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Informist, Wednesday, Jul. 22, 2026

 

By Astha Oriel 

 

NEW DELHI – Jindal Steel Ltd. is likely to report a significant year-on-year decline in its consolidated bottom line for the June quarter, according to brokerages tracking the company. The company's bottom line is likely to be weighed down by an increase in raw material costs, which will partially offset the increase in net sales realisations, the brokerages said. The company's top line is expected to increase on year due to an increase in volume.

 

The company's consolidated net profit for the June quarter is expected at INR 10.47 billion, down nearly 30% on year and almost 44% on quarter, according to the average of estimates from 14 brokerage firms. The highest estimate of net profit is INR 14.75 billion from PhillipCapital (India) Pvt. Ltd., and the lowest estimate is INR 8.43 billion from Ambit Capital Pvt. Ltd. If realised, this is likely to be the second consecutive quarter when the company's net profit will rise sequentially, despite an on-year decline. 

 

The net sales of the metals major are expected at INR 138.29 billion, up over 12% on year but down nearly 15% on quarter, according to the brokerages estimates. The highest estimate of net sales is at INR 142.67 billion from Elara Securities (India) Pvt Ltd., while the lowest estimate is at INR 127.85 billion from PhillipCapital (India). This is likely to be the fourth consecutive quarter of an on-year increase in the company's top line. 

 

Five brokerages expect the sales volume for the June quarter at 2.1-2.2 million tonnes, higher than the 1.90 million tonnes in the year-ago quarter. The sales volume will be, however, lower than the 2.62 million tonnes in the March quarter. 

 

Emkay Global Financial Services and Nuvama Wealth Management Ltd. expect a sequential decline in the company's sales volume due to planned maintenance shutdowns across the Angul and Raigarh facilities. JM Financial Institutional Securities Pvt Ltd and Nomura Equity Research estimate an on-year increase in volumes due to ramp-up of new capacities.

 

The company's earnings before interest, tax, depreciation, and amortisation, or EBITDA, is expected at INR 25.23 billion, down over 15% on year, according to the average of estimates by 13 brokerage firms. The highest estimate for EBITDA is INR 29.78 billion from PhillipCapital (India), and the lowest estimate is at INR 23.20 billion Systematix Shares and Stocks (India) Ltd.

 

Six brokerage firms expect the company's EBITDA per tonne to be INR 11,000 – INR 12,179, lower than INR 15,680 in the year-ago quarter. An increase in coking coal prices and iron ore costs in the June quarter are likely to offset the year-on-year increase in net sales realisation, weighing on EBITDA per tonne. The raw material costs per tonne stood at INR 32,849, up 3% on quarter and 22% on year for Jindal Steel, according to Nomura. The domestic iron ore prices increased INR 700 per tonne quarter-on-quarter, while imported coking coal prices increased $25 per tonne sequentially, according to Nomura. 

 

JM Financial expects a 1.2% on-year and nearly 6% on-quarter increase in net sales realisation due to price hikes for flat and long steel products during the June quarter. 

 

The company will announce its June quarter results on Friday. Analysts will track the management's comments on the guidance for steel production, and sales volume for FY27, timelines for full ramp-up of new capacities, the capital expenditure plans for FY27, and the announcement of a new chief executive officer following the resignation of Gautam Malhotra.

 

At 1331 IST, shares of Jindal Steel traded 0.8% higher at INR 1,046.60 on the National Stock Exchange. Shares of the company have declined over 17% since the company reported March quarter earnings on May 1. 

 

Of the 14 brokerage reports on the company available with Informist, 12 have given a 'buy' recommendation with an average target price of INR 1,337, which is nearly 28% higher than the current share price. One brokerage has given a 'hold' rating with a target price of INR 1,303, and one has given a 'sell' rating with target price of INR 1,018. 

 

Following are the June quarter earnings estimates for Jindal Steel Ltd. from 14 brokerages in descending order of the estimate of net profit, in INR billion:

 

Brokerage	Net sales	Net profit	EBITDA
PhillipCapital (India) Pvt Ltd	127.85	14.75	29.78
ICICI Securities Ltd	140.31	13.75	26.68
Nomura Equity Research	139.47	12.12	23.70
Emkay Global Financial Services Ltd	142.39	11.63	25.01
Kotak Securities Ltd	140.73	11.16	25.91
Prabhudas Lilladher Pvt Ltd	137.40	10.00	24.60
IDBI Capital Market Services Ltd	136.29	9.93	25.58
Elara Securities (India) Pvt Ltd	142.67	9.51	25.51
Motilal Oswal Financial Services Ltd	140.30	9.50	24.10
Anand Rathi Share and Stock Brokers Ltd	136.51	9.29
JM Financial Institutional Securities Pvt Ltd	137.27	9.17	24.62
Nuvama Wealth Management Ltd	140.49	8.85	25.14
Systematix Shares and Stocks (India) Ltd	136.80	8.50	23.20
Ambit Capital Pvt Ltd	137.51	8.43	24.13
Average	138.29	10,470.71	25.23

 

Edited by Avishek Dutta

 

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