Jindal Steel Ltd.EBITDA/ton ₹11,937 despite 15% volume dip

Jindal Steel reported Q1 FY27 consolidated adjusted EBITDA of ₹2,667 Cr and profit after tax of ₹844 Cr.

A plant maintenance shutdown cut sales volume 15% and revenue about 8% sequentially, but average realisation rose about ₹7,500 a ton and adjusted EBITDA per ton rose ₹1,843 to ₹11,937. Value-added products reached 66% of sales from 61%. Finance cost rose to ₹548 Cr as expansion assets were capitalised, and net debt of ₹15,927 Cr put net debt to EBITDA at 1.71x, with management confident of getting below 1.5x in Q2 FY27.

Coking coal cost rose about $23 a ton, with a further $12 to $15 expected in Q2. This was the first call under Managing Director V.R. Sharma, Chief Operating Officer Rajiv Kumar and Chief Financial Officer Sandeep Modi. Management plans to lift the second Angul blast furnace to 13,000 tons a day by December, commission the slurry pipeline in the first half of August, and spend ₹7,000 Cr to ₹10,000 Cr a year on value-added capacity without new borrowing.