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Jindal Steel (JINDALSTEL) investor relations material

Jindal Steel Q1 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 25/26 earnings summary13 Aug, 2025

Executive summary

  • Q1 FY26 saw stable steel production at 2.09 MT, but sales volume declined 10% quarter-on-quarter to 1.90 MT due to early monsoon and inventory buildup, while management reaffirmed full-year guidance.

  • Consolidated gross revenue fell 8% quarter-on-quarter to INR 14,336 crore, with adjusted EBITDA rising to INR 2,984 crore, up 35% sequentially and 20% quarter-on-quarter, driven by higher ASP and lower input costs.

  • Net debt increased to INR 14,400 crore, with net debt/EBITDA at 1.49x, mainly due to working capital buildup and CapEx.

  • Value-added steel sales reached a record 72%, with a strategic focus on downstream products and increased sales to sectors like power, shipbuilding, and infrastructure.

  • PAT for Q1FY26 was INR 1,496 crore, up 36% quarter-on-quarter.

Financial highlights

  • Adjusted EBITDA per tonne stood at INR 1,568, up 35% sequentially; adjusted EBITDA for the quarter was INR 2,984 crore.

  • Net debt increased by INR 2,443 crore sequentially, with net debt/EBITDA at 1.49x.

  • CapEx for the quarter was INR 2,226 crore, mainly for Angul expansion; cumulative spend INR 28,150 crore out of INR 47,043 crore announced.

  • Operating costs decreased 15% quarter-on-quarter, benefiting from lower coking coal prices and reduced conversion costs.

  • Finance costs fell 13% quarter-on-quarter due to loan repayments and lower interest rates.

Outlook and guidance

  • Management remains committed to full-year production and sales guidance despite Q1 volume decline.

  • Angul expansion is in final commissioning, with India's 2nd largest blast furnace set to commence production in Q2FY26.

  • Q2 coking coal costs expected to be $5/tonne lower; iron ore costs flattish; domestic steel prices currently 5–10% lower than Q1.

  • Inventory buildup in Q1 expected to be liquidated in Q2, improving cash position and reducing net debt.

  • Value-added steel ramp-up to continue, with auto segment and export volumes expected to increase quarter-on-quarter.

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