Jindal Steel vs Shyam Metalics Q4 FY26

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.

Shyam Metalics delivered a record Q4 FY26 with revenue of ₹5,240 Cr (+27% YoY) and EBITDA of ₹756 Cr (+33% YoY), driven by 26% volume growth to 4.94 MT and a favorable product mix shift toward value-added segments like CR coils and stainless steel. EBITDA margin expanded 60 bps YoY to 14.4%, aided by cost discipline and improved realizations. The board approved a new ₹2,700 Cr capex for a specialty wire mill and stainless steel downstream expansion, targeting commissioning by March 2029. Management guided for ~30% EBITDA growth in FY27, supported by ramp-up of CRM Phase 2, aluminium foil, and sponge iron capacity. Key risk: global steel price volatility and geopolitical disruptions could pressure realizations.

Guidance read

~30% EBITDA growth in FY27: Management expects EBITDA to grow ~30% YoY in FY27, driven by volume growth from new capacities and cost efficiencies. CRM EBITDA per ton of ₹10,000-11,000 in FY27: The CRM complex is expected to contribute EBITDA of ₹10,000-11,000 per ton in FY27. Aluminium EBITDA per ton of ₹35,000-40,000 in FY27: Aluminium segment EBITDA per ton is expected to be in the range of ₹35,000-40,000 in FY27. Capex of ₹2,900 Cr in FY27: The company plans to incur ₹2,900 Cr of capex in FY27 as part of the ₹10,000 Cr total capex program.

Risk read

Key risks include Global steel price volatility — Geopolitical tensions and trade actions could lead to price pressure and volatility in steel markets, impacting realizations.; Nickel sourcing challenges — Nickel prices have risen ~20% due to Indonesia supply cuts, posing cost risks for stainless steel production, though 75% of portfolio is low-nickel.; ED case on coal allocation — An ongoing ED investigation related to coal allocation could lead to legal or reputational risks, though management downplays it.; Pollution control board non-compliance — Central Pollution Control Board identified non-compliance issues; management expects resolution within 3 months..

Promise ledger

Scorecard data is being built as historical quarters are processed.