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Jindal Stainless (JSL)’s Q2FY26 EBITDA was 5% better than our estimates at INR 13.9bn (+17%/+6% YoY/QoQ) driven by better sales volumes.

Shyam Metalics & Energy’s (SMEL) Q2FY26 EBITDA of INR 5.4bn was 6%/4% below our/consensus’ estimates. EBITDA surged 32.7% YoY, largely driven by strong growth in steel/semi sales volumes of 12%/44% to 544Kte/370Kte.

Jindal Stainless’ (JDSL) revenue for 2QFY26 came in line with our estimates at INR109b, up 11% YoY and 7% QoQ. The growth was primarily led by healthy sales volume of 648KT, which recorded 15% YoY and 4% QoQ growth in 2QFY26.

We maintain our HOLD rating on the stock.

Having commenced operations at its 3m tonne steel melting shop (SMS), Jindal Steel is on track to expand it by a further 3m tonnes, taking total installed capacity to 15.6m.

JSL's Q2FY26 operating performance was in-line with our expectations. Revenue declined 5% QoQ to Rs117bn, primarily due to a 3% decline in NSR (owing to weak steel prices) and a 2% QoQ drop in volumes, mainly impacted by planned shutdowns. Despite volume decline, management maintained its FY26 guidance and expects steelmaking capacity to reach 15.6 mtpa by FY26. Consequently, EBITDA declined 31% QoQ to Rs21bn, with EBITDA/tonne decreasing by 30% QoQ to Rs11,129, weighed down by planned maintenance shutdown and weak realizations. JSL incurred capex of Rs31bn in H1FY26. Net debt decreased by...

About the stock: Jindal Steel (JSL) is one of India's leading steel producers, having Higher volumes and domestic steel price stability to support profitability: In Q2FY26, JSL's EBITDA/ton fell to ~11k (vs 15.8k in Q1FY26), mainly due to higher operating costs of ~250 crore from planned maintenance and metallic purchases. While domestic steel prices are currently down 23% QoQ, management expects an improvement in NovDec'25. With higher volumes and potential price recovery, margins are likely to sustain, with EBITDA/ton projected at 12.9k/14k for...

Consolidated EBITDA grew 30.9% YoY to Rs. 7,115cr, with EBITDA margin expanding 210bps to 15.8%, on the back of a favourable product mix and reduced operating costs due to improved operational efficiencies. Profit after tax increased more than fourfold to Rs. 1,646cr, aided by topline growth and an 64% YoY increase in other operating income. JSW Steel reported a strong performance in the quarter despite global uncertainties and a prolonged monsoon. The company is optimistic about a strong performance in the second half of this financial year, driven by rising steel prices and production. JSW has ramped up its production capacity, which is expected to support growth. The outlook for India's steel consumption remains robust, driven by supportive...

SAIL's Q2FY26 performance was above our expectations. Revenue increased by 3% QoQ to Rs267 bn, driven by an 8% QoQ increase in volumes. This includes 0.30 mnT traded volumes from NMDC steel, contributing Rs 15bn to the topline. NSR decreased by 5% QoQ to Rs54,387/t, impacted by a fall in steel prices, though Rs 11.4bn was earned from sale of scraps and byproducts. Consequently, EBITDA declined 9% QoQ to 25bn, with EBITDA/tonne declining by 15% QoQ to Rs 5,114/t, primarily due to loss in volumes owing to repair works. Management indicated IISCO plant expansion of 4.5mnT will begin in FY27, with an estimated...

Jindal Steel (JINDALST)’s revenue for 2QFY26 stood at INR117b (+4% YoY vs. our estimate of INR107b), declining 5% QoQ due to muted realization.

Tata Steel (TATA) is aggressively expanding its capacity in India to capitalize on rising domestic demand, targeting an increase from 26.5mtpa in FY25 to 40mtpa by FY30.

JSW Steel's Q2FY26 performance was broadly in line with our estimates. Revenue increased by 5% QoQ, driven by 10% volume growth as Dolvi, JVML and BPSL capacities ramped up. NSR decreased 4% QoQ, owing to a decline in steel prices. EBITDA decreased by 6% QoQ to Rs71bn, while EBITDA per tonne fell by 14% QoQ to Rs 9,693/t, driven by lower realization, partly offset by $6 savings in coking coal costs, savings in power costs and higher volumes. Management expects a recovery in steel prices in Nov-Dec'25 as they trade below the import price parity. JSW has announced two section mills to produce...

Jindal Steel (JINDALST) has successfully commissioned a new 3mtpa of crude steel capacity at its Angul plant, expanding the plant’s total steelmaking capacity to 9mtpa.

Tata Steel (TATA) is pursuing an aggressive capacity expansion strategy in India to capitalize on the rising domestic demand.

Controlled leverage with improving return ratios insight: JSL has consistently maintained a healthy balance sheet, with Net Debt to EBITDA below 1x, despite executing a significant capex of ~5,400 crore. With the commissioning of new capacities, it is expected to generate annual CFO >4,000 crore, enabling debt reduction in the coming years. Consequently,...

JSP reported adjusted EBITDA of Rs29.8bn (+14.0% vs Emkay estimate; +15.6% vs consensus; +20.3% QoQ).The sequential improvement was mainly led by a reduction in coking coal cost by USD11/t and QoQ better realization, which was partially offset by a 10.8% sequential decline in sales volume (owing to early onset of monsoons and intentional rebuilding of inventories).

Jindal Steel & Power (JSP) delivered strong cons operating performance in Q1FY26 despite lower volumes. Volumes declined 9% YoY affected by early monsoon. Avg. NSR rose 4.5% QoQ, driven by higher long & flats product prices and increase in value added products. Lower coking coal and PCI benefited EBITDA/t improving to Rs15,680 (ex-fx gains). Commissioning of BF-2 at Angul is in the final stages and hot metal production is expected to commence this month (delayed again) and BOF-2 is also nearing completion. Mgmt. reiterated its earlier FY26 sales volume guidance of 8.59mt....

Revenue stood at INR102b (+8% YoY and flat QoQ), in line with our estimate. The sales volume came in line with our est. at 626KT (+8% YoY and -3% QoQ).

Tata Steel's Q1FY26 performance was above our expectations on all fronts. Revenue declined 5% QoQ to Rs532bn, impacted by a 5% QoQ drop in volumes due to maintenance shutdowns at Jamshedpur and NINL. However, this was partially cushioned by a 11% QoQ increase in realizations. Consolidated EBITDA increased by 13% QoQ to Rs74bn, with EBITDA/t improving 32% QoQ to Rs10,432. The UK operations significantly reduced their EBITDA loss to Rs7,772/t in Q1FY26 from Rs13,758/t in Q4FY25 while Netherland business reported EBITDA of Rs4,080/t up from Rs712/t in Q4FY25, supported by global cost...

SAIL’s Q1FY26 reported EBITDA, at INR 27.6bn, was c.16% short of consensus estimates. This stemmed from higher other expenses on account of an INR 9.5bn one-time negative impact on inventory valuation.