Jindal Steel Ltd.Strong Growth Amid Cautious Outlook

Jindal Steel delivered robust FY26 performance with consolidated EBITDA rising nineteen percent year-on-year to Rs 5,560 crore and PAT surging twenty-seven percent to Rs 3,185 crore, supported by eight percent volume growth to 2.57 million tons.

The company commissioned its Indonesia melt shop with 1.2 million TPA capacity ahead of schedule, raising total melting capacity to 4.2 million TPA. Management maintains an ambitious FY29 sales target of 3.5 million TPA, implying double-digit CAGR growth. For FY27, the company guides for seven to nine percent volume growth with H1 EBITDA per ton estimated at Rs 18,000 to Rs 20,000, subject to revision. The balance sheet remains strong with net debt-to-EBITDA at 0.55x and debt-to-equity at 0.15.

However, management expressed caution regarding energy cost pressures that increased 2.5 to 3x due to Middle East crisis, QCO suspension enabling substandard imports, and global trade uncertainties. The company is diversifying energy sources through coal gasification, green hydrogen plants, and natural gas to mitigate future disruptions. Capex of Rs 2,600 crore is planned for FY27 supporting ongoing expansion.