JTL Industries Ltd (NSE: JTLIND; BSE: 534600) Shares of JTL Industries Ltd (JTLIND) closed lower on the National Stock Exchange in the latest trading session as the market weighed sequential margin expansion against broader sectoral pressures. The stock ended at ₹75.96, representing an intraday decline of 1.38%, following the company’s third-quarter financial disclosure on Saturday.
Operational performance, measured by EBITDA per tonne, rose to ₹4,270, a significant recovery from the ₹4,003 reported in the prior-year quarter. This metric highlights the company’s ability to extract higher margins per unit despite fluctuations in steel prices, largely driven by an increasing contribution from the value-added products segment, which now accounts for a larger share of the total sales mix.
Raw Material Dynamics and Pricing
Operating margins rebounded to 8.2%, up from 4.3% in the preceding quarter. Management attributed this recovery to stabilized hot-rolled (HR) coil costs, which constitute approximately 84.6% of total revenue. Domestic HR coil prices remained competitive against imports, trading near ₹47,200 per tonne. The company achieved an EBITDA per tonne of ₹4,270, a rise from the ₹4,003 reported in the previous year’s third quarter, reflecting improved pricing discipline and a shift toward value-added products.
Regulatory and Export Environment
The domestic steel pipe industry continues to operate under a safeguard duty regime on Chinese imports. A 12% duty implemented in early 2025 effectively raised the landed cost of Chinese HRC to approximately ₹55,465 per tonne, providing a pricing floor for domestic producers like JTL. Exports contributed approximately 12% to the total revenue mix. Management noted that while global logistics costs remained a factor, the anti-dumping measures have restored pricing discipline in the domestic market, insulating margins from sudden import shocks.
Management Q&A and Outlook
During the earnings call, management addressed several operational and strategic queries:
- Capacity Expansion: The company confirmed its trajectory toward a total capacity of 2.25 million MTPA by FY27. The expansion at the Mangaon facility is progressing in phases, with incremental additions expected every six months.
- Product Mix Transition: In response to questions on competitive intensity, the company stated it is moving its Direct Forming Technology (DFT) products from commercial-grade to value-added status to capture higher realizations.
- Volume Recovery: Management clarified that the third-quarter volume growth followed a recovery from flood-related disruptions in Punjab during the first half of the fiscal year, which had resulted in a loss of approximately 20,000 MT in sales.
- Inventory Strategy: Management stated that inventory levels are being managed to hedge against potential volatility in steel prices in the upcoming fiscal year, with a current inventory build of ₹4.54 crore recorded in the quarter.
The company’s nine-month sales volume reached 2,72,639 MT, the highest in its history for the April–December period.