Jindal Steel reports sharp drop in quarterly profits

Indian steel producer Jindal Steel reported a decline in consolidated net profit after tax for the third quarter of the 2025/2026 financial year (October-December 2025) by almost 80% y/y – to 1.9 billion rupees ($20.67 million), according to Reuters.

This was due to low steel prices and rising raw material costs. In particular, the company’s cost of materials rose by 43%, increasing the company’s total expenses in the third quarter by 19.5% year-on-year to 126.38 billion rupees.

At the same time, total operating income for the period increased by approximately 11% year-on-year to 130.27 billion rupees.

According to analysts at HDFC Securities, steel prices in the country were low throughout October and November and only began to recover in December after India extended protective tariffs on steel imports, which led to an increase in domestic demand and a slowdown in supplies from abroad.

In terms of operations, the company reported an improvement in production volumes during the quarter. Steel output rose 25% quarter-on-quarter to 2.51 million tons, while sales of steel products increased 22% compared to the previous quarter to 2.28 million tons.

It should be recalled that in October last year, Jindal Steel commissioned a new basic oxygen furnace (BOF) with a capacity of 3 million tons per year at its plant in Anguli (Odisha state). This will increase the steel mill’s capacity from 6 million tons per year to 9 million tons per year. This step was taken after the commissioning of blast furnace No. 2 at the same plant at the end of September.