Jindal Steel Ltd.Volume Surge Amid Margin Pressure

Jindal Steel reported robust volume growth in Q3 FY26 with record production of 2.51 million tons, up 25% quarter-on-quarter, and sales of 2.28 million tons, up 22% quarter-on-quarter, driving gross revenue to Rs 15,172 crore.

However, margins faced pressure with reported EBITDA at Rs 1,593 crore and EBITDA per ton at Rs 6,981, impacted by one-time blast furnace startup costs of Rs 350 crore. Excluding this non-recurring expense, underlying EBITDA per ton stood healthier at Rs 8,516. Blended steel realization declined Rs 3,000 per ton due to product mix shift toward lower-margin HRC during capacity ramp-up and increased captive consumption of by-products.

Net debt increased to Rs 15,443 crore with leverage at 1.72x, above the sub-1.5x target, reflecting peak CAPEX phase. Management maintained optimistic Q4 outlook citing steel price recovery of Rs 3,000-3,500 per ton since December 2025, normalization of startup costs, and upcoming BOF3 commissioning reaching 15.6 MTPA steelmaking capacity. The company remains on track for 8.5-9 million ton annual sales guidance.