Jindal Supreme’s FY25 profit jump relied on a ₹16.60 crore gain

Jindal Supreme’s Fiscal 2025 profit before tax rose 114.87% to Rs 32.39 crore, but a Rs 16.60 crore gain on the disposal of a building accounted for about 96% of the Rs 17.32 crore increase from Fiscal 2024. The reported profit jump therefore depended substantially on a one-time property transaction.

Why did Jindal Supreme’s FY25 profit jump rely on a building sale?

Jindal Supreme recorded Rs 18.34 crore of other income in Fiscal 2025, compared with Rs 5.44 crore in Fiscal 2024, principally because it sold buildings for Rs 17.22 crore. The buildings’ written-down value, or WDV, was Rs 0.62 crore, resulting in a Rs 16.60 crore disposal gain. WDV is the carrying value of an asset after accumulated depreciation.

Profit before tax increased to Rs 32.39 crore in Fiscal 2025 from Rs 15.07 crore in Fiscal 2024, a gain of Rs 17.32 crore. The Rs 16.60 crore building-sale gain was therefore about 96% of that increase. Removing that gain from Fiscal 2025 reported profit before tax produces Rs 15.79 crore, only Rs 0.71 crore above Fiscal 2024; this is an analytical calculation rather than a company-reported normalised profit measure.

Jindal Supreme’s accounting policy states that gains and losses on disposal of property, plant and equipment are recognised in the statement of profit and loss in the year of disposal. Its policy on exceptional items also says material income or expense may be separately disclosed when necessary to explain financial performance. The Fiscal 2025 income statement reported the building gain within other income, which represented 3.03% of total revenue of Rs 604.74 crore.

Did Jindal Supreme’s underlying operating performance improve in FY25?

Jindal Supreme reported higher earnings before interest, tax, depreciation and amortisation, or EBITDA, excluding other income in Fiscal 2025, despite lower operating revenue. EBITDA excluding other income increased to Rs 25.92 crore from Rs 21.11 crore in Fiscal 2024, while the company’s stated EBITDA margin excluding other income rose to 4.42% from 3.27%.

The principal disclosed cost change was in materials. Cost of materials consumed fell 11.43% to Rs 520.26 crore in Fiscal 2025 from Rs 587.42 crore in Fiscal 2024, reducing to 86.03% of total revenue from 90.25%. Jindal Supreme attributed this movement to cooling steel prices and lower production volumes: total production declined 2.24%, or 2,271 metric tonnes, and raw-material purchases fell 9.36% to Rs 534.60 crore.

Operating revenue nevertheless declined Rs 59.04 crore to Rs 586.40 crore in Fiscal 2025. Black-pipe sales fell 14.48% to Rs 271.51 crore and galvanised-pipe sales fell 27.22% to Rs 209.63 crore, while total steel-product volume decreased 1.98% to 96,400 metric tonnes. Average realisation per metric tonne declined 7.01% for black pipes and 4.63% for galvanised pipes; metal beam crash barriers, first produced and sold from April 2024, added Rs 62.31 crore of revenue.

Cost reductions were offset in part by other expense lines. Other expenses increased 18.83% to Rs 36.21 crore in Fiscal 2025 from Rs 30.47 crore in Fiscal 2024, including Rs 13.73 crore for stores and spares, Rs 9.21 crore for carriage inward and Rs 7.47 crore for freight and forwarding. Finance costs rose 13.31% to Rs 8.73 crore because of higher long-term borrowings and utilisation of working-capital limits.

Why did Jindal Supreme’s profit fall in FY26 despite higher operating revenue?

Jindal Supreme’s profit after tax declined 7.15% to Rs 22.53 crore in Fiscal 2026 even as revenue from operations rose 15.18% to Rs 675.39 crore. The year-on-year comparison includes the absence of the previous year’s building-sale gain: other income fell 96.98% to Rs 0.55 crore in Fiscal 2026 from Rs 18.34 crore in Fiscal 2025.

Profit before tax fell 6.91% to Rs 30.15 crore in Fiscal 2026, and the profit-before-tax margin declined to 4.46% from 5.36%. Total expenses rose 12.83% to Rs 645.79 crore, with other expenses increasing 43.29% to Rs 51.88 crore. Materials consumed increased 11.21% to Rs 578.60 crore as total production increased 6.53%, or 6,465 metric tonnes.

Jindal Supreme’s Fiscal 2026 sales mix shifted toward metal beam crash barriers. Revenue from those barriers rose 88.91% to Rs 117.70 crore from Rs 62.31 crore, while total product volume increased 4.88% to 101,100 metric tonnes. Galvanised-pipe sales still declined 14.41% to Rs 179.42 crore, and average realisation per metric tonne fell 1.01% for black pipes and 2.60% for galvanised pipes.

What did Jindal Supreme use the building-sale proceeds for?

Jindal Supreme said it sold the buildings to fund capital expenditure on metal beam crash barriers and galvanised iron, or GI, tubular poles, meet working-capital requirements through internal accruals, and repay a portion of short-term borrowings. The Fiscal 2025 cash-flow statement recorded Rs 17.22 crore in proceeds from sale of property, plant and equipment, helping generate Rs 11.89 crore of net cash from investing activities.

The transaction coincided with a lower debt-equity ratio, which compares borrowings with shareholders’ equity. Jindal Supreme reported a debt-equity ratio of 1.28 times in Fiscal 2025, down from 2.09 times in Fiscal 2024. Fiscal 2024 had Rs 43.05 crore of net cash used in investing activities, including Rs 52.05 crore of property, plant and equipment purchases and Rs 29.97 crore of right-of-use asset additions.

The cash-flow benefit did not recur in Fiscal 2026. Jindal Supreme reported Rs 9.86 crore of net cash used in investing activities and Rs 5.69 crore of net cash used in operating activities in Fiscal 2026, compared with Rs 5.74 crore of operating cash generated in Fiscal 2025. The company attributed the Fiscal 2026 operating cash outflow to changes in current assets, despite reporting Rs 41.43 crore of operating profit before working-capital changes.

Conclusion

Jindal Supreme’s Fiscal 2025 earnings combined an improvement in its disclosed operating measure with a material, non-recurring property disposal gain. Lower material costs increased EBITDA excluding other income to Rs 25.92 crore, but the Rs 16.60 crore building-sale gain accounted for nearly all of the Rs 17.32 crore increase in reported profit before tax.

The disclosed plan to deploy sale proceeds toward metal beam crash barriers, GI tubular poles, working capital and short-term borrowings is the next item to monitor. Fiscal 2026 showed barrier revenue rising to Rs 117.70 crore and operating revenue increasing 15.18%, while profit after tax fell to Rs 22.53 crore as other income normalised and other expenses reached Rs 51.88 crore.