JSW Steel profit jumps +225.58% YoY, but margin slips QoQ
Consolidated operating margin fell 1.24 percentage points as expenses grew faster than revenue, but remained 2.60 points above the peer median.
Filed 23 Oct 2026, 14:53 IST · JSW Steel Ltd (JSWSTEEL)
Key takeaways
- Consolidated operating margin fell 1.24 percentage points QoQ to 18.57% as expenses grew +16.81%, faster than revenue growth of +15.04%.
- Net profit rose +225.58% YoY, helped by a 5.78-percentage-point fall in the tax rate and a -33.61% decline in interest costs.
- The stock fell -2.83% after the results, a larger move than its 1.4% median absolute reaction across the past eight result dates.
Price around the results
Revenue momentum meets sequential cost pressure
JSW Steel's consolidated revenue grew +15.04% QoQ and +20.67% YoY to Rs 54,486 cr. QoQ expenses rose +16.81%, outpacing revenue and pulling operating margin down 1.24 percentage points to 18.57%.
Lower interest and tax rates lift reported profit
Interest costs fell -6.43% QoQ and -33.61% YoY, helping profit before tax rise +14.46% sequentially and +200.81% annually despite the margin decline from the previous quarter. The YoY tax rate was 5.78 percentage points lower, which also flattered net profit growth. Other income accounted for 10.40% of pre-tax profit, so reported earnings included a meaningful non-operating contribution.
Margin remains above peers after a one-quarter pullback
Operating margin had risen from 14.12% in Q3FY26 to 16.87% in Q4FY26 and 19.81% in Q1FY27 before easing to 18.57% in Q2FY27. This is a sequential reversal after three quarters of improvement, rather than a continuing multi-quarter decline. The margin was 2.60 percentage points above the 15.97% median for the 15 Commodities peers that had reported.
Market reaction was negative but results-day volatility is mixed
The stock fell -2.83% on the results date, with trading volume at 2.55 times the reference level. Across the past eight result reactions, the stock rose four times and fell four times, while the median absolute move was 1.4%. The latest decline was therefore larger than its typical post-results move, but not outside a mixed historical pattern.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹54,486 cr | ₹47,364 cr | +15.04% | +20.67% |
| Other income | ₹733 cr | ₹626 cr | +17.09% | +273.98% |
| Expenses | ₹44,366 cr | ₹37,981 cr | +16.81% | +16.64% |
| Operating profit | ₹10,120 cr | ₹9,383 cr | +7.85% | +42.23% |
| Operating margin (%) | 18.57% | 19.81% | — | — |
| Interest | ₹1,602 cr | ₹1,712 cr | -6.43% | -33.61% |
| Depreciation | ₹2,200 cr | ₹2,137 cr | +2.95% | -13.86% |
| Profit before tax | ₹7,051 cr | ₹6,160 cr | +14.46% | +200.81% |
| Tax | ₹1,692 cr | ₹1,464 cr | +15.57% | +142.41% |
| Net profit | ₹5,359 cr | ₹4,696 cr | +14.12% | +225.58% |
| EPS (₹) | ₹21.63 | ₹19.05 | +13.54% | +224.77% |
Operating margin of 18.57% compares with a Commodities sector median of 15.97% across 15 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.83% | -2.44% |
Volume on the results session was 2.55× its 20-day average.
What to watch
- Whether operating margin recovers from 18.57% after the 1.24-percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue, against the Q2FY27 comparison of +16.81% versus +15.04%.
- Whether other income remains a material contributor after accounting for 10.40% of pre-tax profit.