Q1 2026 Jindal Steel Ltd Earnings Call Transcript
Key Points
- Jindal Steel Ltd (BOM:532286) reported a 35% increase in consolidated adjusted EBITDA per tonne, reaching INR 15,680 per tonne, driven by higher average selling prices (ASP) and lower input costs.
- The company successfully commissioned its first 0.2 million tonne continuous galvanizing line at Angul, marking a significant milestone in its journey to deliver high-quality, value-added steel products.
- Jindal Steel Ltd (BOM:532286) maintained a strong balance sheet with a net debt-to-EBITDA ratio of 1.49 times, underscoring its financial stability.
- The company achieved a significant reduction in coking coal costs by $11 per tonne, aligning with its guidance and contributing to improved financial performance.
- Jindal Steel Ltd (BOM:532286) has secured the Roida-1 iron ore and manganese block in Odisha, with a capacity of 3 million tonnes per annum, enhancing its raw material security.
- Sales volume declined by 10% quarter-on-quarter due to inventory replacement and the early onset of monsoon, impacting overall revenue.
- Consolidated gross revenue fell by 8% quarter-on-quarter to INR 14,336 crores, primarily due to lower sales volume.
- India remained a net importer of steel for the fifth consecutive quarter, with imports exceeding exports, affecting domestic market dynamics.
- Domestic steel prices, particularly HRC and TMT, experienced volatility, with prices correcting due to weak domestic demand and seasonal factors.
- The company's net debt increased by INR 2,443 crores sequentially, primarily due to working capital buildup, raising concerns about cash flow management.
Ladies and gentlemen, good day, and welcome to the Jindal Steel Limited Q1 FY26 earnings conference call hosted by Nomura. (Operator Instructions) Please note that this conference is being recorded. I will now hand the conference over to Mr. Jashandeep Chadha from Nomura. Please go ahead.
Hi, thank you, Pascal, and good afternoon, everyone, and thanks for joining the first quarter call for Jindal Steel Limited. I'll quickly hand over to Mr. Vishal Chandak, the Head IR and Strategic Finance; and he'll take you forward. Over to you, Vishal.
Thank you very much, Jashandeep. Good afternoon, good day, ladies and gentlemen. I welcome you all to the Q1 FY26 earnings briefing of Jindal Steel. I have with me from the senior management team, Mr. Sabyasachi Bandyopadhyay, Whole-Time Director; Mr. Pankaj Malhan, Executive Director and Mr. Sunil Agrawal, Head Finance.
Without much ado, I'll
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