Jindal Steel Posts 20% Rise in FY26 Profit, Despite Margin Pressure from Rising Costs

Jindal Steel Ltd Reports Record Production and Higher Revenue for FY26

India's fourth-largest steelmaker, Jindal Steel Ltd, reported a record production and higher revenue for the fiscal year 2026 (FY26), driven by stronger volumes and firm steel prices in the second half of the year. According to the company's exchange filing released after market hours on Friday, net profit attributable to owners rose 20% to ₹3,367 crore, while revenue from operations grew 8% to ₹53,553 crore.

The year's adjusted earnings before interest, tax, depreciation, and amortization (Ebitda) however, fell 3% to ₹9,099 crore, as higher input costs weighed. Jindal Steel's cost of materials consumed rose about 12% from a year ago to ₹23,089 crore in FY26. The adjusted Ebitda margin fell to 17.09% in FY26 from 18.76% in FY25, with the Ebitda figure adjusted for a one-off forex gain of ₹561 crore, the company said.

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The steelmaker's revenue from operations for FY26 jumped 7% to ₹53,225 crore from ₹49,765 crore in FY25, supported by higher steel production and sales volumes. Jindal Steel's consolidated crude steel production rose to 14% to a record 9.25 million tonnes, while sales volume was up 9% to 8.68 million tonnes.

The company's quarterly performance and outlook were also positive, with Jindal Steel reporting a net profit of ₹1,044.75 crore in the March quarter against a loss reported a year ago, while revenue jumped 23% to ₹16,217.93 crore. Production and sales for the quarter were at 2.65 million tonnes and 2.62 million tonnes, respectively.

Domestic demand remained robust, accounting for 95% of total sales, while the share of value-added steel products rose to 61%, which typically supports better margins. The New Delhi-headquartered steelmaker's net debt rose to ₹16,019 crore as of 31 March 2026, compared to ₹15,443 crore at the end of December, mainly due to ongoing capital expenditure.

During FY26, Jindal Steel commissioned key 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 steelmaking capacity to 15.6 million tonnes per annum. The company also secured the Thakurani-A1 iron ore block, strengthening raw material security.

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