Detailed Narrative
Capacity Expansion and Ramp-up Progress
Jindal Steel successfully expanded its total steelmaking capacity from 9.6 million tonnes per annum (MTPA) to 15.6 MTPA in FY26. This was driven by significant progress on the Angul expansion, including the commissioning of BF2 (4.6 MT) and 1,050 MW Shree Bhoomi Power Plant. The cold rolling complex of 1.2 MTPA is also operational, and the slurry pipeline from Barbil to Angul is expected to be commissioned in Q1FY27, further enhancing operational efficiency.
Financial Performance Highlights for FY26 and Q4FY26
For FY26, consolidated gross revenue increased 8% YoY to INR 62,412 crores, with PAT growing 18% YoY to INR 3,361 crores. Adjusted EBITDA stood at INR 9,099 crores, translating to INR 10,482 per tonne. Q4FY26 saw a strong sequential recovery, with gross revenue up 28% QoQ to INR 19,399 crores and PAT at INR 1,041 crores. The blended ASP increased significantly by INR 4,743 per tonne QoQ in Q4FY26.
Production and Sales Volume Growth
FY26 production volume reached 9.25 million tonnes, a 14% YoY increase, while sales volume grew 9% YoY to 8.68 million tonnes. Q4FY26 demonstrated robust growth, with production volume at 2.65 million tonnes (up 26% YoY and 6% QoQ) and sales volume at 2.62 million tonnes (up 23% YoY and 15% QoQ), reflecting strong ramp-up at Angul and improved capacity utilization.
Capital Allocation and Debt Management
The company invested INR 9,574 crores in capex during FY26, bringing the total investment in the current program to INR 35,498 crores since FY22. Consolidated net debt as of March 31, 2026, was INR 16,019 crores, with a net debt to EBITDA ratio of 1.66x and debt to equity of 0.43x. Management expects leverage metrics to normalize by Q2FY27. A final dividend of INR 2 per share was recommended.
Strategic Focus on Asset Sweating and Value-Added Products
With the major capex program largely complete, Jindal Steel's strategy is shifting towards 'asset sweating' to maximize returns from existing capacities. While currently focusing on capacity utilization during ramp-up, the company aims to recalibrate towards a higher value-added product mix, targeting a shift from the current 50:50 flat-to-long product mix towards 70% flat sales in the future. This optimization is expected to show movement in H1 FY27 and stabilize in H2 FY27.
Raw Material Security and Cost Outlook
Jindal Steel continues to strengthen its raw material security, having been declared the preferred bidder for the Thakurani-A1 iron ore block and awarded the Saradhapur Jalatap East coal block. While the Mozambique mine is EBITDA positive, the South Africa mine is operating but not yet EBITDA positive. Management anticipates coking coal prices to increase by $20-$25 per tonne sequentially in Q1FY27, indicating potential cost volatility.
Market Outlook and ESG Progress
India remains the world's fastest-growing major steel market, with domestic demand projected to expand by 7.4% in 2026 and 9.2% in 2027, underpinned by broad-based strength across key consuming sectors. India became a net exporter of steel with 0.1 million tonnes in FY26. The company also reported significant ESG progress, with S&P Global ESG score improving from 37/100 to 74/100 and CSA score from 30 to 72.