Summary
JTL Industries Limited - Q3 FY26 Earnings Call Summary Saturday, January 24, 2026 12:00 PM
Event Participants
Executives 2 Naveen Kumar Laroiya (CFO), Pranav Singla (Executive Director)
Analysts 7 Aditya (Axis Securities), Aryan (Inverge Research), Diplesh (Credent Asset Management), Harsh (Valentine Advisors), Lokesh (SMIFS Institutional Equities), Pallav (Antique Stock Broking), Saket Kapoor (Kapoor & Company)
Financials & KPIs (Consolidated)
| Metric | Reported | Commentary |
|---|---|---|
| Sales Volume | 90,429 MT | +10.08% QoQ, +11% YoY; Growth driven by dealer restocking and increased export demand. |
| Revenue | ₹470.51 crores | +9.6% QoQ; Catching up with previous shortfalls, down only 0.14% YoY for 9M FY26. |
| EBITDA | ₹42.26 crores | +15.3% QoQ; Margin recovery led by DFT segment stabilization and operational efficiency. |
| PBT | ₹33.05 crores | +8% QoQ; Improved profitability despite higher finance costs from working capital utilization. |
| Standalone EBITDA/MT | ₹4,839 | +1.3% QoQ; Recovering from Q1 lows as DFT product acceptance improves. |
| Exports | 9,591 MT | +11% YoY; Management targeting doubling of export volumes in FY27. |
| Secondary Sales Mix | 35% | 35% of total sales; Backward integration saves ₹0.75 - ₹1.00 per kg in production costs. |
| Finance Cost | ~₹3 crores | +~130% vs normal run rate; Higher CC limit utilization for inventory and RCI acquisition. |
Geographic & Segment Commentary
- Mangaon & Maharashtra: Management expects Mangaon to be the primary volume driver for the 6.5 lakh MT FY27 target. New collaborative products, including GP pipes and wider width coils (starting Q1 FY27), are expected to add 25,000-30,000 MT per quarter.
- RCI Industries (Subsidiary): Acquired entity specializing in copper foils and coils for EV and Defense (bullet shells). Targeted to contribute 500 MT per month by H2 FY27 with expected EBITDA margins of 10%.
- Direct-to-Fabrication (DFT) Segment: Currently achieving EBITDA of ₹4,500-₹5,000/MT with 75% market empanelment completed. Management targets ₹6,500-₹7,500/MT as empanelment reaches 100% and synergies materialize.
Company-Specific & Strategic Commentary
- Capacity Expansion: Total capacity is scaling toward 1 million MT. The wider color-coated line starts production in Q1 FY27, and an API grade mill (₹75 crore CAPEX) is planned for completion within FY27.
- Product Value-Addition: Transitioning toward a 35-40% value-added mix in FY27. New products include GST pipes, color-coated coils, and specialized copper foils (0.04 mm thickness) for EV gaskets.
- Market Positioning: JTL emphasizes its “Primary + Secondary” dual-offering strategy. It remains the only player in Maharashtra with specific galvanizing capabilities, providing a competitive moat against peers.
- Capital Structure: Promoters forfeited outstanding warrants; existing money moved to capital reserves. Management intends to remain long-term debt-free, using internal accruals and promoter infusions for CAPEX.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Sales Volume | 4,00,000 MT (FY26) | Already at 40k MT run rate for Q4; requires 1.3 lakh MT in Q4 to hit target. |
| Sales Volume | 6,50,000 MT (FY27) | Driven by new products (GP pipes, color-coated) and Mangaon expansion. |
| Sales Volume | 9,00,000 MT (FY28) | Backed by full integration of CR, GL, and API grade mill operations. |
| EBITDA/MT | ₹4,500 - ₹5,000 (FY27) | Expected increase from current ₹4,000 levels due to stabilization of DFT and color-coated lines. |
| Export Volume | 60,000 - 65,000 MT (FY27) | Aiming to maintain exports at 10% of the expanded total volume. |
Risks & Constraints
| Risk | Context |
|---|---|
| Competitive Intensity | Peers like APL Apollo are expanding aggressively. JTL mitigates this via geographic focus in Maharashtra and a niche secondary market presence. |
| Raw Material Volatility | HRC prices saw an uptick in Dec/Jan. While this aids restocking demand, it requires careful inventory management and potential hedging for the new copper segment. |
| Government Spending | Delays in Jal Jeevan Mission or budget tenders can impact volumes. Current exposure is limited to HP, J&K, and Uttarakhand with manageable receivable cycles (2.5-3 months). |
Q&A Highlights
Volume and Growth Trajectory
- Question: How will you bridge the gap to reach 4 lakh MT this year given the 9M run rate? (Aditya)
- Answer: We have already achieved 40,000 MT in the current quarter (Jan). We are 100% sure of crossing 2.5 lakh MT in 10 months and hitting the 4 lakh MT annual target (Pranav Singla).
DFT Margins
- Question: Peers get ₹8,000/MT in DFT; when will JTL reach similar levels? (Diplesh)
- Answer: We are currently at ₹4,500-₹5,000/MT. As we complete the remaining 25% of market empanelment, we target ₹6,500-₹7,500/MT by Q1/Q2 of next year (Pranav Singla).
RCI Industries Integration
- Question: What are the key products and margins for the copper subsidiary? (Saket Kapoor)
- Answer: We produce copper foils down to 0.04 mm thickness for EV gaskets and defense bullet shells. We target 10% EBITDA margins by H2 FY27 (Pranav Singla).
Secondary vs. Primary Mix
- Question: What is the EBITDA difference between primary and secondary pipes? (Aryan)
- Answer: The EBITDA per ton is similar, but backward integration in secondary operations saves us an additional ₹0.75 to ₹1.00 per kg (Pranav Singla).
Key Takeaway
JTL Industries demonstrated sequential recovery in Q3 FY26, with consolidated revenue rising 9.6% QoQ to ₹470.51 crores and volumes reaching 90,429 MT. Despite a sluggish start to the fiscal year due to DFT stabilization and lower government spending, management reaffirmed aggressive volume targets of 4 lakh MT for FY26 and 6.5 lakh MT for FY27. Strategic focus remains on high-margin segments, including the ramp-up of the Mangaon facility, the launch of color-coated and API grade pipes, and the integration of RCI Industries into EV and defense supply chains. While finance costs spiked to ₹3 crores due to working capital needs, the company intends to remain long-term debt-free through internal accruals. The transition toward a 40% value-added product mix is expected to drive EBITDA/MT toward the ₹5,000 range in FY27. Management anticipates significant volume tailwinds from the upcoming Union Budget and renewed government tenders post-elections.
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