JTL Industries Limited — Q3 FY26 earnings call

Call held 24 Jan 2026

Management summary

JTL Industries reported a strong Q3 FY26 with consolidated turnover growing 9.6% QoQ to Rs.470.51 crores and EBITDA increasing 15.3% QoQ to Rs.42.26 crores, driven by higher sales volumes. The company is confident in achieving its FY26 sales volume target of 4 lakh tons and has provided ambitious targets of 6.5 lakh tons for FY27 and 9 lakh tons for FY28, supported by capacity expansion and new product launches including DFT, API, and color-coated pipes. The newly acquired RCI Industries is also expected to contribute significantly, targeting Rs.50-60 crores in Q4 FY26 and 10% EBITDA margins by H2 FY27.

Highlights

  • Consolidated turnover increased by 9.6% QoQ to Rs.470.51 crores, driven by higher sales volumes.

  • Consolidated sales volume rose by 10.08% QoQ to 90,429 metric tons, indicating strong demand.

  • Consolidated EBITDA grew by 15.3% QoQ to Rs.42.26 crores, reflecting improved operational efficiency.

  • Management expressed high confidence in achieving the FY26 sales volume target of 4 lakh tons, with ambitious targets of 6.5 lakh tons for FY27 and 9 lakh tons for FY28.

  • The newly acquired RCI Industries is projected to contribute Rs.50-60 crores in top line for Q4 FY26 and achieve 10% EBITDA margins by H2 FY27, focusing on high-value products for defense and EV sectors.

Concerns

  • Consolidated 9M FY26 revenue was marginally lower YoY at Rs.1,444 crores compared to Rs.1,446 crores in 9M FY25, showing a slight shortfall.

  • Standalone 9M FY26 revenue was down 10% YoY at Rs.1,298 crores versus Rs.1,446 crores in 9M FY25.

  • Export sales for 9M FY26 saw a shortfall of approximately 5% YoY, totaling 25,515 MT compared to 26,858 MT in 9M FY25.

Key financials

  1. Consolidated Revenue ₹470.51 Cr +9.6%QoQ
  2. Consolidated Sales Volume 90,429 metric tons +10.1%QoQ
  3. Consolidated EBITDA ₹42.26 Cr +15.3%QoQ
  4. Consolidated PBT ₹33.05 Cr +8%QoQ
  5. Standalone EBITDA ₹38.8 Cr +4.3%YoY
  6. Standalone PAT ₹26 Cr +4.1%YoY

What they filed

Q1 FY27: revenue up 6.3%, net profit up 81.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue480 452 466 504 371 −23%423 −6%500 +7%536 +6%
EBITDA30 35 17 21 29 −3%35 +0%39 +129%43 +105%
Net profit26 25 17 16 20 −23%26 +4%26 +53%29 +81%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

medium confidence

Pipeline

other

PSTCL order for current fiscal year

Management noted a decent order book flowing throughout the year from Himachal Pradesh, J&K, and Uttarakhand, and expects good order flow post-elections. The current run rate is 40,000 tons, driven by dealer restocking.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹250 Cr Primarily internal accruals, with promoters willing to inject capital if there is a shortfall, aiming for a debt-free situation (excluding working capital debt).
    • Wider segment capacity expansion ₹150 Cr
    • API segment capacity expansion ₹75 Cr
    For the FY26, the total CAPEX spend is close to Rs.250 crores. Out of that, Rs.130-140 crores have already been spent, and the remaining will be in this quarter itself, and going ahead, next year, Rs.100 crores of CAPEX will be spent as we already planned, and plus the CAPEX of API as well.
  • Debt Debt disclosed
    Well, our finance cost has gone up because as Mr. Pranav has just said, we are galvanizing ourselves to meet the challenges of the future. So, our CC limits were utilized at a larger capacity. So, that is why the finance cost has gone up. In any case, CAPEX is also going on. And we also had to purchase this company, RCI. So, some part of the expenditure relates to that also.
  • M&A RCI Industries Acquisition · Integrated

    To expand into the copper segment and contribute to overall group sales.

    Contributes to increased finance cost due to acquisition-related expenditure and is targeted to achieve Rs.50-60 crores top line in Q4 FY26 and 10% EBITDA margins by H2 FY27.

    And we also had to purchase this company, RCI. So, some part of the expenditure relates to that also.

Guidance & targets

Volume

  • FY26 Sales Volume Volume · FY26 · High confidence 4 lakh tons
    So, given the run rate of this quarter, we are very sure that we will cross 2.5 lakh tons of sales and the before mentioned target of 4 lakh tons will be achieved in this financial year itself.

    — Pranav Singla

  • FY27 Sales Volume Volume · FY27 · High confidence 6.5 lakh tons
    the next year target of 6.5 lakh tons will be achieved

    — Pranav Singla

  • FY28 Sales Volume Volume · FY28 · High confidence 9 lakh tons
    and the target after that of around 9 lakh tons sales, that will be achieved as well.

    — Pranav Singla

  • RCI Industries Sales Volume · current quarter (Q4 FY26) · High confidence 500 MT
    So, Pallav, the target for this quarter is that we will do close to 500 MT of sales in RCI

    — Pranav Singla

  • RCI Industries Sales Volume · H2 next financial year (H2 FY27) · High confidence 500 tons per month
    our target is that we will reach 500 MT of sales per month. And that should be happening starting H2 of next financial year.

    — Pranav Singla

  • FY27 Export Sales Volume · FY27 · High confidence 60,000-65,000 tons
    Exports, we will be targeting around 60,000 to 65,000 tons of sales for next year

    — Pranav Singla

  • FY27 Export Sales as % of Total Volume Volume · FY27 · High confidence 10%
    which is again a 10% of total volume of the sales.

    — Pranav Singla

Margin

  • FY26 Overall EBITDA per ton Margin · FY26 · High confidence Rs.4,000
    so we still stick that we have EBITDA per ton of Rs.4,000 as a whole for this year for the company.

    — Pranav Singla

  • FY27 Overall EBITDA per ton Margin · FY27 · High confidence Rs.4,500-5,000
    Going ahead next year, as we are launching new products such as color-coated, GST pipes, and the full operation of DFT as well, we will aim to get EBITDA per ton of Rs.4,500-5,000 EBITDA per ton for the full year.

    — Pranav Singla

  • PSTCL Order EBITDA per ton Margin · current fiscal year · High confidence Rs.6,500-7,000
    On the EBITDA per ton front, as it is a galvanized type, it should be plus of Rs.6,500-7,000 EBITDA per ton on the segment.

    — Pranav Singla

  • RCI Industries EBITDA Margins Margin · H2 next financial year (H2 FY27) · High confidence 10%
    we are very confident that we will achieve 10% EBITDA margins starting H2 of next financial year.

    — Pranav Singla

  • DFT Segment EBITDA per ton Margin · this quarter (Q4 FY26) · High confidence Rs.5,500-6,500
    Before that, till that time, we will be ramping the capacity. The bonus part is that we already have the capacity installed. It is just that some bottlenecking has to be done and some upgrades have to be done. So, we are very confident that from 500 tons a quarter, which we will be doing this quarter, we shall be achieving 500 tons a month by H2 of next financial year.

    — Pranav Singla

  • Fully Impaneled DFT EBITDA per ton Margin · when fully impaneled · High confidence Rs.7,500
    Going ahead, when we are impaneled everywhere, we are expecting that we will achieve a EBITDA per ton of Rs.6,500 in DFT segment itself. And if you talk about the guidance of EBITDA per ton, so we still stick that we have EBITDA per ton of Rs.4,000 as a whole for this year for the company.

    — Pranav Singla

Revenue

  • RCI Industries Top Line Revenue · current quarter (Q4 FY26) · High confidence Rs.50-60 crores
    and that will equate to around Rs.50 to 60 crores of top line in that segment.

    — Pranav Singla

Product Mix

  • FY27 Value-Added Product Mix Product Mix · FY27 · High confidence 35-40%
    So, it will be around 35-40% value added and the remaining will be generally.

    — Pranav Singla

  • Bullet Shell Contribution Product Mix · FY27 · High confidence 15-20%
    But, we can expect close to 15-20% of the total sales happening towards bullet shell.

    — Pranav Singla

  • EV Components Contribution Product Mix · FY27 · High confidence 20-30%
    Again, again, 25-30%. The majority sales right now is happening towards EV components going ahead, which will come down to 20-30%, the remaining will be also sold in different kind of segments.

    — Pranav Singla

Capacity

  • Wider Segment Production Start Capacity · Q1 FY27 · High confidence Q1 FY27
    So, the wider segment will be starting production in Q1 itself.

    — Pranav Singla

  • API Grade Mill Completion Capacity · FY27 · High confidence within next financial year
    And for the API, we are too early in the picture right now to comment on that. But within the next financial year, everything should be completed for that as well.

    — Pranav Singla

What to watch in Q4 FY26

Q4 FY26 Sales Volume Achievement

next quarter
Current 40,000 tons achieved so far in Q4 FY26
Target 1.25 lakh tons for Q4 FY26

Why it matters

To verify if the company can achieve its ambitious Q4 volume target after holding back orders in Q3.

So, Sneha, so if we are targeting 1.25 lakh tons of sales this quarter, this is just purely game play of all the capacities we already have, including DFT at Maharashtra and in Mangaon as well.

Risks & concerns

  • Government CAPEX slowdown due to elections

    medium

    Government CAPEX was slow due to the election scenario, but order picking up is expected post-elections.

    Management acknowledged

  • Raw material price volatility (Copper)

    medium

    Copper prices are increasing every year, which could impact RCI's profitability, though hedging will start from February.

    Management acknowledged

  • Competitive intensity and capacity expansion by peers

    medium

    Peers like APL are aggressively expanding capacity, potentially leading to margin pressure, but JTL focuses on value-added products.

    Analyst acknowledged

Q&A highlights

8 direct
Q3 Volume Shortfall & Q4/FY27 Targets Direct
So, basically we were expecting a price hike happening in this quarter. There were a lot of orders held back in the quarter because we had to focus more on our margins and we had an option of getting price variation. So, because of those operations, the target was to focus more on the bottom line than the volume front for this quarter itself. So, that kind of increase will be witnessed in the margin front as well in Q4, because the material held back will be sold at a better price.

Management explained the Q3 volume miss as a strategic decision to prioritize margins by holding back orders, with an expectation of better pricing in Q4, and reiterated strong confidence in achieving future volume targets.

Asked by Lokesh from SMIFS Institutional Equities

EBITDA per ton trajectory and stability Direct
To answer you, firstly, we have been listed since 1995 on OTCEI and we came to BSE on 2011 and NSE in 2021. So, it is not that we were listed that year. And to answer your question about '23, the different uptick that you saw in '23 for EBITDA per ton, that was happening due to inventory gains. Everybody is aware that how the inventory or the HRC pricing rose in the COVID scenario and post that as well, during the war scenario as well. So, if you open sales balance sheet or any other bigger companies balance sheet as well, you will see abnormal EBITDA per ton in those years. But that is how the situation was that year. And post that, when you see that our Q3 last year, Q4 last year, or probably Q1 this year and Q2 this year, we mentioned that we started our DFT operations. DFT was a new SKU for us, which we thought that from day one would be highly profitable. But instead of being highly profitable, it was highly negative for us as well. But, given the current situation, we have already turned the tables, and it has become profitable for us. So, that is how you see the slowly increase in EBITDA per ton happening, and we shall be touching Rs.4,500-5,000 EBITDA per ton for next financial year.

Management clarified the historical volatility in EBITDA per ton, attributing past highs to inventory gains and recent lows to the initial negative impact of new DFT product launches, now showing a clear path to stabilization and improvement.

Asked by Saket Kapoor from Kapoor & Company

RCI Industries Contribution & Margins Direct
So, Pallav, the target for this quarter is that we will do close to 500 MT of sales in RCI, and that will equate to around Rs.50 to 60 crores of top line in that segment. And going ahead, our target is that we will reach 500 MT of sales per month. And that should be happening starting H2 of next financial year. So, before that, till that time, we will be ramping the capacity. The bonus part is that we already have the capacity installed. It is just that some bottlenecking has to be done and some upgrades have to be done. So, we are very confident that from 500 tons a quarter, which we will be doing this quarter, we shall be achieving 500 tons a month by H2 of next financial year.

Management provided specific near-term and medium-term sales and margin targets for the newly acquired RCI Industries, highlighting its strategic importance and value-added product focus.

Asked by Pallav from Antique Stock Broking

FY27 Volume Growth Drivers Direct
So, Sneha, so if we are targeting 1.25 lakh tons of sales this quarter, this is just purely game play of all the capacities we already have, including DFT at Maharashtra and in Mangaon as well. Going ahead, when I am saying that I will be doing 6.5 lakh tons of sales, in that, the majority proportion of sales will be coming from Mangaon itself. And how is coming from that because I am launching collaborative products over there, including GP pipes as well. So, all that contribution should be plus of 25,-30,000 tons a quarter.

Management detailed the key drivers for the ambitious FY27 volume growth, emphasizing contributions from existing capacities, the Mangaon facility, new product lines, and export expansion.

Asked by Sneha from Nuvama Wealth

CAPEX Plans & Funding Direct
For the FY26, the total CAPEX spend is close to Rs.250 crores. Out of that, Rs.130-140 crores have already been spent, and the remaining will be in this quarter itself, and going ahead, next year, Rs.100 crores of CAPEX will be spent as we already planned, and plus the CAPEX of API as well.

Management provided a clear breakdown of current and future CAPEX plans, along with the funding strategy, reassuring investors about financial discipline and growth investments.

Asked by Lokesh from SMIFS Institutional Equities

DFT Margin Improvement Timeline Direct
Starting Q1 or Q2 of H2, we should be targeting that. Before that, in this quarter, we should be having EBITDA per ton of Rs.5,500 to Rs.6,500 in DFT segment.

Management provided a specific timeline and interim target for achieving higher EBITDA per ton from the DFT segment, indicating a clear path to margin expansion from this key product.

Asked by Diplesh from Credent Asset Management

Competitive Intensity & Margin Pressure Direct
Lokesh, so basically market is at such a point right now that there are multiple offerings of products happening in the market. For example, there are companies offering primary, there are companies offering primary plus secondary, there are companies offering just secondary. So, where I position myself in the geography is that I am offering primary plus secondary both in the market. So, in that space, I feel that I am doing well and decent right now as well.

Management articulated its strategy to navigate competitive pressures by focusing on a diversified product mix (primary+secondary) and value-added offerings, rather than engaging in lower-end commodity segments.

Asked by Lokesh from SMIFS Institutional Equities

Promoter Share Rearrangement Direct
I am Pranav myself and my grandfather passed away last quarter and it was just a gift of shares from his side to me. There was no realignment or nothing happening, it is just normal course, nothing more than that, normal inheritance which I have got.

Management clarified a query regarding promoter shareholding changes, assuring investors that it was a personal inheritance and not a strategic realignment.

Asked by Saket Kapoor from Kapoor & Company

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Highlights

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.

Ambitious Sales Volume Growth Targets

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.

EBITDA Per Ton Improvement and Product Mix Strategy

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.

RCI Industries Acquisition and Future Contribution

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.

CAPEX Plans and Funding Discipline

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.

Market Dynamics and Competitive Positioning

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.

Government Orders and Payment Realities

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.

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