Jindal Steel Q2 net profit falls 26 pc to Rs 635 crore

New Delhi, Oct 28 Jindal Steel & Power Ltd (JSPL) on Monday reported a 26.2 per cent year-on-year (YoY) decline in its consolidated net profit to Rs 635.08 crore for the second quarter of FY26, compared to Rs 860.47 crore in the same period last year.

Sequentially, the company’s profit dropped over 57 per cent from Rs 1,495.97 crore recorded in the April-June quarter.

According to its exchange filing, revenue from operations, however, saw a modest rise of 4.21 per cent to Rs 11,685.88 crore in the July–September quarter, as against Rs 11,213.31 crore in the corresponding period of the previous year.

Meanwhile, the company's total revenue in the April–June quarter stood at Rs 12,294.48 crore.

In a key management update, JSPL announced the appointment of Gautam Malhotra as Chief Executive Officer, effective October 28. Malhotra, who joined the company in May 2024, brings over 19 years of industry experience and has worked across multiple departments within the organisation.

The company did not immediately disclose reasons behind the decline in quarterly profit, but analysts attribute it to higher input costs and softer steel prices in the domestic market.

Meanwhile, the consolidated net debt stood at Rs 14,156 crore as at the end of the second quarter against Rs 14,400 crore as of June 30. The total capex for the quarter was Rs 2,699 crore, primarily driven by the expansion projects at Angul, the company said.

According to the filing, during the quarter, Jindal Steel commissioned the country’s second-largest blast furnace -- Bhagavati Subhadrika BF-II at Angul (rated capacity 4.6 MTPA; useful volume 5,499 cubic metres), more than doubling the site’s hot-metal capacity from 4.25 to 8.85 million tonnes per annum (MTPA).

Jindal Steel shares closed in positive territory on Tuesday. The scrip ended the session at Rs 1,074.90, up 3.93 per cent.

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