JSW Steel Q2 results: Net profit likely to surge up to 186% YoY, driven by higher metal prices and price hike

JSW Steel will announce its September quarter earnings on Friday, October 23. According to experts, the company could report strong growth in profit, aided by higher steel prices and resilient demand from channel restocking ahead of expected price hikes.

JSW Steel’s net sales could rise 19% to 21% YoY to between ₹53,970 crore and ₹54,550 crore. That would also be a jump of 14% to 15% over the previous quarter. The company reported net sales of ₹47,364 crore in the previous quarter and ₹45,152 crore in the September quarter of FY26. Higher sales could come from strong volume growth during the quarter.

Net profit could rise sharply, by 137% to 186% YoY, to between ₹3,900 crore and ₹4,700 crore. JSW Steel reported a net profit of ₹4,696 crore in the previous quarter and ₹1,646 crore in the same quarter last year. Healthy demand from sectors such as automobiles and infrastructure, along with a pick-up in construction activity after the monsoon, could support profitability.

Investors will look for management commentary on the overall business outlook, sales volumes, key financial metrics and the status of capital expenditure.

Ahead of the Q2 results, JSW Steel shares closed marginally lower, down 0.2% at ₹1,220 on Thursday, October 22. The stock has gained nearly 5% so far this year.

JSW Steel share price: technical outlook ahead of Q2 results

JSW Steel’s recovery has hit a hurdle just before its Q2FY27 results. The stock fell about 10% from the ₹1,300 zone in late September to a low of ₹1,163 in early October. It then bounced back sharply, but the rebound stopped at the 50-day EMA.

For now, the stock is caught between two levels. It is just below its 20-day EMA and well below its 50-day EMA. The 20-day EMA has been below the 50-day EMA since late September, so the short-term trend remains weak. However, Thursday’s long lower shadow shows that buyers stepped in near ₹1,200 and pushed the stock back up from its intraday low. The Directional Movement Index (DMI) shows a stock with no clear direction, while the ADX at 20.5 has started to ease, which also points to a weakening trend.

JSW Steel options: a narrow range priced in

The options market is pricing in a fairly small move for JSW Steel of ±2.8% by the October 27 expiry, which puts the expected range at roughly ₹1,190 to ₹1,260.

The stock’s history supports this. In 8 of the last 9 quarters, JSW Steel’s next-day move after its results stayed within ±2.5%. The only bigger move was a 4.4% rise after the Q3FY26 results. Timing also matters. If the results come out after market hours on Friday, the market will react on Monday, October 26, and the October contracts expire the very next day.

Options strategy for JSW Steel Q2 results

If you expect the stock to stay in a range: A short straddle, selling the 1,230 call and put, could be considered. The strategy makes a profit if JSW Steel stays between roughly ₹1,195 and ₹1,265 until expiry. However, the premium collected is small, and the range is narrow, so even a moderate move could cause losses. Strict stop-losses are important.

If you expect a sharp move after the results: A long straddle, buying the 1,230 call and put, could be considered. A break above ₹1,261 or below ₹1,163 after the results could carry the stock beyond the expected range. The strategy makes a profit if JSW Steel moves below ₹1,195 or above ₹1,265 by expiry. However, with expiry so close, the move needs to happen almost immediately.

If you want to trade a move in one direction: Traders can wait for the stock to break out of its range before taking a position. If JSW Steel closes above ₹1,261, a bull put spread could be considered. If it closes below ₹1,163, a bear call spread may be more suitable. Given the short time to the October expiry, traders may consider November contracts for directional trades.