Jindal Steel Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Jindal Steel Ltd filed with BSE on 31 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Jindal Steel reported Q1FY27 consolidated adjusted EBITDA of Rs 2,667 crores and profit after tax of Rs 844 crores, with revenue down around 8% sequentially due to a planned plant maintenance shutdown. Management said the share of value-added products rose from 61% in Q4FY26 to 66% in Q1FY27, while average selling price improved by around Rs 7,500 per ton. The newly appointed leadership team, including Managing Director Vidya Ratan Sharma, COO Rajiv Kumar and CFO Sandeep Modi, outlined plans to ramp up blast furnace utilization, commission the slurry pipeline, and reduce costs.
Numbers mentioned
Consolidated adjusted EBITDA: INR 2,667 crores (Q1FY27)
p. 8
“Consolidated adjusted EBITDA stood at INR 2,667 crores.”
Sandeep Modi, page 8 of the filed PDF · View the filing
Consolidated adjusted EBITDA per ton: INR 11,937 per ton (Q1FY27)
p. 8
“Consolidated adjusted EBITDA per ton increased by INR 1,843 per ton, taking it to INR 11,937 per ton.”
Sandeep Modi, page 8 of the filed PDF · View the filing
Consolidated profit after tax: INR 844 crores (Q1FY27)
p. 9
“Consolidated profit after tax for the quarter stood at INR 844 crores.”
Sandeep Modi, page 9 of the filed PDF · View the filing
Net debt: INR 15,927 crores (Q1FY27)
p. 9
“Net debt stood at INR 15,927 crores, translating into a net debt to EBITDA ratio of 1.71x.”
Sandeep Modi, page 9 of the filed PDF · View the filing
Finance cost: INR 548 crores (Q1FY27)
p. 9
“Finance cost charged to the P&L increased to INR 548 crores, primarily due to the capitalization of the major expansion assets during Q4FY26.”
Sandeep Modi, page 9 of the filed PDF · View the filing
Share of value-added products: 66% (Q1FY27)
p. 8
“The share of value-added product has increased from 61% in Q4FY26 to 66% in Q1FY27.”
Sandeep Modi, page 8 of the filed PDF · View the filing
Q1 capex spend: roughly INR 2,000 crores (Q1FY27)
p. 9
“We invested roughly INR 2,000 crores during Q1.”
Sandeep Modi, page 9 of the filed PDF · View the filing
Cumulative expansion capex spend: INR 37,457 crores (cumulative to date)
p. 9
“Cumulative spending under our expansion program now stands at INR 37,457 crores out of the announced capex of INR 47,043 crores.”
Sandeep Modi, page 9 of the filed PDF · View the filing
NSR movement - flat: around INR 7,000 per ton up (quarter-on-quarter)
p. 16
“Sandeep here, just to conclude the NSR movement in case of the flat was around INR 7,000 per ton and in case of long around INR 4,500 per ton.”
Sandeep Modi, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Net debt to EBITDA ratio — below 1.5x · Q2FY27
stated firmly by Sandeep Modi
p. 9
“we remain confident of achieving the ratio below our stated threshold of 1.5x during Q2FY27 and continue to have through the commodity cycle, reinforcing our position as one of the strongest balance sheets in the industry.”
Sandeep Modi, page 9 of the filed PDF · View the filing
FY27 capex plan — approximately INR 8,500 crores · FY27
stated firmly by Sandeep Modi
p. 9
“Against our FY27 capex plan of approximately INR 8,500 crores.”
Sandeep Modi, page 9 of the filed PDF · View the filing
Blast furnace hot metal production — 12,000 tons per day · after monsoon/September
stated firmly by Vidya Ratan Sharma
p. 11
“Our plan is that after this monsoon season, we'll be in a position to ramp it up to 12,000 tons per day and by end of December, we'll make it 13,000 tons per day, which will be 100% capacity utilization.”
Vidya Ratan Sharma, page 11 of the filed PDF · View the filing
Slurry pipeline commissioning — commissioning · first half of August
stated conditionally by Vidya Ratan Sharma
p. 13
“Hopefully, you will hear this news very soon, maybe in first half of August.”
Vidya Ratan Sharma, page 13 of the filed PDF · View the filing
Coking coal cost increase — $20 to $25 per ton
stated firmly by Sandeep Modi
p. 9
“which is in line with our guidance of $20 to $25 per ton of coal”
Sandeep Modi, page 9 of the filed PDF · View the filing
FY27 sales volume — 10.5 to 11 million ton · FY27
stated firmly by Vidya Ratan Sharma
p. 15
“Yes, yes, you're right. We will maintain the run rate, rather we will increase the run rate because we had taken a shutdown in the quarter 1.”
Vidya Ratan Sharma, page 15 of the filed PDF · View the filing
Cost reduction — INR 1,000 per ton
stated as an aspiration by Vidya Ratan Sharma
p. 20
“I think there is a chance of, roughly figures, I am not committing something, but roughly because I have to talk to my colleagues also, at least INR 1,000 per ton reduction is possible in terms of cost.”
Vidya Ratan Sharma, page 20 of the filed PDF · View the filing
Capital expenditure spend rate — INR 7,000 crores to INR 8,000 crores or maybe INR 10,000 crores per year
stated as an aspiration by Vidya Ratan Sharma
p. 11
“we want to grow not at the rate of tons, but at the spending rate of about INR 7,000 crores to INR 8,000 crores or maybe INR 10,000 crores per year.”
Vidya Ratan Sharma, page 11 of the filed PDF · View the filing
ROCE target from new projects — 18% to 20%
stated firmly by Vishal Chandak
p. 19
“if you look at our capital allocation framework where we have clearly mentioned that we would deliver about 18% to 20% ROCE”
Vishal Chandak, page 19 of the filed PDF · View the filing
Crude steel capacity utilization — 15.6 million tons
stated as an aspiration by Vidya Ratan Sharma
p. 10
“So how to reach 15.6 million tons, this is one.”
Vidya Ratan Sharma, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Sharma outlined three focus areas: capacity utilization, producing value-added products rather than commodity, and disciplined capex spending under an earn-and-invest model without adding new borrowings for commodity expansion.
Answered by Vidya Ratan Sharma
Asked by Amit Dixit: What are the key focus areas for Sharma this time as MD, and are there plans for further capacity expansion at Angul?
p. 11
“we are not going to burden our balance sheet with the borrowings. We do not want to take loans; we do not want to borrow the funds to expand in the commodity area.”
Vidya Ratan Sharma, page 11 of the filed PDF · View the filing
Roopali Mehra said HRC prices were about Rs 800 per ton lower and TMT was down almost Rs 8,000 on the index versus Q1FY27, attributing it to seasonal weakness.
Answered by Roopali Mehra
Asked by Alok Deora: What is the pricing trend for HRC and TMT versus Q4 and Q1 averages?
p. 13
“So currently if you look at the flat prices for HRC, we've only looked at INR 800 per ton lower, pricing vis-a-vis Q1FY27. And if you look at TMT, we're looking at almost INR 8,000 on the index.”
Roopali Mehra, page 13 of the filed PDF · View the filing
Modi broke down the increase into iron bearing cost, Middle East conflict impact, coking coal cost, and operating leverage from the shutdown, and said costs should improve in Q2 with higher production.
Answered by Sandeep Modi
Asked by Sumangal Nevatia: What were the drivers of the sharp sequential cost increase, and how will costs trend in coming quarters?
p. 18
“There was iron bearing cost increase around say INR 500 per ton. We had a Middle East conflict impact of around $12 to $13. Coking coal cost increase as I said around $23 per ton.”
Sandeep Modi, page 18 of the filed PDF · View the filing
Modi cited the Rs 700 per ton slurry pipeline benefit, improving captive iron ore mix, and Jindal port unloading, while Chandak added that individual project savings could be reverse-calculated from the 18-20% ROCE framework.
Answered by Sandeep Modi
Asked by Rahul Gupta: What quantified cost savings can be expected from coal mines, DRI plant, slurry pipeline, and conveyor belt over the next couple of years?
p. 18
“So, one of the key cost saving will come from the slurry pipeline, which I think we have already told in the market about INR 700 per ton benefit that as Mr. Sharma has said is coming from the Q2, that you should see a saving.”
Sandeep Modi, page 18 of the filed PDF · View the filing
Sharma said a roughly Rs 1,000 per ton cost reduction is possible, and explained the Jharkhand MoU is conditional on the government allocating iron ore, with no investment committed yet.
Answered by Vidya Ratan Sharma
Asked by Ritesh Shah: Can management quantify cost savings over 2-3 years and explain the Jharkhand MoU in context of the capital allocation framework?
p. 21
“But it is an MoU only; we have not committed any investment till these requirements are met out.”
Vidya Ratan Sharma, page 21 of the filed PDF · View the filing
Sharma acknowledged the concern but said the upper-middle management of 1,800-2,000 people remains stable and drives execution regardless of top-level changes.
Answered by Vidya Ratan Sharma
Asked by Jashandeep Singh Chadha: Should investors be concerned about frequent senior management changes affecting strategic continuity?
p. 17
“But aim is to give the stability and this you will see that the team is stable and more than that, 1,800 people those who are in the upper middle management level, say from manager to GM or assistant vice president or vice president, they are pretty stable and they are the force which drives the organization.”
Vidya Ratan Sharma, page 17 of the filed PDF · View the filing
Sharma explained that EBITDA varies widely by product, with some products earning much higher margins than others, and that the company is working to shift the low-EBITDA product mix toward higher-value products over time.
Answered by Vidya Ratan Sharma
Asked by Pathanjali Srinivasan: Why isn't the rising share of value-added products and flats reflecting in EBITDA per ton?
p. 23
“So somewhere we earn as high as INR 25,000 of EBITDA, somewhere we earn only INR 7,000 of EBITDA.”
Vidya Ratan Sharma, page 23 of the filed PDF · View the filing
Risks flagged
Geopolitical conflicts (Russia-Ukraine, Israel-Iran) have disrupted the global economy and steel demand
p. 4
“For the last four years, we are seeing that Ukraine and Russia war is going on, which has shattered the economy, which has shattered not only the economy in Europe but everywhere in the world.”
Vidya Ratan Sharma, page 4 of the filed PDF · View the filing
Seasonal monsoon weakness reducing construction steel demand and disrupting operations
p. 12
“about a week back, there was a very heavy rain, and this rain was more than 100 millimetres in one or two hours' time. So, this has disrupted the complete water management and also this has made the failure of the electrical grid and electrical system.”
Vidya Ratan Sharma, page 12 of the filed PDF · View the filing
Rising coking coal costs due to demand-supply dynamics and Middle East conflict impact
p. 18
“We had a Middle East conflict impact of around $12 to $13. Coking coal cost increase as I said around $23 per ton.”
Sandeep Modi, page 18 of the filed PDF · View the filing
Iron ore and coal input costs are uncontrollable, dependent on external suppliers
p. 20
“Iron ore is also uncontrollable for us because NMDC and OMC predominantly decide the prices.”
Vidya Ratan Sharma, page 20 of the filed PDF · View the filing
Global steel market surplus from Chinese capacity exceeding demand reduction
p. 5
“So, this has created a little surplus in the international market”
Vidya Ratan Sharma, page 5 of the filed PDF · View the filing
Slurry pipeline commissioning could be delayed by continued rainy season
p. 13
“So now today we are aiming maybe in the first half of August, but if the rainy season goes on and there is some problem, then this may delay also, but that is not in our hands.”
Vidya Ratan Sharma, page 13 of the filed PDF · View the filing
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