Jindal Stainless vs Jindal Steel Q4 FY26

JI

Jindal Stainless

Q4 FY26 · Diversified

Jindal Stainless delivered a resilient Q4 FY26 with consolidated EBITDA of ₹1,455 crore (+37% YoY) and PAT of ₹824 crore (+41% YoY), despite geopolitical headwinds impacting fuel costs. Full-year sales volume grew 8% YoY to 2.57 million tons, driven by strong domestic demand from automotive, metro, and white goods. Management guided FY27 volume growth of 7-9% and H1 EBITDA per ton of ₹18,000-20,000, factoring in elevated energy costs from the Middle East crisis. The Indonesian melt shop (1.2 MTPA) was commissioned ahead of schedule, and downstream expansions in India remain on track to support a 3.5 MTPA sales target by FY29. Key risk: QCO suspension and cheap imports could pressure pricing and market share.

Guidance read

FY27 volume growth of 7-9%: Management expects sales volume to grow 7-9% in FY27, driven by domestic demand and new capacities. H1 FY27 EBITDA per ton of ₹18,000-20,000: Blended EBITDA per ton guided at ₹18,000-20,000 for H1 FY27, factoring in higher energy costs. FY29 sales volume target of 3.5 MTPA: Company targets 3.5 million tons sales volume by FY29, implying double-digit CAGR over three years. FY27 capex of ₹2,600-2,800 crore: Capital expenditure for FY27 expected to be ₹2,600-2,800 crore, primarily for downstream expansions.

Risk read

Key risks include QCO suspension and cheap imports — Temporary suspension of Quality Control Order allows substandard imports, pressuring domestic pricing and MSMEs.; Energy cost spike from Middle East crisis — Fuel costs (LPG, natural gas) have risen 2.5-3x, impacting margins; pass-through is limited due to import competition.; Indonesian policy risk — Potential changes in Indonesian nickel export duties or restrictions could affect cost advantage of the new melt shop.; Export market uncertainty — Global trade tensions and geopolitical issues continue to subdue export demand, limiting volume growth outside India..

Promise ledger

Scorecard data is being built as historical quarters are processed.

JI

Jindal Steel

Q4 FY26 · Manufacturing

Jindal Steel reported a strong Q4 FY26 with consolidated gross revenue of ₹19,399 crore, up 28% QoQ, driven by volume ramp-up at the expanded Angul facility and a recovery in steel prices. Adjusted EBITDA stood at ₹2,647 crore with per-ton EBITDA of ₹10,093, though PAT was impacted by a ₹1,433 crore impairment on Australian assets. The company achieved record production of 2.65 million tons and sales of 2.62 million tons, up 26% and 23% YoY respectively. Management guided FY27 production of 11-11.5 million tons and sales of 10.5-11 million tons, with coking coal costs expected to rise $20-25/ton in Q1. The slurry pipeline commissioning in Q1 FY27 is expected to deliver ₹750-1,000 per ton savings. Key risk: volatility in coking coal prices and steel price realizations could pressure margins.

Guidance read

FY27 production guidance: 11-11.5 million tons: Management expects continued ramp-up of Angul capacities to drive volume growth in FY27. FY27 sales guidance: 10.5-11 million tons: Sales volume target reflects improved capacity utilization and demand environment. Q1 FY27 coking coal cost increase of $20-25/ton sequentially: Management expects higher input costs in the near term due to volatile coking coal prices. Slurry pipeline commissioning in Q1 FY27 with ₹750-1,000/ton savings: The pipeline is expected to reduce raw material costs significantly once fully operational.

Risk read

Key risks include Coking coal price volatility — Management highlighted a $20-25/ton sequential increase in coking coal costs for Q1 FY27, which could pressure margins if steel prices do not keep pace.; Steel price realization risk — Analyst raised concerns about recent dip in steel prices; management acknowledged but said market is holding firm. However, any sustained decline could impact revenue.; Value-added product mix decline — Value-added share fell to 61% from 66% QoQ due to ramp-up focus; recovery timeline may slip if capacity utilization targets take precedence.; Australian asset impairment and closure — The company recognized a ₹1,433 crore impairment on Australian assets after closing the shaft; further cash outflows are minimal but the loss of reserves is permanent..

Promise ledger

Scorecard data is being built as historical quarters are processed.