10% Lower Circuit: Steel Stock Crashes After Reporting Weak Q3 Results

Synopsis: Jayaswal Neco Industries plunged sharply after it reported a disappointing Q3, with revenue declining by 3% QoQ, and profit fell sharply by 30% during the same period.

The shares of this flagship company of NECO Group of Industries, which is a producer of Iron & steel castings and also engaged in the manufacturing and supply of billets, rolled products, pig iron & skull, sponge iron, pellets, steel, and Iron & steel castings, are in focus after reporting disappointing results for Q3. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 7,615 crore, the shares of Jayaswal Neco Industries Ltd made a day low at Rs 78.30 per share (lower circuit), down 10 percent from its previous day’s closing price of Rs 86.99 per share. Over the past five years, the stock has delivered a multibagger return of 1,149 percent, outperforming NIFTY 50’s return of 78 percent.

Q3 Highlights

The revenue from operations for Jayaswal Neco Industries stands at Rs 1,727 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 1,657 crores, up slightly by 4 per cent YoY. However, on a QoQ basis, it reported a decline of 3 percent from Rs 1,781 crore. Also, EBITDA declined by over 6 percent from Rs 331 crore in Q2 FY26 to Rs 310 crore in Q3 FY26.

Coming down to its profitability, the company’s net profit stood at Rs 74 crore in Q3 FY26, down from Rs 77 crore in Q3 FY25, which is a decline of 4 percent YoY. Additionally, on a QoQ basis, it reported a staggering drop of 30 percent from Rs 105 crore.

In Q3 FY26 (vs Q2 FY26), production (in MT) improved for Rolled products to 1,77,875 MT (from 1,72,182 MT) and Hot Metal to 2,09,270 MT (from 2,08,043 MT). Billets stayed flat at 1,84,662 MT (vs 1,84,701 MT), while Pellets eased to 3,54,493 MT (from 3,58,624 MT). Additionally, Iron & Steel Castings dipped to 11,815 MT (from 12,457 MT) and Sponge Iron (DRI) dipped to 78,133 MT (from 79,302 MT).

Jayaswal Neco Industries Ltd operates out of Nagpur, producing a variety of steel products and iron or steel castings for customers throughout India. They manufacture pellets, sponge iron, pig iron, billets, and alloy steel bars, the materials that are used in automobiles, trains, major infrastructure projects, and engineering works. Additionally, they provide auto and industrial castings under the NECO brand, including housings, axles, gear parts, and even components for railways.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post 10% Lower Circuit: Steel Stock Crashes After Reporting Weak Q3 Results appeared first on Trade Brains.