Synopsis:
JTL Industries plans to add 3 lakh MTPA capacity with a new ERW pipe manufacturing line, targeting high-grade markets like oil & gas, enhancing product range, profitability, and industry positioning.
During Thursday’s trading session, shares of a steel tube manufacturing company surged nearly 6.4 percent on BSE, after the company announced capacity expansion for a 3 Lakh MTPA facility with the new Electric Resistance Welded (ERW) pipe manufacturing line.
With a market cap of Rs. 3,230 crores, the shares of JTL Industries Limited closed in the green at Rs. 84.54 on BSE, up by nearly 4.5 percent, as against its previous closing price of Rs. 80.86. The stock has delivered negative returns of around 22 percent in one year, but has gained by more than 6 percent in the last one month.
What’s the News
JTL Industries Limited, in its latest exchange filing, has announced a major capacity expansion plan through the commissioning of a new Electric Resistance Welded (ERW) pipe manufacturing line, specifically targeted to serve the growing demand in the ASTM/API-grade pipe market.
This facility will add a substantial annual capacity of 3 lakh metric tonnes per annum (MTPA), strengthening JTL’s presence in the value-added and high-strength steel pipe segments. The new line is scheduled to be fully installed and operational within 12 months.
With this new manufacturing line, JTL will be able to produce a wider range of pipe specifications, including round pipes, square sections, rectangular sections, and many other as per preference.
The management highlighted that this strategic investment aligns with JTL’s broader goal of diversifying its product mix and expanding its presence in premium segments such as oil & gas, water transmission, and city gas distribution (CGD). These markets typically generate strong EBITDA margins of Rs. 7,000-8,000 per tonne, making the expansion a highly value-accretive move.
With this development, JTL is set to join a select group of Indian manufacturers capable of producing large-diameter, thick-wall API-grade ERW pipes. The new facility will also allow the company to offer over 500 SKUs, significantly enhancing its ability to serve complex, customised infrastructure needs across industries.
Financials and More
JTL Industries reported a marginal growth in its revenue from operations, showing a year-on-year rise of around 1 percent from Rs. 466 crores in Q4 FY24 to Rs. 469 crores in Q4 FY25. Similarly, its net profit decreased during the same period from Rs. 30 crores to Rs. 17 crores, representing a decline of around 43 percent YoY.
JTL Industries Limited is primarily engaged in the business of manufacturing and sale of Iron and Steel products. The company is an integrated manufacturer and supplier of steel tubes, pipes, and allied products, having four manufacturing facilities in Derabassi & Mandi Gobindgarh (Punjab), Raipur (Chhattisgarh), and Mangaon (Maharashtra).
Written by Shivani Singh
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