Jindal Steel Q3 Results Review: IDBI Capital Maintains 'Hold' On The Stock — Here's Why

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IDBI Capital Report

Jindal Steel and Power Ltd.’s Q3 FY25 revenue exceeded our estimates, while Ebitda/PAT was broadly in-line with estimates. Revenue increased 5% QoQ to Rs 117 billion, led by 3% increase in volumes.

Realizations increased 2% QoQ, driven by resilient TMT prices amid the active construction season, despite a sharp decline in HRC prices and a higher share of long products. Ebitda remained flat QoQ at Rs 21.8 billion, aided by forex gain of Rs 550 million.

Ebitda/tonne also fell by 3% QoQ to Rs 11,494 due to higher iron ore costs, attributed to lower production at Tensa mines.

JSPL incurred capex of Rs 28.5 billion, largely for the expansion at Angul, leading to an increase in net debt to Rs 135 billion in Q3 FY25, up from Rs 125 billion in Q2 FY25.

We have rolled over to FY27E estimates, valuing the stock at 6.5x EV/Ebitda for a target price of Rs 922, and maintain a Hold rating.

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