Jindal Steel Maintains FY'26 Sales Target, Plans INR 4,925 Crores Capex Amid Market Challenges

Jindal Steel , a leading player in India's steel sector, has reaffirmed its sales volume target of approximately 2.5 million tonnes per quarter for FY'26, demonstrating confidence in its growth trajectory despite current market challenges. The company has also outlined ambitious expansion plans, including a significant capital expenditure allocation of INR 4,925.00 crores for the second half of FY'26.

Expansion and Production Targets

Jindal Steel aims to achieve a steel production capacity of 15.6 million tonnes by FY'26, underlining its commitment to long-term growth. This expansion aligns with India's position as a key driver of global steel demand, with the World Steel Association projecting that India will account for over 60% of incremental global steel demand in CY26.

Financial Performance

The company's Q2FY26 financial results reflect the impact of seasonal weakness in the steel market:

Metric	Q2FY26	Q1FY26	YoY Change	QoQ Change
Gross Revenue	13,505.00	14,336.00	3.70%	-5.80%
Adjusted EBITDA	1,875.00	2,984.00	-11.70%	-37.20%
Profit After Tax	635.00	1,496.00	-26.20%	-57.60%
Steel Production	2.00	2.09	1.50%	-4.30%
Steel Sales	1.87	1.90	1.10%	-1.60%

The company's performance was influenced by planned shutdowns and seasonal market dynamics, leading to a decrease in production and sales volumes compared to the previous quarter.

Market Dynamics and Pricing

Management expects coal costs to increase by $3-5 per tonne in Q3 FY'26, while iron ore costs are projected to remain steady. Domestic steel prices are currently 2-3% lower than Q2 levels, reflecting broader market trends. The company has observed a correction in steel prices during Q2FY26, with Hot Rolled Coil (HRC) prices staying weak due to softening Chinese steel prices.

Value-Added Products and Export Performance

Jindal Steel has maintained a strong focus on value-added products, with the share of value-added sales reaching a record 73% in Q2FY26. The company's export performance improved, with exports increasing to 10% of total sales volume in Q2FY26, up from 7% in Q1FY26.

Operational Highlights

The company has made significant progress in its expansion projects:

Commissioned a 4.6 MTPA Blast Furnace-2 and a 3 MTPA Basic Oxygen Furnace-2 at Angul
Achieved first-ever Continuous Galvanizing Line (CGL) dispatch
Initiated first-ever Cold Rolled (CR) products exports

Future Outlook

While maintaining its sales target, Jindal Steel remains cautious about near-term market challenges. The company's volume projections for FY'26-27 will be disclosed during the Q4 earnings call, providing stakeholders with a clearer picture of its long-term strategy.

As Jindal Steel navigates through market fluctuations, its focus on capacity expansion, value-added products, and strategic capital allocation positions it to capitalize on India's growing steel demand. However, the company will need to carefully manage costs and market dynamics to achieve its ambitious targets in the evolving steel industry landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.34%	+0.67%	+2.35%	+19.57%	+18.86%	+420.69%

Jindal Steel , one of India's leading steel manufacturers, has announced its financial results for the second quarter of fiscal year 2026 (Q2 FY26) and made a key leadership appointment.

Financial Performance

The company's consolidated financial results for Q2 FY26 show:

Metric	Amount (₹ in crores)
Gross Revenue	13,505.00
Adjusted EBITDA	1,875.00
Profit After Tax (PAT)	635.00

For the half-year ended September 30, 2025:

Metric	Amount (₹ in crores)
Gross Revenue	27,841.00
Profit After Tax (PAT)	2,131.00

Operational Highlights

Q2 FY26

Steel Production: 2.00 million tonnes (MT)
Steel Sales: 1.87 MT

Half-year

Steel Production: 4.09 MT
Steel Sales: 3.78 MT

Expansion and Capex

Jindal Steel has made significant progress in its expansion plans:

Commissioned India's second-largest blast furnace at Angul, with a capacity of 4.6 MTPA.
Installed a new 3 MTPA Basic Oxygen Furnace (BOF) at Angul.
These additions have increased the company's total steelmaking capacity from 9.6 MTPA to 12.6 MTPA.

Financial Position

Consolidated Net Debt: Decreased to ₹14,156.00 crores as of September 30, 2025, from ₹14,400.00 crores previously.

Management Changes

The company has appointed Mr. Gautam Malhotra as the new Chief Executive Officer and Key Managerial Personnel, effective October 28, 2025. Mr. Malhotra brings over 19 years of experience and has been associated with the company since May 2024.

Note: This article is based on the latest available financial data and corporate announcements. Investors are advised to conduct their own research and consult financial advisors before making investment decisions.