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IDBI Capital Report
Jindal Steel and Power Ltd.'s Q4 FY26 performance was broadly in line with the brokerage's expectations. Revenue increased by 24% QoQ to Rs 16,200 crore, driven by 15% increase in sales volume due to new capacity ramp-up. This was further aided by an 8% increase in NSR on account of higher steel prices.
Ebitda margins expanded by 558 bps QoQ to 18.1%. Consequently, Ebitda rose by 80% QoQ to Rs 2,900 crore, aided by absence of plant startup costs and improved operational efficiencies. Ebitda/tonne increased by 57% QoQ to Rs 11,218, driven by higher NSR despite a $20/t increase in coking coal costs and lower contribution from VASP.
Net debt increased by Rs 600 crore to Rs 16,000 crore. Management aims to achieve sales volume of 10.5-11.0 mnT in FY27.
The brokerage value the stock at an EV/Ebitda multiple of 8x FY28E Ebitda, deriving a target price of Rs 1,303 and change rating from Buy to Hold.
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