If you’ve been staring at the ticker for Jindal Steel and Power Limited share price lately, you’ve probably noticed something weird. The stock is hovering around ₹1,040 to ₹1,050, teasing its 52-week high of ₹1,098, yet the headlines are screaming about a "profit collapse." Honestly, it’s a classic case of the stock market looking at one thing while the balance sheet tells a totally different story.
Most retail investors see a 26% year-on-year drop in net profit—which actually happened in the September quarter—and they freak out. They sell. But the big players? They’re watching the Angul plant in Odisha like hawks.
The Angul Factor: Why the Jindal Steel and Power Limited Share Price Isn't Tanking
Why is the stock staying so resilient when profits are technically "down"? It’s basically because Jindal Steel (JSPL) is in the middle of a massive growth spurt that most companies couldn't pull off without drowning in debt.
Right now, the company has successfully bumped its steelmaking capacity at Angul to 12.6 million tonnes per annum (MTPA). That’s not a small number. They just commissioned India’s second-largest blast furnace there. When you build stuff this big, your "interest expenses" and "depreciation" eat your current profits for breakfast. But the market knows that once these machines are fully humming, the cash flow is going to be ridiculous.
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- The New Capacity: They’re aiming for 15.6 MTPA by the end of 2026.
- The Efficiency Play: A new 3 MTPA Basic Oxygen Furnace (BOF-II) is already live.
- The Secret Weapon: A slurry pipeline from Barbil to Angul is nearly 90% finished.
That pipeline is a big deal. Instead of paying a fortune to move iron ore by truck or rail, they’ll literally pump it through a pipe. It's a massive cost-saver that isn't fully reflected in the Jindal Steel and Power Limited share price just yet.
What’s Really Happening with the Margins?
Let’s be real: the steel industry is kinda messy right now. China is dumping cheap steel into the global market because their own property sector is a wreck. This keeps a lid on how much JSPL can charge for a ton of steel.
ICRA and other analysts are projecting that even though demand in India is growing at about 8% to 9%, operating margins are going to stay flat around 12.5%. It’s a bit of a "volume over value" game. JSPL is betting that by making more steel more efficiently, they can beat the flat prices.
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They’ve shifted their product mix too. About 73% of what they sell now is "value-added" products. Think specialized rails for Indian Railways or high-grade steel for construction. These items have much better margins than basic steel slabs. If you’re holding the stock, this is the internal shift you should care about.
Why Analysts are Still Shouting "Buy"
You’d think a company with declining quarterly profits would get a "Sell" rating, right? Not here. Motilal Oswal and ICICI Securities have been putting out price targets ranging from ₹1,180 to as high as ₹1,400.
The logic? It’s all about the "EV/EBITDA" multiple. Basically, they think the company is undervalued because the market is ignoring the "backward integration." JSPL isn't just buying iron ore; they’re winning bids for their own mines, like the Roida-I block. Being your own supplier is the ultimate hedge against inflation.
- Debt is under control: Consolidated net debt is sitting around ₹14,156 crores. For a company this size, that's actually quite lean.
- Infrastructure tailwinds: The Indian government is obsessed with building highways and bridges (Bharatmala project). That requires millions of tons of steel.
- New Leadership: Gautam Malhotra took over as CEO in late 2025. New blood often means a tighter focus on operational "leaks" and faster project execution.
The Risks Nobody Likes to Talk About
It’s not all sunshine and molten metal. There are some genuine headaches.
First, the EU is rolling out something called the Carbon Border Adjustment Mechanism (CBAM) in 2026. It’s basically a "carbon tax" on exports. If JSPL wants to keep selling to Europe, they have to spend a fortune on "green steel" tech. They’re already looking into hydrogen-based DRI pilots, but that tech is expensive and still kinda experimental.
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Second, raw material costs are a moving target. While JSPL has captive mines, they still have to import coking coal. If the Australian coal prices spike, or if the Indian Rupee weakens against the Dollar, those "flat margins" could easily turn into "shrinking margins."
How to Play the Current Price Action
If you’re looking at the Jindal Steel and Power Limited share price today, you have to decide if you’re a trader or an owner.
Traders are likely going to see resistance at the ₹1,100 mark. It’s a psychological barrier. The stock has tested it multiple times and pulled back. But for long-term "owners," the story is about the transition from a 9.6 MTPA company to a 15.6 MTPA giant.
Actionable Insights for Investors
- Watch the Volumes: Don't just look at the profit. Look at the sales volume. If they are hitting 2.5 million tonnes per quarter, the expansion is working.
- Monitor the Slurry Pipeline: The moment that Barbil-to-Angul pipeline is commissioned (expected H2 2026), expect a bump in operating EBITDA per tonne.
- China Watch: If China announces a massive stimulus or cuts their exports, Indian steel stocks—including JSPL—will likely go on a tear.
- Check the Dividend: JSPL isn't a high-yield play (0.19% yield), so don't buy it for the "rent." Buy it for the "property value" (capital appreciation).
The bottom line is that JSPL is currently a massive construction site. And you know what they say: you don't judge a house while the scaffolding is still up. The real test for the Jindal Steel and Power Limited share price will be the late 2026 earnings calls, when the "Phase II" expansions at Angul start contributing to the bottom line without the heavy weight of new construction costs.
To stay ahead, keep an eye on the quarterly production updates rather than just the PAT (Profit After Tax) numbers. The production growth is the lead indicator; the profit is the lagging one. If the furnaces stay hot and the debt stays low, the path to ₹1,200 looks more like a "when" than an "if."