More Stories

Informist, Friday, Jan. 30, 2026

By Shruti Nair and Astha Oriel

MUMBAI – Jindal Steel Ltd. reported a sharp on-year fall in its consolidated net profit for the December quarter as the growth in total expenses surpassed the growth in revenue. The rise in expenses was driven mainly by a 43% on-year increase in raw material costs, as well as a 30% increase in net finance costs. As a result, the company's consolidated net profit fell 80% on year. 

Jindal Steel reported a consolidated net profit of INR 1.90 billion for the reporting quarter, sharply down from INR 9.50 billion in the year-ago quarter. The profit was less than half of the INR 4.46 billion net profit that the Street had expected. The company's total consolidated revenue from operations rose 11% to INR 130.27 billion from INR 117.51 billion in the year-ago quarter. Total sales grew in double digits both on quarter and on year. Analysts had expected the company's revenue to come in at INR 129.52 billion.

The cost of raw material rose to INR 66.56 billion from INR 46.52 billion in the year-ago quarter. Finance cost for the reporting quarter rose to INR 4.06 billion from INR 3.13 billion a year ago. The rise in costs was so sharp that even a negative inventory change of INR 2.87 billion could not prevent a fall in the net profit.  

The steel maker also incurred an exceptional cost of INR 545.60 million to comply with the new labour codes that came into effect in September. 

The company's tax outgo for the December quarter was INR 1.50 billion as against INR 2.49 billion a year ago. The company received a deferred tax gain of INR 1.19 billion for the December quarter. Without the deferred tax gain, however, the company's total tax expense would have been INR 2.69 billion for the reporting quarter. 

The increase in the raw material costs also impacted the company's operating performance, leading to a fall in its earnings before interest, tax, depreciation, and amortisation, and EBITDA per tonne. The company's adjusted EBITDA fell 25% on year to INR 15.93 billion, and the EBITDA per tonne fell nearly 38% on year to INR 6,981 per tonne.

The company said that raw material costs increased due to a higher coking coal rate, driven by commissioning of the blast furnace-3 at its Angul plant in Odisha. 

The company's crude steel production increased 26% on year to 2.51 million tonnes in Oct-Dec, whereas total sales increased 20% on year to 2.28 million tonnes. Of the company's total sales, the domestic sales were up 21% on year at 2.14 million tonnes, whereas exports were up 7% on year at 0.14 million tonnes. 

The company said that it is on track for commissioning of 3 million tonnes per annum at its Angul plant in the March quarter. The company's net debt was INR 154.4 billion as on Dec. 31. The company's total capital expenditure was INR 20.76 billion for the December quarter. 

For the nine-month period of Apr-Dec, the company's net profit declined 26% on year to INR 23.23 billion, whereas revenue from operations was up over 1% on year at INR 370.07 billion. Shares of Jindal Steel closed Friday at INR 1,132 apiece on the National Stock Exchange, down 2.38%. The company announced its Oct-Dec results post market hours.  End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.