JTL Industries

JTL Industries reported a total income of INR 5,496 million for Q1 FY26, with an EBITDA of INR 233 million, translating to a 4.3% margin. Profit after tax (PAT) stood at INR 165.5 million, achieving a 3% PAT margin. The company's sales volume reached 1,08,406 metric tons, with value-added products contributing 20% to the sales mix. Export volume was 6,404 metric tons, representing 6% of total sales.

The company initiated plans for a new ASTM/API-grade pipe market, positioning itself as one of the few manufacturers capable of producing larger diameter, higher thickness API-grade ERW pipes. This move targets high-grade segments like oil and gas, water transmission, and city gas distribution, with expected EBITDA margins of INR 7,000-8,000 per metric ton. Additionally, JTL Industries entered the higher-value niche segment of ultra-thin 0.04 mm brass foil production through a strategic job-work arrangement, catering to sectors like defense, aerospace, and electronics.

EBITDA per ton experienced underperformance in Q1 FY26, primarily due to significant HR coil price fluctuations (jump in April/May, correction in June) leading to an estimated INR 1,000 per ton inventory loss. Initial penetration efforts for new DFT products also involved pricing dips and higher freight costs to establish market presence across various regions. The blended realization was further impacted by a higher proportion of black pipe sales compared to value-added products in the quarter.

JTL Industries aims for a full-year sales volume of 5 lakh tons for FY26 and projects a 30% growth over this volume for FY27. For Q2 FY26, the company targets a sales volume of 1,20,000 tons. Specifically for DFT products, the target is to double Q1's 7,500 tons to 15,000 tons in Q2 FY26. The strategy involves penetrating higher-margin segments and EPC contractors, leveraging its 1,000-plus dealer network and 1,500-plus SKUs.

The company incurred a capex of approximately INR 50 crores in Q1 FY26. The full-year capex guidance for FY26 is set between INR 240-250 crores, maintaining a similar quarterly run rate. This capital is being deployed for capacity expansion, including the new ASTM/API-grade pipe market, DFT technology, new GI coil lines, and a 30 kilo ton per annum API-grade ERW plant. Interest costs increased due to the clubbing of a subsidiary, JTL Engineering, with finance costs running at INR 2.7-2.8 crores quarterly.

While JTL Industries obtained new CE certification for its DFT products, enabling entry into the European market, plans for US and Canadian markets were impacted by Trump tariffs. The company's export target remains at or under 10% of total sales for FY26. Management expects more clarity on export positioning in the next six months and is actively working to expand into European, African, and Australian segments.