JTL Industries Reports 37% Q-o-Q PAT Growth Despite Revenue Decline in Q2 FY26
JTL Industries, a steel pipes and tubes sector leader, reported robust Q2 FY26 results despite flooding in Punjab. Revenue decreased 20.77% QoQ to ₹431.00 crores, but PAT increased 37.50% to ₹22.00 crores. EBITDA rose 27.59% to ₹37.00 crores, with EBITDA per ton improving significantly to ₹4,300.00. The company maintained its FY26 volume guidance of 4.5-5 lakh tons and targets 6.5 lakh tons for FY27. Value-added products, particularly DFT, turned EBITDA positive. Expansion plans at the Maharashtra plant are progressing, with capacity expected to reach 1.4 million tons.
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JTL Industries Limited , a leading player in the steel pipes and tubes sector, has reported a robust financial performance for the second quarter of fiscal year 2026, despite facing challenges due to severe flooding in Punjab.
Key Financial Highlights
| Metric | Q2 FY26 | Q1 FY26 | Q-o-Q Change |
|---|---|---|---|
| Revenue | ₹431.00 | ₹544.00 | -20.77% |
| EBITDA | ₹37.00 | ₹29.00 | +27.59% |
| PAT | ₹22.00 | ₹16.00 | +37.50% |
| EBITDA per ton | ₹4,300.00 | ₹2,300.00 | +86.96% |
Performance Analysis
Despite a 20.77% quarter-on-quarter decline in revenue, JTL Industries has shown remarkable resilience in its profitability. The company's Profit After Tax (PAT) grew by 37.50% to ₹22.00 crores in Q2 FY26, up from ₹16.00 crores in Q1 FY26. This growth was achieved against the backdrop of revenue dropping to ₹431.00 crores from ₹544.00 crores in the previous quarter.
The company's EBITDA also saw a significant improvement, rising to ₹37.00 crores in Q2 from ₹29.00 crores in Q1, marking a 27.59% increase. Notably, the EBITDA per ton improved substantially to ₹4,300.00 in Q2 from ₹2,300.00 in Q1, showcasing the company's ability to enhance operational efficiency and profitability.
Operational Challenges and Recovery
The decline in revenue was primarily attributed to severe flooding in Punjab, which impacted approximately 23,000 tons of dispatches. However, the company has shown quick recovery and adaptability in the face of these challenges.
Future Outlook
Despite the setbacks in Q2, JTL Industries maintains its annual volume guidance of 4.5-5 lakh tons for FY26. The company is targeting a sales volume of 6.5 lakh tons for FY27, indicating confidence in its growth trajectory.
Value-Added Products and Expansion
JTL Industries has reported positive developments in its value-added product segment, particularly in Direct Forming Technology (DFT) products. These products have turned EBITDA positive in Q2, contributing to the overall improvement in profitability.
The company is also progressing with its expansion plans, particularly at its Maharashtra plant. The capacity at this single location is expected to reach 1.4 million tons, up from the current 4 lakh tons.
Management Commentary
Pranav Singla, Whole-Time Director of JTL Industries, commented on the performance, stating, "We expect to cover up the volume loss in Q3 itself, targeting close to 120,000 tons of sales volume. For Q4, we anticipate reaching 140,000 to 150,000 tons of sales volume."
Conclusion
JTL Industries' Q2 FY26 results demonstrate the company's resilience and ability to maintain profitability even in challenging circumstances. The significant improvement in EBITDA per ton and the positive turn in value-added products suggest a strong foundation for future growth. As the company continues to expand its capacity and product offerings, investors and market watchers will be keen to see how these strategies translate into sustained financial performance in the coming quarters.
Historical Stock Returns for JTL Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.28% | +7.49% | -6.74% | -7.99% | -31.05% | +14.23% |
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