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.

Jindal Steel & Power Limited (JSPL) has reported a significant change in its promoter shareholding. Savitri Devi Jindal, a member of the promoter group, has transferred a substantial portion of her stake in the company through an off-market gift transaction.

Transaction Details

The transfer, which took place on October 7, 2022, involved 1,12,68,000 equity shares of JSPL. This move has resulted in a notable reduction in Savitri Devi Jindal's shareholding in the company.

Regulatory Compliance

The company has made this disclosure in compliance with the Securities and Exchange Board of India (SEBI) regulations concerning substantial acquisition of shares and takeovers. Such disclosures are crucial for maintaining transparency in the stock market and keeping investors informed about significant changes in company ownership.

Company Overview

Jindal Steel & Power Limited is a major player in the Indian steel industry. The company's equity structure consists of:

• Total equity share capital: Rs. 1,02,00,88,097
• Number of equity shares: 1,02,00,88,097
• Face value per share: Re. 1

Market Implications

While the transfer of shares was conducted as a gift and off-market transaction, it represents a substantial reduction in the promoter's direct holding. Such movements in promoter shareholding are often closely watched by market participants as they can sometimes signal changes in company control or strategy.

However, as this was a gift transaction within the promoter group, it may not necessarily indicate a change in the overall promoter holding or company direction. Investors and market analysts will likely monitor for any further disclosures or changes in the company's ownership structure in the coming days.

The company has not provided any additional commentary on the reasons behind this share transfer or its potential impact on the company's operations or governance.