Synopsis:
JTL Industries posted a 16% QoQ revenue growth in Q1 FY26 driven by record sales volumes, but profitability remained flat sequentially and declined YoY. The company is expanding into high-margin segments like brass foils and API grade pipes.
A key player in the steel manufacturing sector remained in focus today after reporting a robust 16 percent sequential growth in revenue for Q1 FY26, backed by record sales volumes of 1.08 lakh metric tonnes. However, despite the strong Sales performance, profitability remained muted, with growth flat both sequentially and significantly lower year-on-year.
The company in focus is JTL Industries Limited, with a market capitalization of Rs. 3,031 crore. The stock opened weak today at Rs. 76, matching its intraday low, and was notably lower than its previous close of Rs. 81.63. This reflects a decline of approximately 6.9 percent, indicating a muted investor response post the quarterly results.
What’s the News?
Quarter-on-Quarter (Q-o-Q) basis, JTL Industries reported a revenue from operations of Rs. 544 crore in June 2025, reflecting a healthy growth of 16 percent compared to Rs. 469 crore in March 2025. Operating profit also rose by 27.7 percent, increasing from Rs. 18 crore to Rs. 23 crore. However, profitability at the bottom line remained stable, with profit before tax (PBT) flat at Rs. 22 crore and net profit unchanged at Rs. 17 crore.
Year-on-Year (Y-o-Y) basis, revenue from operations inched up by 5.4 percent from Rs. 516 crore in Q1 FY25 to Rs. 544 crore in Q1 FY26. Despite the sales growth, profitability saw significant declines. Operating profit fell sharply by 42.5 percent from Rs. 40 crore to Rs. 23 crore. PBT declined by 46.3 percent, dropping from Rs. 41 crore to Rs. 22 crore, while net profit contracted by 45.1 percent from Rs. 31 crore to Rs. 17 crore.
The company also achieved its highest ever quarterly sales volume of 1.08 lakh metric tonnes, with JTL Engineering contributing significantly to this growth. Domestic sales formed 94 percent of volumes, while exports stood at 6 percent. Notably, the contribution of value-added products increased to 20 percent of total sales, compared to 11 percent in the previous year, whereas the commercial grade contributed 80% to the total sales.
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Comments from the Management
The management noted that the first quarter of FY26 began on a positive note with new product launches and planned capacity expansions. They highlighted the exponential growth driven by JTL Engineering and emphasized the company’s success in entering the specialized ultra thin brass foil market. The brass foil, produced in partnership via job-work arrangements, is aimed at applications in defence and industrial sectors. They also expressed confidence in scaling high margin segments, particularly with the upcoming commissioning of the ERW pipe manufacturing line for API grade pipes, enhancing their presence in the oil and gas, water transmission, and city gas distribution sectors.
Strategic Outlook and Other Information
Strategically, the company is gearing up to produce large diameter API compliant pipes, positioning itself as one of the few Indian manufacturers capable of serving this specialized market. The addition of over 500 SKUs across its portfolio enhances its ability to meet diverse infrastructure needs.
JTL has also entered into the niche brass foil segment with a thickness of 0.04 mm, targeted at high precision applications such as EMI/RFI shielding and defence grade components. The company plans to begin supplying the defence sector in the coming months, adding another high-margin vertical to its business.
JTL boasts a robust global footprint, exporting products to over 20 nations across five continents, including key markets in Europe, North America, Asia, Africa, and Australia. This diversified presence supports its long-term growth ambitions in both domestic and international markets.
About the Company
JTL Industries Limited is one of India’s fastest growing steel tube manufacturers, headquartered in Chandigarh. With manufacturing facilities in Punjab, Maharashtra, and Chhattisgarh, the company has a cumulative capacity of approximately 9,36,000 MTPA for pipe manufacturing and 3,00,000 MTPA for backward integration. Its diverse product portfolio includes GI Pipes, MS Black Pipes, Hollow Sections, and Solar Structures, catering to industrial and infrastructural applications. The company is also a recognized Star Export House, underlining its strong export capabilities.
Written by – Manan Gangwar
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