% YoY to 6.59 million tons, with flat sales surging 9% YoY driven by strong auto (+18%) and renewable (+25%) sectors. The company became a net importer this quarter amid 22% QoQ import growth, primarily from Japan, Russia, and China, though the government has initiated anti-dumping investigations. Capacity utilization improved to 94% with BF3 at Vijayanagar now ramping up to 80%. The balance sheet strengthened post-BPSL deleveraging with net debt at ₹45,750 crore and leverage at 1.46x, well below the 2.5x comfort level. Management projects Q2 will see higher volumes from BF3 ramp-up and Ohio operations, though coking coal costs will be elevated by $12-15/ton; these should moderate in Q3 as spot prices decline. The growth capex guidance of ₹22,000-24,000 crore for FY27 remains intact, with the Karapa 1MT EF project targeted for FY29 commissioning. Key risk is sustained import pressure combined with seasonal Q2 weakness in long steel prices, though management remains constructive on India's 7-9% steel demand growth trajectory.
Colored figures show movement against the previous available record.
Guidance to track
- Capital expenditure guidance for FY27 remains at ₹22,000-24,000 crore, covering growth projects including Dolvi Phase 3, Vijayanagar expansion, and downstream facilities.
- Domestic steel demand expected to grow at 7-9% in FY27, adding incremental demand of 12-13 million tons, supported by public capex, improving private capex, and robust auto sector.
- Coking coal costs expected to be higher by $12-15 per ton in Q2; however, coal prices have recently started declining and should benefit Q3 results. Iron ore costs also trending down.
- By calendar year 2028 when Mozambique mine starts, captive coking coal (domestic ~20% + Mozambique ~20% + Australia ~10%) should cover approximately 50% of total requirement.
Risks flagged
- India became a net importer in Q1 with imports growing 22% QoQ and exports falling 16% QoQ. Imports from FTA countries like Japan, Russia, and China have increased despite safeguard duties in place.
- Long steel prices saw significant correction in Q1 with TMT spot prices declining 7,000-8,000 rupees/ton from Q1 beginning levels. Wire rod also corrected 750-1,000 rupees/ton. This impacts Q2 as well.
- Coking coal prices increased ~$17/ton vs guidance of $12-15, with additional $20/ton impact from Middle East conflict (shipping, bunker costs). Gas prices also elevated. Q2 will see $12-15 further increase before moderating in Q3.
- Retail sales experienced pressure due to higher imports and channel de-stocking. Additionally, monsoon typically impacts project activity and rural demand, though management expects H2 to be stronger seasonally.
Key quotes
- Our consolidated revenues during the quarter 1 FI27 were 47,364 crores, adjusted EBITDA stood at 9,373 crores with an EBITDA margin of 20%. While PAT stood at 4,696 crores.
- India's steel consumption remained strong and grew by 8.3% in quarter 1. However, in quarter 1, India has become a net importer of steel. Imports grew by 22% quarter on quarter and exports fell quarter on quarter by about 16%.
- Our leverage and gearing have further dropped versus last quarter to 1.46 and 42 respectively. Net debt stands at 45,750 crores and is substantially down from FI25. However, we would like to reiterate that our comfort level will be to keep the leverage below 2.5.
- Domestic steel demand is expected to grow at a healthy rate of 7 to 9% in FY27 and we expect to add an incremental demand of 12 to 13 million tons in India.
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