1. At a Glance
If you thought steel companies were all about “heavy metal” and not “smart business,” think again. Jai Balaji Industries Ltd (JBIL) — once the poster child for debt restructuring — is now a ₹6,311 crore market-cap beast polishing its brand with Ductile Iron Pipes, Ferro Alloys, and a zero-dividend attitude sharper than its steel billets.
At ₹69.4 per share, the stock has melted 62% in a year (yes, even steel can melt), but the company’s ROCE of 36.1% and ROE of 30.7% say this is no rusting junkyard. With debt down from ₹3,170 crore in FY22 to ₹459 crore in FY25, Jai Balaji has pulled off the kind of balance sheet transformation that deserves its own Netflix docuseries — “From Loan Default to Liquid Steel.”
Q2 FY26 wasn’t all shiny, though. Sales dipped 13% YoY to ₹1,353 crore, and PAT plunged 82.7% to ₹26.5 crore. Still, with a P/E of 21.6, EV/EBITDA of 11.4, and book value of ₹24.4, the company’s balance sheet looks more muscular than its share price admits. The iron might be cold on the market, but in the furnace of West Bengal and Chhattisgarh, JBIL is burning hot.
2. Introduction – The Reborn Iron Man of Eastern India
Remember those friends who disappear for a while, only to reappear with gym abs and a “self-made” post on LinkedIn? That’s Jai Balaji Industries in a nutshell.
Founded in 1999, JBIL had everything going wrong in the 2010s — debt piling up faster than sponge iron production, negative reserves, and auditors probably crying into their balance sheets. But from FY22 onwards, something miraculous happened: it started acting like a business.
Debt got restructured (thanks to Edelweiss ARC), capex was funded internally, and the company began pushing value-added products like Ductile Iron (DI) Pipes and Specialized Ferro Alloys, instead of just generic billets and rods. By FY25, it wasn’t just making steel — it was making headlines.
Exports grew from 5% in FY22 to 9% in FY24, and value-added products (DI Pipes + Ferro Alloys) now account for 47% of revenue, up from 39% two years ago. In FY26, the company aims to make 80% of revenue from value-added segments — which basically means “stop being a commodity player and start acting like Tata Metaliks with swagger.”
So what do we get when you mix internal accruals, zero dividends, and an expansion plan worth ₹1,000 crore? A steel company trying to go from “rolled out” to “rolling over competition.”
3. Business Model – WTF Do They Even Do?
Jai Balaji Industries isn’t your regular rebar maker from Howrah. It’s a vertically integrated steel player, with presence across every stage of the steel value chain — right from iron ore to finished DI pipes.
Think of it as a thali — with DI Pipes as the paneer, Ferro Alloys as the dal, and TMT bars as the salad you ignore.
Here’s the buffet they serve:
- Core products: Ductile Iron Pipes and Specialized Ferro Alloys.
- Other segments: Sponge Iron, Pig
- Iron, Steel Billets, TMT Bars, Coke, and Power (101.1 MW captive).
- Geography: 91% domestic, 9% export — but the export pie is growing faster than a Diwali sale.
Their four manufacturing units spread across West Bengal and Chhattisgarh churn out millions of tonnes annually. Unit III alone has a 70 MW captive power plant — because why pay the grid when you can literally make your own electricity from waste gases?
The key? Integration. From coal to coke, and from billets to DI pipes, they control the entire process. That keeps costs tight and margins higher. The company’s OPM has improved from 4% in FY22 to 9% in FY25, even amid falling steel prices.
Basically, Jai Balaji is trying to be the “JSW Steel of Durgapur” — but with DI pipes instead of social media posts.
4. Financials Overview
| Metric (₹ Cr) | Q2 FY26 | Q2 FY25 | Q1 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,353 | 1,557 | 1,357 | -13.1% | -0.3% |
| EBITDA | 72 | 228 | 127 | -68.4% | -43.3% |
| PAT | 26.5 | 153 | 71 | -82.7% | -62.7% |
| EPS (₹) | 0.29 | 1.68 | 0.77 | -82.7% | -62.3% |
Annualized EPS = ₹1.16 → P/E ≈ 59.8 (short-term)
Commentary:
Q2 was not the blockbuster sequel investors hoped for — more like the underwhelming third movie in a franchise. EBITDA margins crashed from 15% to 5%, thanks to steel price corrections and sluggish domestic demand. But even then, the company stayed profitable, which is no small feat for a firm that once booked -₹690 crore losses.
You can almost imagine management saying, “Don’t worry, next quarter hum steel bhi bechenge aur meme bhi banayenge.”
5. Valuation Discussion – Fair Value Range Only
Let’s play the valuation game:
P/E Method:
- FY25 EPS = ₹3.21
- Industry P/E = 22
- So, Fair Value = 3.21 × 22 = ₹70.6 per share (basically CMP).
EV/EBITDA Method:
- EV = ₹6,715 crore
- FY25 EBITDA = ₹522 crore
- EV/EBITDA = 12.8x
- Industry Average (Ferrous Peers): 10–12x
- Fair Value Range = ₹60 – ₹80
DCF Method:
- Assume 10% CAGR in FCF (₹311 crore in FY25) for next 5 years
- Discount rate 12%, terminal growth 3%
- DCF Value ≈ ₹6,200–₹6,600 crore → per share fair value ₹68–₹72
📉 Fair Value
