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Steel Soars: JSW & Tata Defy Market Slump
18 Jul
Summary
- Steel stocks are trading near 52-week highs, outperforming the market.
- JSW Steel Q1FY27 volumes grew 4% YoY to a record 6.25 million tonnes.
- JSW Steel's net profit surged 112.6% YoY to Rs 4,696 crore in Q1FY27.
Steel stocks are demonstrating remarkable resilience, trading near their 52-week peaks amidst a general market downturn. JSW Steel announced exceptional results for its first quarter of fiscal year 2027 (ending June 2026), with consolidated steel sales volumes reaching an all-time high of 6.25 million tonnes, a 4% year-over-year increase.
This surge in volume, particularly in institutional sales which rose 5% year-over-year, contributed to a 9.8% increase in consolidated revenue to Rs 47,364 crore. JSW Steel's realisations also improved by nearly 5.9% year-over-year to Rs 75,782 per tonne. A tight focus on costs led to a 220 basis points expansion in operating profit margin to 19.8%.
Consequently, JSW Steel's consolidated net profit for Q1FY27 more than doubled, escalating by 112.6% to Rs 4,696 crore compared to the same period last year. This contrasts with Q1FY26, where flat revenues and declining realisations were offset by a significant drop in mining costs.
Tata Steel's domestic operations also showed strength, with delivery volumes up 8.8% year-over-year to 5.17 million tonnes in the June 2026 quarter. The company's total delivery volumes reached 7.38 million tonnes. Investors remain optimistic about the sector's outlook, especially with China curtailing production.
