Jindal Steel (JINDALST IN) – Q2FY27 Result Update – Capacity ramp-up to support sustained EBITDA growth – BUY
Published on 24 Oct 2026
Mgmt. maintained its FY27 sales volume guidance as Angul ramp-up is expected to drive volumes in H2FY27. Focus remains on improving capacity utilisation, increasing VASP share and reducing costs through captive raw materials, coal gas substitution and slurry pipeline-led savings (INR700/t). Higher coking coal costs in Q3FY27 should be partly offset by higher volumes, better realisations and cost-saving initiatives. We remain positive on Jindal Steel’s growth prospects and near-term profitability, supported by capacity ramp-up and improving operating leverage. We tweak our FY28/29E EBITDA estimates by 1% each on higher coking coal and expect EBITDA CAGR of 25% over FY26-29E. At CMP, the stock is trading at 6.3x/5.8x EV of FY28/29E EBITDA. Maintain ‘BUY’ with revised TP of Rs1,245 (earlier INR1,265) valuing at same 7.5x EV of Sep’28E EBITDA.
