Jindal Steel (JINDALSTEL) Q2 24/25 earnings summary

Executive summary

• Steel production grew 4% YoY to 1.97 million tons in Q2 FY25, but sales dropped 8% YoY to 1.85 million tons due to plant shutdowns and market conditions.

• Consolidated gross revenue for Q2 FY25 was ₹13,025 Cr, down 8% YoY and sequentially, with net revenue at ₹11,248 Cr.

• Adjusted consolidated EBITDA for Q2 FY25 was ₹2,124 Cr, with EBITDA per ton at ₹11,467, down 15% sequentially.

• PAT for Q2 FY25 was ₹860 Cr, down 38% YoY and sequentially.

• Net debt increased to ₹12,464 Cr, with net debt/EBITDA at 1.21x, below the 1.5x target.

Financial highlights

• Net revenue for Q2 FY25 was ₹11,248 Cr; H1 FY25 net revenue was ₹24,900 Cr.

• Adjusted EBITDA margin per ton for Q2 FY25 was ₹11,467.

• Standalone ASP declined 3% sequentially; cost remained flat as lower input costs were offset by lower volumes and other expenses.

• 50% of sales volume comprised value-added products; value-added product sales increased, with a 55% share in construction and infrastructure.

• Export share rose to 9% from 7% last quarter; quarterly exports of rails reached an all-time high.

Outlook and guidance

• Expansion projects are underway to increase crude steel capacity to 15.9 MTPA and finished steel capacity to 13.75 MTPA by FY27.

• Capex allocation for growth projects totals ₹31,000 Cr, with major investments in Angul and Raigarh expansions.

• Coking coal costs expected to drop another $20–$25/ton in Q3; price hikes of INR 1,000–2,000/ton already implemented in Q3.

• H2 expected to outperform H1, driven by seasonal demand and lower input costs.

• Capex program remains on track, supported by a strong balance sheet and comfortable leverage.