Jindal Steel has reiterated its quarterly sales volume target of ~2.5 million tonnes for FY26, signaling confidence in its growth plans despite a challenging demand environment and seasonal weakness in Q2. The company has also approved a ₹4,925 crore capex plan for the second half of FY26, as it moves toward expanding production capacity to 15.6 million tonnes by FY26.
Jindal Steel continues to align its long-term strategy with India’s strong steel demand trajectory, supported by projections that India will drive over 60% of global steel demand growth in CY26, according to the World Steel Association.
Financial Highlights – Q2 FY26
| Metric | Q2 FY26 | Q1 FY26 | YoY Change | QoQ Change |
|---|---|---|---|---|
| Gross Revenue | ₹13,505 crore | ₹14,336 crore | -3.70% | -5.80% |
| Adjusted EBITDA | ₹1,875 crore | ₹2,984 crore | -11.70% | -37.20% |
| Profit After Tax | ₹635 crore | ₹1,496 crore | -26.20% | -57.60% |
| Steel Production | 2.00 MT | 2.09 MT | +1.50% | -4.30% |
| Steel Sales | 1.87 MT | 1.90 MT | +1.10% | -1.60% |
The quarter was impacted by planned shutdowns and seasonal market dynamics, leading to sequential declines in EBITDA and profitability.
Key Business Updates
- Capex commitment: ₹4,925 crore earmarked for H2 FY26
- Value-added products share: Record 73% of sales in Q2
- Exports: Rose to 10% of sales (vs. 7% in Q1)
- New facilities commissioned:
- 4.6 MTPA Blast Furnace-2
- 3 MTPA Basic Oxygen Furnace-2 at Angul
- First-ever CGL dispatch and CR product exports initiated
Market Outlook
The company expects:
- Coal costs to rise $3–5/tonne in Q3
- Iron ore prices to remain stable
- Domestic steel prices have corrected 2–3% vs Q2 levels
- HRC prices remain under pressure, dragged by softer Chinese pricing
Despite near-term pressure, Jindal Steel remains confident about medium-term demand supported by India’s infrastructure and manufacturing push.
Management View
The company maintained its FY26 quarterly volume guidance but will formally share FY26-27 volume expectations in its Q4 earnings call. Focus remains on capacity expansion, cost control, and strengthening the value-added product mix to navigate price volatility.
Stock Performance Snapshot
| Timeframe | Return |
|---|---|
| 1 Day | 0.0% |
| 5 Days | +6.09% |
| 1 Month | +0.64% |
| 6 Months | +19.53% |
| 1 Year | +16.50% |
| 5 Years | +459.06% |
Jindal Steel’s long-term strategy remains anchored in expansion, premium product contribution, and export growth, positioning the company to capitalize on India’s rising steel intensity.
