Jindal Steel (JINDALSTEL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw stable production at 2.09 MT, but a 10% sequential decline in sales volume to 1.90 MT due to early monsoon, inventory build-up, and post-Q4 replenishment, with management reaffirming full-year volume guidance.

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

• Value-added product sales reached a record 72% of total, among the highest in the industry, driven by downstream and strategic sector focus.

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

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

Financial highlights

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

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

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

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

• Operating costs decreased 15% QoQ, benefiting from lower coking coal prices and reduced maintenance expenses.

Outlook and guidance

• Management remains committed to full-year production and sales guidance, with continued investment in steel and ancillary businesses and annual growth CAPEX of INR 7,500–10,000 Cr.

• Net debt to EBITDA expected to remain below 1.5x through the cycle, with liquidity maintained at INR 2,000 Cr.

• 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 commissioned and further milestones expected in FY26.

• Domestic steel prices are currently 5%-7% lower than Q1, but early signs of demand recovery are visible.