JTL Industries, one of India’s fastest-growing steel tube makers, saw its stock drop 5% after it posted a 47% year-on-year fall in Q1 profit, landing at ₹163 crore. This decline came even though the company sold more products this quarter.
Let’s break it down.
Sales Are Up, But Margins Take a Hit
In Q1 FY26, JTL Industries’ sales volume jumped 26.5% to 1,08,406 metric tonnes. This included 22,039 MT of value-added products, making up 20% of the total mix. Demand from key markets was strong.
But despite higher volumes, profits sank. Why?
The company’s profit before tax dropped 46.24% to ₹218.94 crore. Meanwhile, EBITDA fell 41.56% to ₹233.7 crore from ₹399.9 crore in Q1 FY25. The EBITDA margin slipped to 4.3%, down from 7.8% last year.
Clearly, costs and pricing pressure hurt the bottom line.
Expansion Plans Still in Full Swing
Even as profits fell, JTL Industries is betting big on the future. The company has major capacity additions lined up:
- Mangaon plant currently has 4.5 lakh MTPA capacity, with 2.5 lakh MTPA using Direct Forming Technology (DFT).
- Another 3 lakh MTPA capacity for ARW/API-grade ERW pipes will be ready within a year.
- 4 lakh MTPA GI coil capacity will be added by Q3 FY26.
- A new 6 lakh MTPA color-coated coil facility is coming up by H1 FY27.
These moves aim to boost its pre-galvanized and color-coated product lines.
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Demand Outlook Still Strong
India’s push for infrastructure is helping steel tube makers. Sectors like construction, oil and gas, water supply, and agriculture are driving demand.
The warehousing sector alone is set to boom, with space expected to touch 1.2 billion sq ft by 2027.
That’s a big plus for JTL Industries, which supplies GI pipes, black pipes, hollow sections, and solar structures for infrastructure needs.
Yes, the Q1 results disappointed. But JTL Industries isn’t backing down. Its aggressive expansion shows it’s preparing for bigger growth.
The question is: can it fix the profit margins in time?
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