Jindal Steel Limited reported a 25% quarter-on-quarter increase in production for Q3FY26, reaching 2.51 million tons. The company commissioned new facilities, including the SBPP Module 1 & 2 and CCL1. Despite increased sales volume, revenue only increased by 12% due to weaker steel prices. The company expects improved performance in Q4 with normalizing coke costs and improving steel realizations, but coking coal costs are expected to increase by $18-$20 per ton sequentially.
Q3FY26 Performance Overview
Jindal Steel Limited (JSL) saw a 25% quarter-on-quarter increase in total production, reaching 2.51 million tons in Q3FY26. This growth was fueled by the ramp-up of BF2 and BOF2 facilities in Angul and the Bhagavati Subhadrika Blast Furnace-II, which achieved 48% capacity utilization. Sales volume increased by 22% quarter-on-quarter to 2.28 million tons.
Financial Highlights
Consolidated gross revenue rose by 12% quarter-on-quarter to INR 15,172 crores. Adjusted EBITDA was Rs. 1,593 crores, with a margin of 10.5% and EBITDA per ton of Rs. 6,981. This includes a one-time BF2 start-up cost of INR 350 crores. Consolidated PAT for the quarter, after accounting for the one-time start-up cost, was INR 189 crores.
Operational Developments
The company operationalized SBPP Module 1 of 525 MW and also synchronized SBPP Module 2 of 525 MW to the grid. CCL1 was commissioned, adding 0.2 million tons per annum capacity. The Utkal B1 mine has opened, and overburden removal is underway. The basic oxygen furnace 3 at Angul (3 million tons per annum) remains on track for commissioning by Q4FY26.
Market Dynamics and Outlook
Domestic steel prices in India corrected during the quarter but have since recovered from mid-December 2025. The company anticipates rising coal consumption costs in Q4FY26 by $18-$20 per ton sequentially. The company reiterate they are maintaining the guidance of net debt to EBITDA to sub 1.5x times through the cycle.
Strategic Focus
Jindal Steel is focused on AI and digitalization to drive productivity and efficiency. The company has been included in the S&P Global Sustainability Yearbook 2026. Furthermore, they have been awarded an India-Sweden Industry Transition Partnership Feasibility Project to evaluate a CO2-neutral steel production facility.
Source: BSE
