JTL Industries FY26: Record volumes, export momentum, and a capex-heavy balance sheet

JTL Industries closed FY26 with its highest-ever annual revenue and sales volumes, helped by stronger utilization across facilities and an improving mix of value-added products. Revenue from operations for FY26 stood at INR 2,136.4 crores, EBITDA excluding other income was INR 154.4 crores, and profit after tax was INR 103.1 crores.

The March quarter was even more eventful operationally. Q4 FY26 revenue from operations grew 47.5% year-on-year to INR 692.7 crores, with EBITDA of INR 57.7 crores and PAT of INR 37.9 crores. The company highlighted Q4 as its highest-ever quarterly sales volume at 1,23,262 MT, with exports rising to 11,785 MT.

Behind these numbers is a very clear narrative. JTL is trying to move from being a commoditized steel tubes player to a more differentiated structural steel solutions platform, driven by DFT structural steel pipes, galvanized products, and engineered solutions. The same strategy is tied to exports, where management indicated that export shipments are largely value-added products.

FY26 performance: growth with improving operating profitability

On the consolidated income statement, FY26 showed 11.5% growth in revenue from operations and 25.6% growth in EBITDA versus FY25. EBITDA margin improved to 7.2% from 6.4% last year. Profit after tax grew 4.3% to INR 103.1 crores, even as PAT margin slipped to 4.8% from 5.2%.

A useful operating lens is per-ton profitability. FY26 operational revenue per ton was INR 53,963 and EBITDA per ton was INR 3,900. In Q4 FY26, EBITDA per ton rose to INR 4,685. Management described Q4 FY25 as an unusually weak quarter due to volatility in steel, implying that part of the sharp year-on-year jump is normalization, while the quarter-on-quarter movement is a better measure of steady-state performance.

Note: INR crore conversions are based on INR million figures in the presentation.

Volume engine: Mangaon and the DFT push

JTL’s FY26 volume growth became far more visible in Q4, when volumes jumped 50.5% year-on-year. In the concall, management attributed most of the incremental quarterly volume to the Mangaon facility in Maharashtra. They also said value-added products formed about 27% of the sales mix in Q4.

The company’s stated product portfolio spans MS hollow sections, galvanized pipes and tubes, DFT structural steel pipes, solar mounting structures, lattice towers, and metal crash barriers. Operationally, it runs manufacturing in Punjab, Maharashtra and Chhattisgarh, with a total installed capacity of about 1.0 million TPA as shown in the deck.

Management also shared that Mangaon utilization was about 35% to 40%, and described onboarding and impanelment of DFT products as an ongoing effort. This matters because under-utilized assets are a key reason why return ratios have fallen during the recent capex cycle.

Exports and certifications: a real lever, but still early

Exports were a clear positive in FY26. The company reported export contribution of about 10% for FY26, with Q4 exports at about 10.6% of total sales and export volumes up strongly year-on-year.

Management’s export target is to reach 15% export contribution in the coming years. They also referenced the ACRS certification received in 2026, which certifies manufacture of cold-formed structural steel hollow sections to Australian standards (AS/NZS 1163:2016) and is valid till 31 December 2026.

While the company did not quantify export margins versus domestic in a consistent way, management indicated that exports are largely value-added products such as galvanized items and DFT. They also said export pricing depends on relative domestic and global market conditions.

Balance sheet and cash flows: capex shows up in debt and working capital

FY26 was also a year where the balance sheet expanded significantly. Total assets rose to INR 1,996.3 crores at March 2026 from INR 1,339.1 crores at March 2025, driven by higher fixed assets and CWIP.

Capital structure metrics show that net debt moved to INR 199.5 crores at March 2026 from near flat at March 2025. Net debt to EBITDA was shown at 1.3x for FY26. Interest coverage also fell to 12 in FY26, from 25 in FY25.

Working capital also stretched. Receivable days increased to 59 in FY26 from 45 in FY25, and inventory days rose to 49 from 40. The company did show improvement in cash conversion at an aggregate level, with operating cash flow to EBITDA shown at 1.1 in FY26 after negative ratios in FY24 and FY25.

Management’s explanation linked cash flow and returns primarily to a heavy capex cycle. They stated that as the capex nears completion, cash flows should improve, and they expect positive cash flow by next financial year.

FY27 outlook: explicit guidance on volumes, profitability and capex

The concall included clear numeric guidance. Management guided for about 30% year-on-year volume growth in FY27, and 10% to 15% growth in EBITDA per ton versus FY26’s INR 3,900.

On capex, management guided for about INR 100 to 120 crores in FY27, with INR 60 to 70 crores in H1 and maintenance capex of INR 30 to 40 crores in H2. They said the Maharashtra capex, including the cold rolling complex and new products such as colour-coated pipes and GT pipes, is near completion and should be fully running by end of H1.

Management also confirmed that the target to reach about 2 million tons capacity by FY27 remains intact, although they acknowledged delays in earlier capex timelines due to factors including rains.

JTL Defence: early-stage integration with ambitious scale-up targets

A notable development is JTL Defence, acquired and made a subsidiary in FY26. The unit manufactures copper alloys, brass alloys, and phosphorous bronze alloys. Management said Q4 was the first quarter under new management after acquisition in December, and reported about INR 15 crores topline in Q4 with profitability and a reported 20% EBITDA margin. They also cautioned that the margin had inventory-related factors.

For FY27, management guided for INR 150 to 200 crores topline from JTL Defence and outlined a production ramp-up from a current run rate of about 150 metric tons per month to 500 metric tons per month by the exit quarter.

Takeaways

FY26 for JTL Industries was a mix of operational strength and financial strain typical of a capex cycle. Volumes hit records and EBITDA margin improved, supported by better utilization and a higher share of value-added products, particularly through Mangaon and DFT pipes. Exports moved past the 10% mark and management has a clear target of 15% export contribution.

At the same time, net debt and working capital increased, while ROCE remained low at 8.6% in FY26. Management’s FY27 guidance is measurable and time-bound, especially around volume growth, EBITDA per ton improvement, and completion of Maharashtra capex by end of H1. The key monitoring points are whether utilization rises meaningfully as new capacity comes online and whether returns revert toward the 20% to 30% ROCE levels management referenced once the assets start sweating.