Jindal Steel (JINDALSTEL) Q1 25/26 earnings summary

Executive summary

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

• Adjusted EBITDA rose to INR 2,984 crore, up 35% quarter-on-quarter, with PAT at INR 1,496 crore, driven by higher ASP and lower input costs.

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

• Major projects, including Blast Furnace II and BOF2 at Angul, are on track for commissioning in Q2 FY26, with further expansions and new mining projects progressing.

• Net debt rose to INR 14,400 crore, with net debt to EBITDA at 1.49x, attributed to working capital build-up and capex.

Financial highlights

• Consolidated gross revenue for Q1FY26 was INR 14,336 crore, down 8% sequentially due to lower volumes, partially offset by higher ASP.

• Adjusted EBITDA per ton increased to INR 15,680, up from INR 11,651 in Q4FY25.

• PAT for the quarter was INR 1,496 crore, up from INR 1,099 crore in Q4FY25.

• Capex for the quarter was INR 2,226 crore, mainly for Angul expansion; cumulative capex expensed stands at INR 28,150 crore out of INR 47,043 crore announced.

• Finance costs fell 13% QoQ 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.

• Ongoing investments in steel and ancillary businesses, with annual growth capex of INR 7,500–10,000 crore and a target pre-tax ROCE of 18–20%.

• Coking coal consumption cost expected to fall by $5/ton in Q2; iron ore costs flat quarter-on-quarter.

• Angul expansion progressing, with key facilities like CGL-1 and a 1,710 TPD oxygen plant commissioned; first hot metal tapping from Blast Furnace-2 expected in Q2FY26.

• Utkal B1 mining activities to commence in Q2FY26; slurry pipeline commissioning expected in H2FY26.