Jindal Steel Q2FY27 Revenue Rises 44% YoY

Steel production volume was 2.40 MT in Q2FY27, stable sequentially (Q1FY27: 2.40 MT) and up 20% YoY (Q2FY26: 2.00 MT).
Steel sales volume was 2.38 MT in Q2FY27, up 7% QoQ (Q1FY27: 2.23 MT) and up 27% YoY (Q2FY26: 1.87 MT).
The increase in sales volume was supported by inventory liquidation.
The share of flats in the product mix increased to 61% in Q2FY27.
Key drivers include the commissioning of the Utkal B1 (5.5 MTPA) facility and the 18 MTPA iron ore slurry pipeline.

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Gross Revenue: ₹19,448 crore (Q1FY27: ₹17,834 crore; Q2FY26: ₹13,505 crore)
Net Revenue: ₹16,704 crore (Q1FY27: ₹15,501 crore; Q2FY26: ₹11,708 crore)
Adjusted EBITDA: ₹2,504 crore, adjusted for a one-off FX gain of ₹68 crore (Q1FY27: ₹2,667 crore; Q2FY26: ₹1,875 crore)
PAT: ₹771 crore (Q1FY27: ₹844 crore; Q2FY26: ₹635 crore)
Adjusted EBITDA per ton: ₹10,529 (Q1FY27: ₹11,937; Q2FY26: ₹10,010)
Drivers of financial performance: Higher sales volume and ASP, though offset by increased raw material costs (coking coal) and other operating costs (power, fuel, freight).
Key Risks: Fluctuations in raw material prices (coking coal, iron ore) and market demand conditions.

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Net Debt: ₹14,786 crore (Q1FY27: ₹15,927 crore; Q2FY26: ₹14,156 crore)
Net Debt to EBITDA (TTM): 1.51x (Q1FY27: 1.71x; Q2FY26: 1.48x)
Strong Liquidity: ₹7,237 crore
Financial Health Insights: Continuous deleveraging with net debt reduction; strong liquidity position maintained.

Capital Expenditure: Annual guidance of ₹7,500 - ₹10,000 crore, primarily funded through internal accruals.
Investment Rationale: Focus on growth in steel & ancillary businesses (mines, power, ports) with green-tech, primarily in India.

Investments in Innovation: Enterprise-wide AI transformation (JARVIS platform) to improve productivity, safety, and decision-making.
Commissioned a 192 km eco-friendly iron ore slurry pipeline (18 MTPA capacity).
Strategic partnership with IIT Hyderabad to establish a Centre of Excellence.
Expected impact: Improved operational efficiency, logistics resilience, and product innovation.
Strategic Rationale: Scaling up integrated steel production capacity and expanding into value-added products.

Macro/Industry Trends: India's finished steel consumption was 43.4 MT in Q2FY27; India was a net finished steel importer (0.1 MT) for the third consecutive quarter. HRC prices maintained momentum, while TMT prices softened seasonally before recovering. Coking coal prices increased due to supply disruptions.
Impact on Company: Higher coking coal costs impacted margins; strong domestic infrastructure demand supports sales.

Strategic Outlook: Committed to disciplined capital allocation with a target project pre-tax ROCE of 18-20%.
Growth Guidance: Annual capex of ₹7,500-₹10,000 crore; focus on ramping up new facilities to improve current ROCE of 8%.
Capital Return: Declared a 200% dividend in FY26 while meeting growth capital requirements.
Risks and Opportunities: Highlighted risks include fluctuations in earnings, economic growth, competition, and government policies.

Sustainability: World's first and largest coal gasification plant for steel-making; adding renewable power.
Circularity: Awarded a Guinness World Record for building a 1.85 km road exclusively with processed steel slag.
Safety: Launched the 'Suraksha Kavach' smartwatch for real-time health and safety monitoring.
Social Impact: Positively impacting 14.6 million+ lives.

World Steel Association's 2026 Steelie Award for "Excellence in People" for the Dakshata safety initiative.
Guinness World Record for the world's longest steel slag road.