Jindal Steel shares jump over 2%; here is why the stock rallied post Q1 earnings

Its revenue from operations stood at ₹12,294 crore during the quarter under review, marking a 92.79% year-on-year (YoY) increase from ₹6,377 crore in the first quarter of FY25.

Jindal Steel said that its PAT increased due to higher EBITDA quarter-on-quarter (QoQ) on account of increase in steel prices and lower operating cost.

At an operational level, its EBITDA (earnings before interest, tax, depreciation, and amortisation) rose 5.4% YoY to ₹2,984 crore during the June quarter of FY26, as against ₹2,831 crore in the year-ago period.

“Total operating cost decreased by 15% due to a 10% quarter-on-quarter (QoQ) decline in sales volume. Further, benefits accrued from lower coking coal prices coupled with lower conversion cost due to reduced repairs, maintenance and stores/spares cost,” the company said in its investors presentation.

Crude steel production increased 2% YoY to 2.09 million tonnes (MT) in the reporting quarter, compared to 2.05 MT in Q4FY25.

The company’s sales dropped 9% YoY to 1.9 MT in Q1FY26, from 2.09 MT in the June quarter of FY25. Domestic sales were at 1.78 MT, down 9% YoY from 1.95 MT in the same period last fiscal year. Exports fell 8% YoY to 0.14 MT in the June FY25 quarter, against 0.15 MT in Q1FY25. Its liquidity position during the quarter was ₹4,189 crore.

On Wednesday, the stock opened at ₹1,004.10 per share on the National Stock Exchange. Last seen, shares of Jindal Steel were trading at ₹1,014, rising 1.55%.

JSPL said its sales volume declined 10% sequentially on account of replenishment of inventory after excessive drawdown in Q4FY25, a seasonally strong quarter.

The stock gained 3.02% over the previous week and 6.03% since the beginning of August. It soared 3.22% in the first quarter of FY25 and 7.28% on a year-to-date basis.

The stock touched its 52-week high of ₹1,074.90 apiece on the NSE on July 8, 2025, and it hit its 52-week low of ₹880 on the NSE on January 13, 2025.

Jindal Steel and Power has a total market capitalisation of ₹1.01 lakh crore, as of August 12, 2025, as per data on the NSE.