Equity Snap: Jindal Steel (JINDALST IN): Earnings miss on sharply higher interest costs

Research evidence excerpt

Equity Snap: Jindal Steel (JINDALST IN): Earnings miss on sharply higher interest costs

27 July 2026

Equity Snap: Jindal Steel Equities Metals & Mining

(JINDALST IN)

Earnings miss on sharply higher interest costs India

◆ While operating earnings were broadly in line, PAT was lower Pinakin Parekh*

on sharply higher interest costs SeniorHSBC SecuritiesAnalyst, Indiaand CapitalMetalsMarketsand Cement(India) Private

Limited

pinakin.parekh@hsbc.co.in

Jindal Steel (JINDALST IN, INR1035.80, Hold, TP INR1190.00) +91 22 40891549

(Priced as of 24 Jul 2026)

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

Lower volumes and higher costs offset by higher ASP/t: Jindal Steel reported not registered/ qualified pursuant to FINRA regulations

underlying 1Q EBITDA of INR26.6bn (-11% y/y, +1% q/q) vs consensus estimates of

INR25.1bn. Reported PAT stood at INR8.43bn (-44% y/y, -19% q/q) vs consensus

estimates of INR9.8bn as interest costs increased by 24% q/q and 85% y/y on recent

asset capitalization. Crude steel production was -9% lower q/q and sales were 12%

lower q/q at 2.3MT with the company highlighting a planned maintenance shutdown

during the quarter which impacted production volumes. Underlying EBITDA/t stood at

INR11,937/t, higher by 18% q/q, primarily driven by higher ASP/t which at

INR69,427/t was +12% q/q. Flats accounted for 53% of sales and exports 9%. ASP/t

increase was driven by higher steel prices and better product mix.

Multiple senior management changes: JSPL has appointed a new MD (Mr VR

Sharma, he previously was MD between 2019-2022), new Chief Operating Office (Mr

Rajiv Kumar, previous role CEO Vedanta Aluminium), new CFO (Mr Sandeep Modi,

previous role CFO Hindustan Zinc) and new Head HR (Mr Sukhjit Pasricha, previous

roles include CHRO IndiGo).