JSW Steel Q1: consolidated PAT more than doubles YoY to ₹4,696 Cr, beats Street on margin lift

JSW Steel reported consolidated Q1 FY27 net profit of ₹4,696 Cr, up 112.6% from ₹2,209 Cr a year ago and comfortably ahead of the Street's ~₹3,180 Cr (14-broker average, Informist) and even Nuvama's top-of-range ₹3,740 Cr — a clear beat. Revenue from operations was ₹47,364 Cr, +9.8% YoY on a reported basis; adjusted for the deconsolidation of Bhushan Power & Steel (BPSL, out from 27-Mar-2026), the like-for-like topline rose ~18.8% versus the ₹39,880 Cr proforma base, so the headline growth understates the underlying momentum. There are no exceptional items this quarter. The profit surge is a margin story, not just volume. Consolidated EBITDA margin expanded to 19.8% from 17.8% a year ago (reported EBITDA ₹9,383 Cr, +38% YoY), and net profit margin roughly doubled to 9.9% from 5.1% in a weak year-ago quarter — driven by higher steel realisations (Kotak had pencilled in ~11% higher standalone realisation on in-quarter price hikes), partly offset by richer coking coal and input costs, which management explicitly flagged. Best-ever Q1 steel sales of 6.25 mnT (+4% YoY) and lower depreciation/finance costs added to the lift. The sequential optics are misleading: reported PAT looks down ~76% against Q4 FY26's ₹19,243 Cr, but that quarter was inflated by a one-off ₹17,888 Cr BPSL loss-of-control gain; stripping it out, Q4 underlying profit was ~₹1,355 Cr and EBITDA actually grew 8% QoQ this quarter — so the underlying trend is up, not down. Against management's own guidance the quarter delivers: the May concall promised Q1 margin expansion despite a ~₹3,000/tonne near-term cost increase being offset by realisations, and that is exactly what landed. Crude steel production of 6.59 mnT (+3% YoY) was held back by the Vijayanagar BF-3 shutdown for its 3.0→4.5 MTPA upgrade; the furnace was lit up in June, is already >80% ramped and adds incremental volume from Q2, keeping the FY27 sales guidance of 28.6 mnT (~10% growth) on track. Balance sheet improved — net debt fell ₹7,713 Cr QoQ to ₹46,157 Cr, Net Debt/EBITDA eased to 1.46x from 1.81x — even as Q1 capex ran ₹4,869 Cr against the ₹22,000-24,000 Cr FY27 plan. Concurrent corporate actions include the Rayalaseema (Kadapa) 1 MTPA EAF groundbreaking on 3 July, the finalised NCLT amalgamation of ARCL/MCL/JRDL (behind the standalone restatement), the pending BMM Ispat merger (targeted Q4 FY27), and a 1.6 Cr-share promoter pledge release. Standalone PAT was ₹2,826 Cr (+27.5% YoY) on revenue of ₹35,539 Cr; the far larger consolidated jump reflects strong subsidiary contribution (JVML PAT ₹1,223 Cr, EBITDA +138% YoY as ramp-up gathered pace). The consolidated-vs-standalone growth divergence is material and is driven by that subsidiary ramp plus the year-ago consolidated base being depressed — readers should anchor on the consolidated ₹4,696 Cr.