Net Debt at 87,040 Crore Rupees Signals Leverage for 11 Trillion Rupee Capex, But Import Duties Pose Margin Risks.
The integrated steel producer's shares rose 2% to 181.50 rupees following a 4.19-fold quarterly net profit surge to 3,183 crore rupees, exceeding estimates on 6% volume growth. Deliveries hit 5.3 million tonnes, with EBITDA up 25% to 7,500 crore rupees at 14% margins.
Market effects ripple to the Nifty Metal index, advancing 1.8%, as the firm's 34% domestic capacity utilization benefits from 11 trillion rupee budget allocations. Exports to Europe added 10% revenues, though 20% global duties inflate costs 8%.
Policy support via the 2025 Steel Scrap Recycling Policy targets 40% recycled input by 2030, cutting emissions 30% and adding 0.3% to sector GDP. Consumer demand in construction surges 15%, with 55% builders favoring green steel per surveys.
Innovation in hydrogen-based reduction pilots promises 20% energy savings, aligning with net-zero mandates. Economically, the results sustain 500,000 jobs, injecting 20,000 crore rupees into supplier chains. With a 105,000-point Sensex target, the stock navigates volatility toward 200 rupees.
