JTL Industries Limited Q2 FY27 Earnings Conference Call Summary

NSE Symbol: JTLIND

Conference Call Date: November 03, 2026

Financial Performance Highlights

Q2 FY27 Performance:

  • Revenue from operations: ₹613.8 crores, representing 43.0% year-on-year growth
  • EBITDA: ₹50.8 crores, with 46.5% year-on-year growth
  • EBITDA margin: 8.3% (compared to 8.1% in Q2 FY26)
  • Profit after tax: ₹29 crores, reflecting 30.7% year-on-year growth
  • PAT margin: 4.7%
  • Sales volume: 100,484 metric tons, registering 23.2% year-on-year growth
  • EBITDA per ton: ₹5,053, representing 19% year-on-year improvement

H1 FY27 Performance:

  • Highest ever half-year sales volume: 218,997 metric tons, reflecting 20.2% year-on-year growth
  • Revenue from operations: ₹1,335.4 crores, representing 37.2% growth
  • Highest ever half-yearly EBITDA: ₹109.5 crores with 88.7% year-on-year growth
  • EBITDA margin: 8.2%
  • EBITDA per ton: ₹5,000, registering 57.0% year-on-year growth
  • Profit after tax: ₹64.3 crores with 66.2% growth
  • PAT margin: 4.8%

Accounting Adjustment Note:

The reported PAT for Q2 and H1 FY27 includes an additional non-cash depreciation charge of ₹2.78 crores arising from assets revaluation undertaken at JTL Defence Limited in March 2026. Excluding this adjustment:

  • Normalized PAT for Q2 FY27 would have been ₹31.8 crores
  • Normalized PAT for H1 FY27 would have been ₹67.1 crores

Cash Flow and Capital Expenditure

  • Net cash flow from operating activities turned positive at ₹50 crores in H1 FY27 compared to outflow of ₹80.3 crores in corresponding period last year
  • Capital expenditure of ₹76.5 crores invested during H1 ended September 30, 2026 to support ongoing capacity expansion plans
  • Stand-alone investment of ₹67 crores made during H1, mostly at the company's Mangaon facility

Capacity Expansion and Operational Updates

New Capacity Status:

  • GP (Galvanized Pipe) capacity cold trials completed in pickling and GP line
  • Commercial production expected by end of current quarter (Q3 FY27)
  • Delays attributed to monsoon conditions and material production delays
  • Color-coated capacity of 4 lakh tons expected to commission in December 2026

Volume Guidance:

  • Q4 FY27 expected volume from new capacities: 25,000-30,000 tons
  • H2 FY27 typically 20% higher than H1, targeting ~260,000 tons
  • Full-year FY27 volume target: 480,000 tons (30% growth from 400,000 tons last year)
  • FY28 utilization target: 55% on 1.7 million tons capacity

Run Rate Projections:

  • Current average monthly run rate: 40,000 tons
  • GP line to add 10,000 tons monthly once operational
  • Color-coated complex to add 15,000 tons monthly
  • Target run rate: 65,000 tons monthly by year-end

Export Performance and Outlook

  • H1 FY27 export volume: 12,000 tons
  • October 2026 export: 5,000 tons (current run rate)
  • Full-year FY27 export target: 50,000-55,000 tons
  • New markets opened in Canada and U.S. with trial orders accepted
  • Container availability challenges persist due to Hormuz Strait issues and freight cost increases

Value-Added Products

  • Q2 FY27 value-added products volume: 28,000 tons
  • Current value-added product share: 30-35%
  • Target value-added product share for FY28: 50%
  • New GP line and color-coated production will be entirely value-added

Working Capital Management

  • Working capital days: 83 days in Q2 FY27 (75 days in Q1 FY27)
  • Strategy to reduce government sales (from 20% to 3% last year)
  • Focus on dealer market with shorter payment cycles
  • Target: 60 days by next year, 35 days by FY29
  • Vendor finance scheme with banks being developed for dealer base

JTL Defence Limited Performance

  • Subsidiary performance included in consolidated results
  • January 2026 start: 40 tons monthly production
  • October 2026: 140 tons monthly run rate
  • Q2 FY27 volume: 356 tons
  • December 2026 target: 250 tons monthly run rate
  • Q4 FY27 target: 750 tons
  • Capacity mandate: 1,000 tons monthly
  • New product expansion: coin blanks and bullet cups
  • Part capex completed, remainder scheduled for coming quarters

Capex Outlook

  • H1 FY27 capex: ₹70 crores
  • H2 FY27 expected capex: ₹125-150 crores
  • FY28 maintenance capex: ₹40-50 crores
  • API pipe capex: ~₹75 crores (H1 FY28)

Market Conditions and Demand Outlook

  • Secondary coil price: ₹64,000 with ₹600-₹750 increase this month
  • Primary-secondary price gap: ₹12-₹20 per kg depending on gauge
  • Supply contraction due to maintenance at Tata, SAIL, and AM/NS plants
  • Demand latency due to Diwali festivities
  • Expected demand pickup after November 15, 2026
  • Positive H2 demand outlook

Management Participants

  • Mr. Pranav Singla - Executive Director
  • Mr. Dhruv Singla - Executive Director
  • Mr. Naveen Kumar Laroiya - Chief Financial Officer
  • Mr. Saurabh Jain - CFO of JTL Defence Limited