JTL Industries: Building Scale and Broadening Horizons in Q2 FY26

JTL Industries Limited, a prominent player in the steel tube manufacturing sector, has demonstrated a strong operational and financial rebound in the second quarter of Fiscal Year 2026. The company, known for its specialization in ERW Black Pipes, Pre-Galvanized and Galvanized Steel Pipes, and hollow structure sections, is now strategically diversifying into non-ferrous metals, marking a significant phase of growth and expansion. This quarter's performance reflects a robust recovery in margins, driven by an enhanced product mix and disciplined cost management.

For Q2 FY26, JTL Industries reported a consolidated revenue from operations of INR429.31 crore. While this represented a decline of 21.06% quarter-on-quarter, the profitability metrics showed a significant improvement. The consolidated EBITDA for the quarter stood at INR34.65 crore, a substantial 48.29% increase from Q1 FY26. This translated to an EBITDA per metric tonne surging by 83% to INR4,247. The Profit After Tax (PAT) also saw a healthy rise of 33.91% QoQ, reaching INR22.16 crore, with a PAT margin of 5.14%. These figures underscore a solid recovery in profitability, primarily attributed to a better value-added product contribution and improved cost efficiencies across domestic and export markets.

Strategic Expansion and Diversification

JTL Industries is not merely focusing on operational efficiency but is aggressively pursuing strategic expansion and diversification. A pivotal move in this direction is the recent NCLT approval for the acquisition of RCI Industries & Technologies Limited. This acquisition is a game-changer, providing JTL an immediate and well-structured entry into the high-potential copper and non-ferrous metals segment. This strategic pivot aims to reduce the company's dependence on the cyclical nature of steel prices and tap into high-growth sectors such as electric vehicles (EVs), renewable energy, and defence applications, including the supply of bullet shells and coin-related components.

Further solidifying its non-ferrous portfolio, JTL has launched Continuous Cast (CC) Copper as a new SKU. This initiative is designed to cater to sectors requiring high conductivity and precision, such as battery connectors and motor windings in EVs, and components for solar panels and wind turbines. The company plans to double its total monthly non-ferrous production to around 200 metric tonnes and ramp it up to 500 metric tonnes per month by the end of Q4 FY26.

On the steel pipes front, JTL is undertaking significant capacity expansions. The Mangaon plant's total installed capacity is being enhanced to 4,50,000 MTPA, with new lines for 3,00,000 MTPA of ARW/API-grade ERW pipes, 4,00,000 MTPA of GI COIL, and 6,00,000 MTPA of colour-coated coil capacity, expected to be commissioned by H1 FY27. Additionally, the Mandi plant is set to double its HR coil supply to 10,000 metric tons per month by the end of FY26. These expansions are crucial for increasing the company's value-added product mix and overall market share.

Operational Resilience and Future Outlook

Despite a volume drop in Q2 FY26 due to floods in Punjab, which impacted dispatches by approximately 23,000 tons, management expressed confidence in covering this volume in subsequent quarters. The company aims to achieve a total sales volume of 4.5 lakh to 5 lakh tons for FY26. Looking ahead, JTL projects sales volumes to reach 6 lakh to 6.5 lakh tons by FY27, 9 lakh tons by FY28, and cross 1 million tons by FY29. The EBITDA per ton for FY26 is guided at INR4,000, supported by an improving value-added product share, targeted to exceed 40%.

JTL's management has demonstrated transparency in acknowledging initial challenges, such as the DFT products being EBITDA negative in Q1, and has shown proactive course correction, with these products turning EBITDA positive in Q2. The company's debt-free status and the funding of the RCI acquisition through internal accruals and recently raised capital highlight a prudent financial strategy. With strong demand visibility, rising value-added contribution, and new capacities underway, JTL Industries is well-positioned for sustainable growth and margin improvement in the coming years, reinforcing its long-term strategy of innovation-driven and diversified growth.

A Vision for Sustainable Growth

JTL Industries is clearly executing a robust strategy focused on innovation, diversification, and capacity enhancement. The foray into non-ferrous metals, coupled with significant expansions in its core steel pipe business, positions the company to capitalize on emerging market trends and reduce its reliance on single-segment dynamics. The management's clear guidance and proactive approach to challenges instill confidence in its ability to deliver sustained value for stakeholders. As JTL continues to expand its footprint and product offerings, it is poised to strengthen its leadership in the building material solutions sector and beyond.