Jindal Steel reported INR1,875 crore EBITDA for the quarter, impacted by planned shutdowns costing INR174 crore. The company commissioned a 4.6 million tonne blast furnace and a 3 million tonne Basic Oxygen Furnace at Angul. Net debt decreased to INR14,156 crores. Focus remains on increasing capacity utilization and cost efficiencies, including AI implementation. Coking coal costs are expected to rise by $3-$5 per tonne in Q3 FY26.
Capacity and Production
Jindal Steel commissioned a 4.6 million tonne per annum Bhagavati Subhadrika Blast Furnace-II (BF-II) and a new 3 million tonne per annum Basic Oxygen Furnace -2 (BOF2) at its Angul plant in Q2 FY26. These additions increase Angul’s hot metal capacity to 8.85 million tonnes per annum and crude steel making capacity to 9 million tonnes per annum. The company is on track to achieve 12 million tonnes per annum at Angul within the current financial year and 15.6 million tonnes of steel making capacity by year-end.
Financial Performance
Consolidated adjusted EBITDA for the quarter stood at INR1,875 crores with an adjusted EBITDA per tonne of INR10,010. The results were impacted by planned shutdowns, resulting in costs of approximately INR174 crores. The Profit After Tax (PAT) for the quarter was reported as INR635 crores.
Debt and Capex
Consolidated net debt as of September 30, 2025, decreased to INR14,156 crores, a sequential decrease of INR244 crores. Net debt-to-EBITDA stood at 1.48x at the end of Q2. The company spent INR2,699 crores in capex during the quarter, bringing the total capex spent to INR30,849 crores out of the total announced capex of INR47,043 crores.
Operational Efficiency
Jindal Steel is implementing artificial intelligence (AI) to improve operational efficiency, safety, and productivity. IoT sensors are deployed to predict equipment failures, computer vision and video analytics are used for safety compliance, and AI models are used to optimize blast furnace operations and gasifier efficiency.
Market Outlook
The company anticipates that coking coal consumption costs will increase by $3 to $5 per tonne sequentially in Q3 FY26. Domestic steel prices are currently lower by around 2% to 3% compared to Q2, but prices are expected to improve post the festival season. The company expects demand to pick up from November onwards.
Value-Added Products
The share of value-added products in the total sales mix reached 73% in the reported quarter. Jindal Steel is focused on increasing the share of flat products in its sales mix, with the flat product share increasing from 44% to 49% quarter-on-quarter.
Source: BSE
