Jindal Steel beats the Street; Q1 net profit up 12% to ₹1,496 crore despite 10% revenue drop

Jindal Steel Ltd, formerly known as Jindal Steel and Power Ltd (JSPL), on Tuesday (August 12), reported an 11.9% year-on-year (YoY) increase in net profit at ₹1,496 crore for the first quarter that ended on June 30, 2025, easily beating the forecast.

The company had posted a net profit of ₹1,337 crore in Q1FY25. The CNBC-TV18 poll had predicted a profit of ₹1,119 crore for the quarter under review.

Revenue from operations dipped 9.7% to ₹12,294 crore against ₹13,618 crore year-on-year, narrowly missing the predicted revenue of ₹12,299 crore.

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At the operating level, EBITDA increased 5.8% to ₹3,005 crore in the first quarter over ₹2,840 crore last year. The CNBC-TV18 poll had predicted an EBITDA of ₹2,589 crore for this period.

The EBITDA margin expanded to 24.4% in the April-June quarter versus 20.85% in the year-ago period, again well over the poll’s estimate of 21.05%.

The company reported consolidated net debt of ₹14,400 crore as on June 30, 2025, with a consolidated net debt-to-EBITDA ratio of 1.49x. up from 1.26x.

Production for the quarter stood at 2.09 million tonnes (MT), down 1% quarter-on-quarter (QoQ), while sales were at 1.90 MT, a decline of 10% QoQ. Consolidated gross revenues came in at ₹14,336 crore, down 8% QoQ.

The share of exports increased to 7% in Q1FY26 from 3% in Q4FY25. Adjusted EBITDA rose 20% QoQ to ₹2,984 crore. Profit after tax (PAT) for the quarter was ₹1,496 crore, 36% higher QoQ compared to adjusted PAT.

Angul and other expansion programmes

Total capex for the quarter was ₹2,226 crore, largely driven by expansion projects at Angul. On the Angul expansion, the company said it is in the final stage of commissioning India’s second-largest blast furnace (useful volume 5,499 m³). The blast furnace is ready, and commissioning activities are ongoing, with production expected to commence within this month.

The company is also in an advanced stage of commissioning BOF-2. Jindal Steel has successfully commissioned a 0.20 MTPA continuous galvanising line (CGL-1), marking a significant step in expanding its value-added product portfolio.

Additional recent commissioning under its expansion programme includes a 0.50 MTPA HR skin pass mill for HR pickled & skin passed products, a 3.6 MTPA twin strand slab caster, a 1,710 TPD oxygen plant, a state-of-the-art cut to length (CTL) line for thicknesses ranging from 1.00 mm to 13.00 mm with 2,000 mm width, and an HR slitter with capacity to slit coils from 1.00 mm to 13.00 mm thick.

At Angul, the company produced a 1.00 mm thin hot rolled coil — the first in the world from a conventional hot strip mill. At its Raigarh plant, the company commissioned the world’s largest HR slitter, capable of slitting 25 mm thick coils in 3,000 mm width.

In its mining operations, the company has secured the Roida-I iron ore and manganese block in Odisha. The block has an environmental clearance capacity of 3 MTPA and an estimated reserve of 126.05 MT. Extraction of iron ore from the mine has already commenced.

The results came after the close of the market hours. Shares of Jindal Steel Ltd ended at ₹995.60, up by ₹5.30 or 0.54%, on the BSE today (August 12).

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