Jindal Steel & Power’s Q3 Performance: Profit Slips, Revenue Marginally Up
Jindal Steel & Power Ltd, one of India’s leading steel manufacturers, has announced its Q3 2025 financial results, revealing a significant 51% drop in net profit year-on-year. The company posted a net profit of ₹951 crore for the quarter ending December 31, 2025, compared to ₹1,942 crore in the same quarter last year. This decline occurred despite a slight increase in revenue and an uptick in both production and sales during the period.
While Jindal Steel managed to improve its steel production and sales volume, the sharp decline in profits was mainly attributed to the rising costs of iron ore and higher raw material prices, which significantly squeezed margins.
Revenue & EBITDA Performance
The consolidated revenue for the quarter stood at approximately ₹11,751 crore, marking a slight increase compared to the same period last year. However, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) experienced a notable dip, falling nearly 24% year-on-year to ₹2,133 crore. As a result, EBITDA per metric ton decreased to ₹11,209, reflecting the pressure from elevated iron ore costs.
Despite the overall decline in earnings, the management remains optimistic about a recovery in the coming months, as they forecast moderating iron ore prices in the next quarter. This improvement in raw material costs could help restore profitability for the company.
Steel Production and Sales Volumes
In terms of steel production, JSPL achieved a growth of 2.5% year-on-year, with a total of 1.99 million metric tons of steel produced during the quarter. Similarly, sales increased by 5% year-on-year, reaching 1.90 million metric tons. This growth reflects the company’s strong market position and its focus on expanding its sales base in both domestic and international markets.
During the quarter, JSPL's long product sales accounted for 59% of its total sales volume, showcasing the company’s successful strategy of consolidating its position as a major supplier of long products, especially for infrastructure projects.
Market Dynamics and Steel Prices
JSPL’s performance was also influenced by global market conditions. The company highlighted that India continues to be a net importer of steel, which has impacted pricing and realizations for domestic steel manufacturers. In particular, flat steel products witnessed a price dip, while long steel products, such as TMT bars (used in infrastructure projects), performed relatively well in terms of pricing.
JSPL’s focus on long products has positioned it advantageously, especially as the company is a key supplier of rails to Indian Railways and for metro projects across the country. The demand for long products, especially in the construction and infrastructure sectors, has helped mitigate some of the pressure from falling flat steel prices.
Strategic Shifts and Focus Areas
JSPL’s strategy remains focused on expanding its long product portfolio, which has become a crucial part of its operations. The company’s management emphasized the strong performance in this segment, driven by ongoing infrastructure development and demand for products like TMT bars and rails. Additionally, the company plans to continue its focus on improving its cost structure and operational efficiency to better weather fluctuations in raw material prices.
JSPL’s emphasis on sustainability and efficiency is also aligned with broader industry trends, as the company continues to make strides in adopting newer technologies and improving production processes to remain competitive in a challenging market environment.
