JSW Infrastructure profit falls as interest costs surge and margins narrow
Revenue grew 17.01% year on year, but faster cost growth, higher interest and a higher tax rate pulled net profit down 11.00%.
Filed 27 Oct 2026, 16:33 IST · after market close · JSW Infrastructure Ltd (JSWINFRA)
Key takeaways
- Consolidated net profit fell 11.00% year on year as interest expense rose 145.50% and the tax rate increased 3.48 percentage points.
- Operating margin narrowed 2.63 percentage points year on year because expenses grew 22.96%, faster than revenue growth of 17.01%.
- Other income contributed 43.73% of pre-tax profit, making reported earnings more dependent on non-operating income.
Price around the results
Revenue growth did not reach the profit line
Consolidated revenue rose 17.01% year on year to Rs 1,480.92 cr, while operating profit grew only 10.62%. Management said the company handled 29.4 MT of cargo in Q2FY27 and that India operations grew 8% year on year. The earnings conversion was weakened by interest expense of Rs 256.77 cr, up 145.50% year on year, and depreciation of Rs 175.08 cr, up 17.88%.
Cost growth pushed operating margin lower
Expenses increased 22.96% year on year against 17.01% revenue growth, narrowing operating margin by 2.63 percentage points to 45.54%. Sequentially, expenses also grew faster than revenue, with growth of 4.60% versus 2.50%, trimming margin by 1.10 percentage points. This was the second consecutive quarterly decline in operating margin, from 50.53% in Q4FY26 to 46.64% in Q1FY27 and 45.54% in Q2FY27.
Reported profit was supported by other income
Other income rose 76.68% year on year and accounted for 43.73% of pre-tax profit, so the quality of reported earnings was weaker than operating profit alone suggests. The tax rate increased 3.48 percentage points year on year to 23.87%, also weighing on net profit. Operating margin was 2.09 percentage points below the 47.63% median for the eight Services peers that had reported the quarter.
Expansion plans remain central to management's outlook
Management said ports operating EBITDA is targeted at Rs 2,600 cr in FY27 and Rs 4,300 cr in FY28, while logistics operating EBITDA is targeted at Rs 400 cr and Rs 700 cr over the same periods. The company said the Tuticorin 7mtpa dry-bulk berth carries estimated capex of Rs 600 cr and is expected to be completed by Q4 FY27. Management also outlined a 2mtpa LPG expansion at Jaigarh with estimated capex of Rs 900 cr and planned marine operations from March 2027.
No immediate market reaction after the late filing
The results were filed after market close, so there is no market reaction to report yet. In the eight recent result-day observations, the stock rose five times and fell three times, with a median absolute move of 4.22%, indicating mixed but generally material reactions.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,481 cr | ₹1,445 cr | +2.50% | +17.01% |
| Other income | ₹189 cr | ₹57 cr | +231.95% | +76.68% |
| Expenses | ₹806 cr | ₹771 cr | +4.60% | +22.96% |
| Operating profit | ₹674 cr | ₹674 cr | +0.09% | +10.62% |
| Operating margin (%) | 45.54% | 46.64% | — | — |
| Interest | ₹257 cr | ₹102 cr | +151.61% | +145.50% |
| Depreciation | ₹175 cr | ₹166 cr | +5.60% | +17.88% |
| Profit before tax | ₹431 cr | ₹463 cr | -6.84% | -6.94% |
| Tax | ₹103 cr | ₹105 cr | -2.18% | +8.91% |
| Net profit | ₹328 cr | ₹358 cr | -8.21% | -11.00% |
| EPS (₹) | ₹1.35 | ₹1.65 | -18.18% | -22.41% |
Operating margin of 45.54% compares with a Services sector median of 47.63% across 8 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company handled 29.4 MT of cargo in Q2 FY27, while India operations recorded 8% year-on-year growth.
Guidance & outlook
- Ports operating EBITDA is targeted at ₹2,600 crore in FY27 and ₹4,300 crore in FY28.
- Logistics operating EBITDA is targeted at ₹400 crore in FY27 and ₹700 crore in FY28.
Expansion
- The Tuticorin project includes a 7mtpa dry-bulk berth with estimated capex of ₹600 crore and is expected to be completed by Q4 FY27.
- The Kolkata Container Terminal has 0.45 million TEUs capacity, estimated capex of ₹740 crore, and expected completion in Q3 FY28.
- The 2mtpa LPG expansion at Jaigarh has estimated capex of ₹900 crore, with marine operations planned from March 2027.
- Dharamtar and Jaigarh are planned to expand by 36mtpa with estimated capex of ₹2,359 crore.
- The Jatadhar Port Phase I has 30mtpa capacity and estimated capex of ₹3,050 crore, with mechanization due by March 2027.
New initiatives
- The logistics strategy includes expanding into inland container depots and multi-modal logistics parks.
- The company is targeting 110 specialised rakes under government GPWIS and LSFO initiatives and 140 container rakes in the medium term.
What to watch
- Whether operating margin recovers from 45.54% after two consecutive quarterly declines.
- Whether interest expense moderates from Rs 256.77 cr.
- Whether ports operating EBITDA moves toward management's FY27 target of Rs 2,600 cr.