Jindal Steel Q2: Consolidated net profit rises 21% to Rs 771 crore as sales volumes climb

Jindal Steel reported consolidated profit after tax attributable to shareholders of Rs 774 crore for the September quarter, up 21%, as higher sales volumes and improved realisations lifted revenue, while the company continued to pare its net debt. The steelmaker, formerly known as Jindal Steel & Power, posted gross revenue of Rs 19,448 crore in the second quarter of FY27, up 43% from Rs 13,544 crore a year earlier and 9% over the June quarter. Consolidated adjusted EBITDA stood at Rs 2,504 crore, while profit after tax was Rs 771 crore, according to the company's earnings release. Crude steel production remained stable at 2.40 million tonnes sequentially despite the monsoon season. Sales volumes, however, increased 6% quarter-on-quarter to 2.38 million tonnes, supported by inventory liquidation. The share of flat steel products in the sales mix rose to 61% in the September quarter from 53% in the previous quarter. This, along with lower TMT sales within long products, helped improve average selling prices. Domestic sales accounted for 92% of total volumes, compared with 91% in the June quarter. Consolidated net debt declined to Rs 14,786 crore as of September 30, from Rs 15,927 crore at the end of June. The net debt-to-EBITDA ratio improved to 1.51 times from 1.71 times over the same period. Capital expenditure during the quarter stood at Rs 1,228 crore. The improvement in quarterly performance comes even as first-half profitability remained below the year-ago period, amid energy and input cost pressures arising from adverse geopolitical developments. For April-September FY27, consolidated revenue from operations rose 34% year-on-year to Rs 32,161 crore. Profit after tax attributable to shareholders fell 24% to Rs 1,619 crore from Rs 2,132 crore in the corresponding period last year. Adjusted EBITDA for the first half stood at Rs 5,171 crore, while crude steel production increased to 4.79 million tonnes from 4.09 million tonnes a year earlier. Steel sales reached 4.61 million tonnes. On the operational front, Jindal Steel commissioned a 192-km iron ore slurry pipeline connecting Barbil and Angul in Odisha. The integrated system is backed by an iron ore slurry-making and pumping complex with a capacity of 18 million tonnes per annum, aimed at improving raw material logistics and reducing road congestion, fuel consumption and emissions. Capital expenditure and expansion remain important priorities for the company, which has been scaling up its steelmaking capacity. Its consolidated capital work-in-progress stood at Rs 9,460 crore at the end of September, compared with Rs 7,265 crore at the end of March. The results indicate a sequential recovery in sales and pricing, alongside lower leverage, although the decline in first-half profit underscores continued pressure on year-to-date earnings compared with the previous year.