26-Oct-2026 08:40:31
CITI on JSPL ; Sell, TP cut to Rs 850 from Rs 900
At Rs25bn (ahead on realizations and volumes), 2Q consol adj EBITDA rose 34% yoy on higher volumes (+27%) and realizations (+12%), offset in part by higher costs (14%). Adj EBITDA/t: Rs10,520 vs. Rs11,960 in 1Q, Rs10,030 last year. Blended realizations rose by Rs650/t qoq; higher costs offset the benefit (expect further increase in coking coal costs in 3Q). JSPL is hopeful of achieving FY27 sales target of 10.5-11mt, 21-26% yoy growth (1H +22% to 4.61mt). JSPL would like to enhance flat proportion from 61% to 65% going forward While spot prices are higher vs. 2Q, think quantum may not be significant for JSPL Further there is likely downside to spot India EBITDA/t, flat prices at premium to import parity (Rs2,500/t).
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