Archive · 31 Oct 2025
Jindal Steel Holds Advantage Over SAIL Despite Weak Q2
Even though both Jindal Steel (JSL) and SAIL had a bit of a tough time in the last few months, JSL seems to have some advantages over SAIL.
JSL is selling more of its special, higher-priced steel, which helps them get more money for each ton they sell.
They also spend less on raw materials, like iron ore, because they make some themselves.
This means JSL makes more profit per ton of steel sold than SAIL.
SAIL's profits were hurt by rising costs for materials like coal and other expenses.
JSL is also building new factories faster than SAIL, which means JSL can grow its sales more in the future.
While both companies' stocks have gone up this year, JSL's better profit margins and future growth potential give it an edge.
Both SAIL and JSL shares have risen in 2025, boosted by reduced imports and safeguard duties.
SAIL's Q2FY26 revenue increased due to higher volumes, but realization per tonne fell by 10%.
JSL's Q2FY26 revenue grew slightly, with a 3% increase in realization per tonne attributed to a higher mix of value-added products.
JSL has a significant advantage in EBITDA per tonne and a lower raw material cost percentage compared to SAIL.
JSL is undertaking significant capacity expansion, with advanced commissioning timelines, while SAIL faces capacity constraints for the next few years.
- Who
- Jindal Steel Ltd (JSL) and Steel Authority of India Ltd (SAIL)
- What
- Analysis comparing JSL's competitive advantages over SAIL, particularly in realization and cost structure, despite both companies reporting weaker September quarter results.
- When
- September quarter (Q2FY26)
- Where
- India
- Why
- JSL shows strength in higher realizations due to a greater proportion of value-added grades and a lower raw material-to-sales ratio, leading to a significantly higher EBITDA per tonne compared to SAIL. JSL is also further ahead in capacity expansion plans, while SAIL faces constraints that may limit volume growth.
Jindal Steel (JSL)
Steel Authority of India (SAIL)
Realization per Tonne
Jindal Steel (JSL)
Achieved higher realization (₹61,400 per tonne) due to a larger proportion (73%) of value-added grades.
Steel Authority of India (SAIL)
Experienced lower blended realization (₹54,400 per tonne), down 10% YoY, impacted by softer steel prices.
Raw Material Costs
Jindal Steel (JSL)
Marginal increase in raw material cost (3%) due to captive iron ore production, resulting in a raw material-to-sales ratio of 45%.
Steel Authority of India (SAIL)
Higher raw material cost increase (15%) driven by coking coal prices, leading to a raw material-to-sales ratio of 50%.
Profitability (EBITDA per Tonne)
Jindal Steel (JSL)
Reported higher EBITDA per tonne (₹10,027), despite one-off costs, due to better realizations and cost management.
Steel Authority of India (SAIL)
Reported significantly lower EBITDA per tonne (₹5,493), weighed down by higher costs and lower realizations.
Capacity Expansion & Future Growth
Jindal Steel (JSL)
Commissioning new facilities and guiding for 15-30% growth in H2FY26, with a healthy balance sheet for further capex.
Steel Authority of India (SAIL)
Facing capacity constraints, with initial expansion projects expected to come online only by FY28 and later, potentially limiting volume growth.
- Stock Performance (2025 YTD)
- SAIL: +21%, JSL: +14%
- SAIL Q2FY26 Revenue
- ₹26,700 crore (+8% YoY)
- SAIL Q2FY26 Realization
- Fell 10% YoY
- JSL Q2FY26 Revenue
- ₹11,686 crore (+4% YoY)
- JSL Q2FY26 Realization
- Increased ~3% YoY
- JSL Value-Added Grades
- 73% (up from 58% YoY)
- JSL EBITDA
- ₹1,900 crore (-12% adjusted for forex)
- SAIL EBITDA
- ₹2,530 crore (-13% YoY)
- JSL Net Debt-to-EBITDA
- 1.48x
- SAIL Capacity Expansion Target
- 35 MTPA by FY31