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JSPL’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) per tonne on a standalone basis stood at ₹10,668, which was lower than the CNBC-TV18 poll of ₹11,230.
On other parameters, JSPL’s revenue were flat from last year, profit halved, while margins also narrowed by nearly 600 basis points on a year-on-year basis.
The company is also in the midst of expanding its capacity from 9.6 MT to 15.9 MT for which it is incurring capex between financial year 2026 to 2028. Total capex during this phase is seen at ₹23,400 crore.
This capex plan appears to have worried the street as the company’s net debt also increased during the December quarter to ₹13,551 crore, from ₹12,464 crore last quarter and ₹11,203 crore at the end of financial year 2024.Morgan Stanley remains “overweight” on JSPL with a price target on ₹1,200 but said that the news of the additional capex plan surprised them.
Citi has a “sell” rating on the stock with a price target of ₹765.
“Investors will likely be concerned about newly announced capex without any commensurate capacity increase,” Citi wrote in its note.
Out of the 28 analysts who have coverage on JSPL, 20 of them have a “buy” rating on the stock, while four each have a “hold” and “sell” rating.
Shares of JSPL are currently locked in a 10% lower circuit at ₹756.06. The stock is now down 31% from its peak of ₹1,056.
