Jindal Steel has expressed strong confidence in achieving its ambitious sales target for FY26, reaffirming its commitment to long-term operational guidance. The steel manufacturer expects to meet its sales goal of 8.5 to 9 million tonnes, demonstrating the company's robust production capabilities and market positioning.

Performance Outlook and Financial Targets

The company anticipates a significant improvement in its fourth quarter performance compared to Q3, with expectations of much higher EBITDA during the period. This projected enhancement reflects the company's operational efficiency improvements and strategic market positioning.

Strategic Financial Management

Jindal Steel has outlined its strategic approach to debt management, aiming to reduce its net debt to EBITDA ratio below 1.5x. This target will be achieved through a combination of increased production capacity and rising revenues, reflecting the company's focus on maintaining a healthy balance sheet while pursuing growth objectives.

Long-term Commitment

The company has confirmed its commitment to long-term guidance, indicating confidence in its operational strategy and market outlook. This commitment underscores Jindal Steel's strategic planning approach and its ability to deliver on projected targets despite market challenges.

Jindal Steel has outlined key cost and pricing trends that are expected to shape the steel industry landscape in the coming quarter. The company's management has provided guidance on both input cost pressures and favorable pricing dynamics in the domestic market.

Cost Pressures from Coking Coal

The company anticipates a sequential increase in coking coal costs for Q4 FY26, with projections indicating a rise of $18 to $20 per tonne. This represents additional input cost pressure for steel manufacturers, as coking coal is a critical raw material in the steel production process.

Domestic Steel Price Recovery

Despite rising input costs, the domestic steel market has shown strong price recovery. Current steel prices have increased significantly compared to December 2024 levels, providing some relief to steel manufacturers.

Market Outlook

Jindal Steel expects steel prices to remain strong in the near term, supported by robust demand conditions in the market. The company's positive outlook on pricing sustainability suggests confidence in the underlying demand fundamentals for steel products.

The combination of rising input costs and strong steel prices reflects the current market dynamics, where demand strength is enabling steel companies to maintain pricing power despite cost pressures from raw materials.