Jindal Steel FY26 profit up 20%, but costs weigh on margins

India’s fourth-largest steelmaker Jindal Steel Ltd reported record production and higher revenue for FY26, helped by stronger volumes and firm steel prices in the second half of the year. Net profit attributable to owners rose 20% to ₹3,367 crore, while revenue from operations grew 8% to ₹53,553 crore, as per its exchange filing released after market hours on Friday.

The year's adjusted earnings before interest, tax, depreciation, and amortization (Ebitda), however, fell 3% to ₹9,099 crore, as higher input costs weighed. Jindal Steel’s cost of materials consumed rose about 12% from a year ago to ₹23,089 crore in FY26. The adjusted Ebitda margin fell to 17.09% in FY26 from 18.76% in FY25, with the Ebitda figure adjusted for a one-off forex gain of ₹561 crore, the company said.

The steelmaker’s revenue from operations for FY26 jumped 7% to ₹53,225 crore from ₹49,765 crore in FY25, supported by higher steel production and sales volumes.

The steelmaker’s consolidated crude steel production rose to 14% to a record 9.25 million tonnes, while sales volume was up 9% to 8.68 million tonnes.

“Jindal Steel is at an inflection point, where we see the steel volumes have come up with ramp-up of expanded capacity and uptick in steel prices, both helped their Q4 and full year performances,” said Suman Kumar, metals and mining analyst at Philip Capital. "The costs, however, will come down starting FY27 since the cost saving initiatives has not started yet.”

Quarterly performance and outlook

In the March quarter, Jindal Steel reported a net profit of ₹1,044.75 crore against a loss reported a year ago, while revenue jumped 23% to ₹16,217.93 crore.

Production and sales for the quarter were at 2.65 million tonnes and 2.62 million tonnes, respectively. Domestic demand remained robust, accounting for 95% of total sales, while the share of value-added steel products rose to 61%, which typically supports better margins.

The New Delhi-headquartered steelmaker’s net debt rose to ₹16,019 crore as of 31 March 2026, compared to ₹15,443 crore at the end of December, mainly due to ongoing capital expenditure.

During FY26, Jindal Steel commissioned key facilities, including a 4.6 million tonnes per annum blast furnace and two basic oxygen furnaces at its Angul plant in Odisha. These expansions increased the company’s total steelmaking capacity to 15.6 million tonnes per annum. The company also secured the Thakurani-A1 iron ore block, strengthening raw material security.

The board recommended a final dividend of ₹2 per share for FY26, subject to shareholder approval.