Jindal Steel's Q1 net profit falls 44 pc to Rs 844 crore
Mumbai, July 24
Jindal Steel on Friday reported a 43.6 per cent year-on-year decline in its consolidated net profit to Rs 843.8 crore for the quarter ended June 30.
The company's consolidated net profit fell from Rs 1,495.97 crore in the corresponding quarter of the previous financial year and was also lower than Rs 1,041.24 crore reported in the January-March quarter (Q4 FY26), according to its stock exchange filing.
Consolidated revenue from operations rose 25.9 per cent year-on-year to Rs 15,482.13 crore during the quarter, compared with Rs 12,294.48 crore in the year-ago period.
However, revenue declined sequentially from Rs 16,217.93 crore recorded in the preceding quarter, as per its filing.
Total consolidated income stood at Rs 15,501.32 crore in the April-June quarter, up from Rs 12,324.88 crore a year earlier but lower than Rs 16,484.28 crore in the previous quarter.
The company's total consolidated expenses increased to Rs 14,296.36 crore from Rs 10,306.97 crore in the corresponding quarter last year.
Other comprehensive income for the quarter came in at Rs 99.86 crore, according to its filing.
Basic earnings per share (EPS) declined to Rs 8.30 in Q1 FY27 from Rs 14.73 in the year-ago quarter and Rs 10.27 in the preceding quarter.
Alongside its quarterly results, Jindal Steel announced a series of changes to its senior management.
The board appointed Vidya Rattan Sharma as an additional director and managing director for a two-year term with effect from July 24, 2026, subject to shareholders' approval.
The company also appointed Sandeep Modi as Chief Financial Officer, Rajiv Kumar as Chief Operating Officer, and Sukhjit S. Pasricha as Head of Human Resources, all effective July 24.
Jindal Steel further said S S Kothari Mehta & Co. LLP has been appointed as the company's statutory auditors for a five-year term, subject to shareholders' approval, from the conclusion of the 47th Annual General Meeting until the conclusion of the 52nd AGM.
The company added that Sunil Agrawal will step down as interim Chief Financial Officer but will continue to oversee the finance function.
— IANS
Reader Comments
Steel sector is facing headwinds globally due to oversupply from China and subdued demand. I'd rather see them focusing on cost optimization and value-added products than just volume growth. New CFO and COO appointments suggest they're serious about improving profitability. Let's give them some time to deliver results. 😊
Revenue up but profit down — classic margin compression story. Steel prices have softened globally while coking coal costs remain elevated. The management changes are interesting; hoping Vidya Rattan Sharma's two-year term brings strategic clarity. Also, basic EPS dropping from ₹14.73 to ₹8.30 is significant. Need a strong recovery plan pronto. 💪
It's not all bad news — 25% revenue growth YoY is solid. But with global steel demand sluggish and India's infrastructure push still ramping up, these numbers are a reality check. I appreciate the transparency in the filing, but need more clarity on how they plan to control expenses. The new management team has a tough job ahead. 🏭
One quarter doesn't make a trend. Steel is a cyclical industry — feast or famine. The fact that they're investing in new leadership and auditing processes shows forward thinking. But I'm concerned about the sequential revenue drop from ₹16,218 crore to ₹15,482 crore. That's a 4.5% drop QoQ. Need better execution in the coming quarters. 😐
Mixed bag really. Revenue up but profit down — those expenses are alarming! ₹14,296
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