JKB Financial Services Ltd.

As on : 24-Jun-2025

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24-Jun-2025 10:45

Jindal Steel gains after broker maintains buy rating

The brokerage expects JSPL's EBITDA to nearly double by FY27, driven by improved operating leverage, a better product mix, lower production costs, and relatively stable steel prices.

It also projects a sharp rebound in volume growth. After a tepid 1% CAGR over FY22'25, volumes are expected to grow at 19% annually through FY27, supported by ongoing capacity expansions. JSPL is set to begin hot metal production from its 4.6 mtpa blast furnace in early Q2FY26, while a 3 mtpa basic oxygen furnace is also scheduled for commissioning by the end of that quarter. This ramp-up is expected to boost FY26 steel output and sales to 9 mt, marking a 12.5% year-on-year increase.

Jindal Steel and Power offers a product portfolio that caters to markets across the entire steel value chain. On a consolidated basis, Jindal Steel & Power reported net loss of Rs 339.40 crore in Q4 March 2025 as against net profit of Rs 935.37 crore in Q4 March 2024. Net sales declined 2.25% YoY to Rs 13183.13 crore in Q4 March 2025.

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