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Jindal Steel Q2 Profit Falls 26% Amid Softer Steel Prices

Jindal Steel & Power reported a significant 26% drop in quarterly net profit despite seeing revenue growth. The company's performance was impacted by higher input costs and softer steel market conditions. In a key leadership move, JSPL appointed Gautam Malhotra as their new CEO with immediate effect. Meanwhile, the company continues its expansion with the commissioning of India's second-largest blast furnace at their Angul facility.

Key Points: Jindal Steel Q2 Net Profit Drops 26 Percent to Rs 635 Crore

  • Consolidated net profit fell 26.2% to Rs 635 crore year-on-year
  • Revenue saw modest 4.2% growth to Rs 11,686 crore in Q2
  • Company appointed Gautam Malhotra as new CEO effective October 28
  • JSPL commissioned India's second-largest blast furnace at Angul plant
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Jindal Steel Q2 net profit falls 26 pc to Rs 635 crore

JSPL reports 26% profit decline to Rs 635 crore in Q2 FY26 despite revenue growth, appoints new CEO Gautam Malhotra amid expansion projects.

"The company did not immediately disclose reasons behind the decline in quarterly profit, but analysts attribute it to higher input costs and softer steel prices in the domestic market. - Market Analysts"

New Delhi, Oct 28

Jindal Steel & Power Ltd (JSPL) on Monday reported a 26.2 per cent year-on-year (YoY) decline in its consolidated net profit to Rs 635.08 crore for the second quarter of FY26, compared to Rs 860.47 crore in the same period last year.

Sequentially, the company's profit dropped over 57 per cent from Rs 1,495.97 crore recorded in the April-June quarter.

According to its exchange filing, revenue from operations, however, saw a modest rise of 4.21 per cent to Rs 11,685.88 crore in the July-September quarter, as against Rs 11,213.31 crore in the corresponding period of the previous year.

Meanwhile, the company's total revenue in the April-June quarter stood at Rs 12,294.48 crore.

In a key management update, JSPL announced the appointment of Gautam Malhotra as Chief Executive Officer, effective October 28. Malhotra, who joined the company in May 2024, brings over 19 years of industry experience and has worked across multiple departments within the organisation.

The company did not immediately disclose reasons behind the decline in quarterly profit, but analysts attribute it to higher input costs and softer steel prices in the domestic market.

Meanwhile, the consolidated net debt stood at Rs 14,156 crore as at the end of the second quarter against Rs 14,400 crore as of June 30. The total capex for the quarter was Rs 2,699 crore, primarily driven by the expansion projects at Angul, the company said.

According to the filing, during the quarter, Jindal Steel commissioned the country's second-largest blast furnace -- Bhagavati Subhadrika BF-II at Angul (rated capacity 4.6 MTPA; useful volume 5,499 cubic metres), more than doubling the site's hot-metal capacity from 4.25 to 8.85 million tonnes per annum (MTPA).

Jindal Steel shares closed in positive territory on Tuesday. The scrip ended the session at Rs 1,074.90, up 3.93 per cent.

- IANS

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Reader Comments

P
Priya S
The commissioning of that massive blast furnace at Angul is really impressive! Doubling capacity shows they're thinking long-term. Short-term profit dips are acceptable when you're building for future growth. Good to see Indian companies investing in infrastructure.
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Arjun K
As a shareholder, I'm concerned about the 57% sequential drop. Management should be more transparent about the reasons. Just saying "higher input costs" isn't enough detail. Hope the new CEO brings better communication. 📉
S
Sarah B
Interesting that despite profit falling, revenue actually increased slightly. Shows they're selling more volume but at lower margins. The capex spending of ₹2,699 crore is massive - hope this investment pays off in the coming quarters.
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Vikram M
The market seems optimistic despite the numbers - stock closed up nearly 4%. Investors probably see the expansion projects as positive for future earnings. Steel sector is cyclical, this might just be a temporary phase.
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Michael C
Reducing net debt from ₹14,400 crore to ₹14,156 crore is a positive sign in this challenging environment. The company is managing its balance sheet well while pursuing aggressive expansion. That's good financial discipline.

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