Jindal Steel FY26 profit up 20%, but costs weigh on margins

India’s fourth largest steelmaker Jindal Steel Ltd reported record production and higher revenue for FY26, helped by strong volumes and firm steel prices in the second half of the year. Net profit attributable to owners increased by 20% ₹Revenue from operations increased 8% to Rs 3,367 crore ₹53,553 crore, according to an exchange filing released after market hours on Friday.

However, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the year fell 3%. ₹9,099 crore due to the weight of high input costs. Jindal Steel’s consumed material cost increased by approximately 12% compared to a year ago. ₹23,089 crore in FY26. Adjusted EBITDA margin decreased from 18.76% in FY25 to 17.09% in FY26; The EBITDA figure was adjusted for one-time foreign exchange gains. ₹561 crore, the company said.

The steelmaker’s revenue from operations in FY26 increased by 7% ₹53,225 crore ₹49,765 crore in FY25 on the back of high steel production and sales volumes.

The steel producer’s consolidated crude steel production increased by 14% to a record 9.25 million tons, while its sales volume increased by 9% to 8.68 million tons.

Suman Kumar, metals and mining analyst at Philip Capital, said: “Jindal Steel is at an inflection point where we are seeing steel volumes rising on the back of capacity expansion and rise in steel prices; this has helped both Q4 and full year performances.” “However, costs will decline from FY27 as cost-saving initiatives have not yet begun.”

Quarterly performance and outlook

Jindal Steel reports net profit in March quarter ₹1,044.75 crore against the loss reported a year ago, while revenue was up 23% ₹16,217.93 crore.

Production and sales in this quarter were 2.65 million tons and 2.62 million tons, respectively. Domestic demand remains strong, accounting for 95% of total sales, while the share of value-added steel products has increased to 61%, generally supporting better margins.

Net debt of New Delhi-based steel producer increased ₹16,019 crore as of March 31, 2026 ₹15,443 crore at the end of December, mainly due to ongoing capital expenditure.

During FY26, Jindal Steel commissioned significant facilities, including a 4.6 million tonnes per annum blast furnace and two basic oxygen furnaces at its Angul plant in Odisha. These expansions increased the company’s total steel production capacity to 15.6 million tons per year. The company also secured the Thakurani-A1 iron ore block by strengthening raw material security.

The board recommended final dividend ₹2 per share for FY26, subject to shareholder approval.