Shares of Jindal Steel were in strong demand on Monday, rising 4.56 per cent to hit an intraday high of ₹1,278.9 apiece on the NSE, following the company’s announcement of its financial results for the fourth quarter (Q4) and the year ended March 31, 2026.
The company also declared a final dividend of ₹2 per share for FY26, subject to approval from shareholders at the ensuing Annual General Meeting and other requisite authorities.
The sentiment was further supported by favourable brokerage commentary. Analysts broadly retained their bullish stance, expecting steel prices to remain steady at healthy levels, thereby supporting margins.
The counter continued to witness solid investor demand. At 10:24 AM, the stock was trading at ₹1,261.20, up 3.12 per cent from its previous close of ₹1,223.10 on the NSE.
Jindal Steel Q4FY26 results
On Saturday, May 2, Jindal Steel reported a consolidated net profit of ₹1,041 crore for Q4FY26, aided by higher revenues driven by “record sales.” The company had posted a loss of ₹304 crore in the same quarter of the previous fiscal year (Q4FY25).
Total income during the quarter rose 25 per cent year-on-year to ₹16,484.28 crore, compared to ₹13,254.94 crore in Q4FY25. On a sequential basis, net profit surged fivefold from ₹189 crore reported in the October–December quarter of FY26.
The company said that it achieved its highest-ever production and sales during FY26. Production increased 14 per cent to 9.25 MT, while sales rose 9 per cent year-on-year to 8.68 MT.
“Jindal Steel enters FY27 with a total steelmaking capacity of 15.6 MTPA, a lower cost base, secured raw material supply, and a portfolio mix weighted towards value-added products. In FY27, the company is aiming to achieve steel production volumes of 11.0–11.5 MT and sales volumes of 10.5–11.0 MT. On sustainability, Jindal Steel is executing an ongoing reduction programme in CO₂ emissions per tonne of crude steel,” said the company.
Meanwhile, here’s what brokerages said on Jindal Steel:
Motilal Oswal Financial Services (MOFSL): Buy | Target price: ₹1,400
MOFSL has retained its ‘Buy’ rating on the stock with a target price of ₹1,400, based on 8.5x EV/Ebitda on FY28 estimates. At the current market price, the stock trades at 7.8x EV/Ebitda on FY28E, implying an 11 per cent upside.
The brokerage said Q4FY26 performance was strong, driven by higher net sales realisation (NSR) and improved volumes supported by recently added capacity.
Analysts Alok Deora and Sonu Upadhyay expect earnings to improve in FY27, aided by steel price recovery and volume growth from capacity ramp-up, though partially offset by rising coking coal costs. They further remain positive on the long-term outlook of the company.
“We expect the long-term outlook to remain positive for the company. With the recent increase in its crude steel capacity to 15.6 mtpa and finished steel to 13.8 mtpa, there is significant headroom for earnings growth. With the safeguard duty in place, we expect steel prices to remain steady at healthy levels and support margins,” wrote the analysts in a research report.
The brokerage noted that a large portion of capex has already been incurred, with the remainder to be funded through internal accruals, keeping net debt/Ebitda below 1.5x. Net debt stood at ₹160 billion at the end of FY26, translating to a net debt/Ebitda of 1.7x in Q4FY26.
However, MOFSL has cut its Ebitda estimates for FY27 by 9 per cent to factor in higher coal costs and gradual volume improvement, while largely maintaining FY28 estimates.
Elara Capital: Accumulate | Target price: ₹1,279
Elara Capital has retained its ‘Accumulate’ rating with a revised target price of ₹1,279 (earlier ₹1,187), based on 7x EV/Ebitda.
The brokerage expects profitability to improve, driven by operational efficiencies and recent capacity additions. It highlighted that the commissioning of the Barbil-Angul slurry pipeline in Q1FY27 could generate cost savings of ₹750–1,000 per tonne of finished steel. Additionally, the 1,050 MW Shri Bimla power plant is expected to stabilise in H1FY27.
In the near term, cost pressures may persist due to a $20–25 per tonne increase in coking coal prices in Q1FY27. However, tapering startup costs and benefits from operating leverage at higher utilisation levels should partly offset these headwinds.
“With the heavy capex cycle largely behind, Jindal Steel is now entering an asset-sweating phase, which should drive stronger return ratios and aid deleveraging, with leverage metrics expected to normalise by Q2FY27,” Elara Capital said.
The company has guided for FY27 sales volumes of 10.5–11.0 MT (versus 8.7 MT in FY26), implying growth of 21–27 per cent.
Elara has largely maintained its Ebitda estimates, factoring in near-term cost pressures and medium-term efficiency gains. However, it cautioned about risks including rising imports of low-cost steel, sharp increases in coking coal and iron ore prices, and a potential slowdown in demand across key end-user industries.
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(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers’ discretion is advised.)
