Jindal Steel Q1 FY27 Results (NSE: JINDALSTEL)
Signal: Margin pressure
The read
PAT fell 43.5% YoY as EBITDA margin compressed 690 bps to 17.3% despite 25.9% revenue growth, hit by coking coal cost inflation, higher depreciation (+28%) and finance cost (+84%). QoQ, margin improved 124 bps on VAS mix improvement to 66% and cost control. Credit rating upgraded to CARE AA+, and dispatch from Utkal B1 captive iron ore mines started, supporting long-term cost advantage. Claims: slurry pipeline commissioned (claim 2297 resolved).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹15,482.13 Cr | 25.9% | -6.1% |
| EBIT | ₹1,753.17 Cr | -24.3% | |
| Net profit | ₹844.79 Cr | -43.5% | |
| EPS | ₹8.3 | N/A | |
| EBIT margin | 17.3% |
P&L walk
Revenue grew 25.9% YoY driven by higher volumes (+14.8% production) and improved realisations, but EBITDA margin compressed 690 bps to 17.3% as cost inflation (coking coal) and higher D&A (+28%) and finance cost (+84%) outpaced revenue growth; net profit fell 43.5% YoY.
Key positives
- Credit rating upgraded to CARE AA+ (from AA) by CARE Ratings, reflecting improved financial profile.
- VAS mix improved to 66% (from 61% in Q4FY26 and 63% in Q1FY26), supporting realisations and margins.
- Dispatch from Utkal B1 captive iron ore mines commenced, enhancing raw material security and cost control (target ~40% captive share by Q4FY27).
- Net debt stable QoQ (₹15,927 Cr) despite ₹1,959 Cr capex outlay.
Key concerns
- PAT down 43.5% YoY on EBITDA margin contraction of 690 bps (24.2% → 17.3%) due to coking coal cost pressure and higher depreciation/finance costs.
- Production and sales declined sequentially (-10% and -15% respectively) due to planned maintenance shutdowns across key facilities.
- Net debt/EBITDA at 1.71x remains above the targeted 1.5x threshold, despite slight sequential improvement.
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