Jindal Steel has announced that Jindal Cement Industries Private Limited has acquired additional shares in the company, resulting in a change in its ownership structure. The acquisition has increased Jindal Cement Industries' stake in Jindal Steel.

Acquisition Details

Jindal Cement Industries Private Limited has purchased 25,23,869 shares of Jindal Steel, representing approximately 0.24% of the total share capital. This acquisition was made through open market transactions.

Impact on Shareholding

Following the latest acquisition, the equity share capital of Jindal Steel remains unchanged at Rs. 1,02,00,88,097, comprising 1,02,00,88,097 equity shares of Re. 1 each. The acquisition by Jindal Cement Industries further increases the promoter and promoter group holdings in the company.

Disclosure and Compliance

In compliance with regulatory requirements, Jindal Cement Industries Private Limited has made the necessary disclosure under SEBI takeover regulations. This disclosure ensures transparency in the company's ownership changes and complies with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Promoter Group Composition

Jindal Cement Industries Private Limited is part of the promoter group of Jindal Steel. The promoter and promoter group of Jindal Steel includes various individuals, trusts, and corporate entities. Some of the significant shareholders in this group include:

Market Implications

While the acquisition by Jindal Cement Industries represents a relatively small percentage of the total share capital, it increases their stake in the promoter group. Investors and market watchers may want to monitor any further developments or changes in the company's ownership structure.

Jindal Steel Limited , one of India's leading steel manufacturers, recently announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance amidst challenging market conditions and significant capacity expansions.

Key Financial Highlights

• Consolidated gross revenue declined 6% quarter-on-quarter to INR 13,505.00 crores
• Consolidated adjusted EBITDA stood at INR 1,875.00 crores
• EBITDA per tonne was INR 10,010.00
• Net profit for the quarter was INR 635.00 crores
• Net debt decreased by INR 244.00 crores to INR 14,156.00 crores

Production and Sales Performance

The company faced headwinds during the quarter, with production down 5% quarter-on-quarter to 2.00 million tonnes. Sales volume also decreased by 2% to 1.87 million tonnes. The performance was impacted by a prolonged monsoon season and planned shutdowns, including a month-long maintenance of the DRI plant at Angul.

New Leadership and Capacity Expansion

In a significant move, Jindal Steel appointed Gautam Malhotra as its new Chief Executive Officer. Malhotra brings two decades of experience across various domains, including operations, supply chain, sales, marketing, strategy, finance, and M&A.

The quarter marked a defining moment for Jindal Steel with the commissioning of two major plants at its Angul facility:

1. A 4.60 million tonne per annum blast furnace, more than doubling the hot metal capacity at Angul to 8.85 million tonnes per annum
2. A new 3.00 million tonne per annum Basic Oxygen Furnace, increasing crude steel making capacity from 6.00 million tonnes to 9.00 million tonnes per annum

These additions put the company on track to reach its stated goal of 12.00 million tonnes per annum at Angul within the current financial year.

Product Mix and Value Addition

Jindal Steel has been focusing on increasing its share of value-added products and flat steel production:

• Value-added products reached 73% of total sales, the highest ever
• Flat product mix improved from 44% to 49% quarter-on-quarter
• Long product mix decreased from 56% to 51%

This shift in product mix helped the company maintain relatively stable realizations despite industry-wide price pressures.

Raw Material Security

The company has been working on improving its raw material security:

• Captive iron ore production increased from 29% of total consumption in Q1 to 45% in Q2
• Utkal B1 coal mine is expected to start production in Q4 FY26

Outlook

While the steel industry faces challenges with subdued demand and pricing pressures, Jindal Steel expects improvement in the coming months:

• Steel prices are anticipated to stabilize post-festive season as construction demand returns
• The company maintains its volume guidance for the full financial year
• Management expects a 60% annualized volume offtake in H2 FY26 from the new blast furnace

Conclusion

Jindal Steel's Q2 FY26 results reflect a period of transition and investment in future growth. While facing short-term challenges, the company's focus on capacity expansion, value-added products, and raw material security positions it for potential growth as market conditions improve. Investors and industry observers will be watching closely to see how the new leadership and expanded capacity translate into performance in the coming quarters.