JTL Industries Limited

JTL Industries reported a robust Q3 FY26, with consolidated turnover increasing by 9.6% QoQ to Rs.470.51 crores. This growth was supported by a 10.08% QoQ rise in consolidated sales volume to 90,429 metric tons. Operational efficiency improved, leading to a 15.3% QoQ increase in consolidated EBITDA to Rs.42.26 crores and an 8% QoQ growth in PBT to Rs.33.05 crores. Standalone performance mirrored this trend, with turnover up 14% QoQ to Rs.422.9 crores and EBITDA up 18.6% QoQ to Rs.38.80 crores.

The company expressed strong confidence in achieving its FY26 sales volume target of 4 lakh tons, having already reached 40,000 tons in Q4 FY26. Looking ahead, JTL has set ambitious targets of 6.5 lakh tons for FY27 and 9 lakh tons for FY28. These targets are expected to be driven by increased contributions from the Mangaon facility (projected to add 25,000-30,000 tons per quarter), the launch of new wider width products by April, and a planned doubling of export sales to 60,000-65,000 tons in FY27.

Management clarified that past volatility in EBITDA per ton was influenced by inventory gains in FY23 and initial negative impacts from the new DFT product launch. With DFT now profitable, the company maintains its FY26 overall EBITDA per ton guidance of Rs.4,000 and projects Rs.4,500-5,000 for FY27. The DFT segment specifically is targeted to achieve Rs.7,500 per ton once fully impaneled. The product mix for FY27 is expected to comprise 35-40% value-added products, with bullet shells contributing 15-20% and EV components 20-30% of total sales.

The newly acquired RCI Industries, operating in the copper segment, is set to significantly contribute to the group's performance. For Q4 FY26, RCI is targeted to achieve 500 MT of sales, translating to a top line of Rs.50-60 crores. By H2 FY27, the company aims for RCI to reach 500 tons of sales per month and achieve 10% EBITDA margins. RCI's focus on super value-added products for defense and EV automotive sectors underscores its strategic importance.

JTL Industries has outlined a total CAPEX spend of Rs.250 crores for FY26, with Rs.130-140 crores already utilized in the first nine months. An additional Rs.100 crores is planned for FY27, alongside Rs.75 crores for API CAPEX and Rs.150-170 crores pending for the wider segment. The company emphasizes funding these expansions primarily through internal accruals, with promoters prepared to inject capital if necessary, to maintain a debt-free balance sheet, excluding working capital debt.

Management acknowledged the increasing competitive intensity and capacity expansions by peers, such as APL targeting 80 lakh tons. However, JTL asserts its strong market position through a diversified offering of primary-plus-secondary products, unique galvanizing capabilities in Maharashtra, and a focus on higher-margin, value-added products like DFT, API, and color-coated pipes. The strategy is to cater to specific market segments rather than engaging in lower-end commodity competition.

While recognizing a slowdown in government CAPEX due to the election cycle, particularly in states like Uttar Pradesh, JTL maintains a decent order book from Himachal Pradesh, J&K, and Uttarakhand. Management anticipates an improvement in order flow post-elections. The company confirmed that no major amounts are held back from the government, with typical payment terms ranging from 2.5 to 3 months, and minor delays for small parts are considered normal business course.