Jindal Steel (JINDALST IN) – Q1FY27 Result Update – Ramp up VASP & cost savings: Next leg of growth – BUY
Published on 27 Jul 2026
Jindal Steel (JINDALST) delivered a healthy operational performance in Q1FY27, supported by strong volume growth, improved NSR and a richer product mix. Sales volumes increased 17% YoY, driven by the ramp-up of blast furnaces at at Angul, while resilient domestic demand and higher exports provided additional support. NSR improved sequentially on the back of higher flat and long steel prices, along with a higher share of value-added products (VASP), resulting in stable profitability despite elevated coking coal costs and maintenance shutdown taken during the quarter. Mgmt. reiterated that the shutdown-related production loss would be recovered over the balance of FY27, while the share of VASP is expected to increase further as downstream facilities continue to ramp up. At CMP, the stock is trading at 9.6x/6x EV of FY27/28E EBITDA. Maintain ‘Buy’ with revised TP of Rs1,298 (earlier INR1,295) valuing at same 7.5x EV of Mar’28E EBITDA.
