JINDALSTEL

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). JSP is set to commission its new BF/BOF in Q2FY26. The management maintained its guidance; it expects Q2 inventory liquidation to boost cash flow, lower debt, and improve leverage, aided by a USD5/t drop in coking coal cost. EBITDA estimates for FY26-28 by 2-3%, driven by anticipated cost/t improvements from developments in captive iron ore mining and increased visibility in ongoing project execution.