Jindal Steel stock dips as company secures Roida-I mining block and expands coated steel capacity

How does the Roida-I block award strengthen Jindal Steel’s backward integration and long-term ore supply?

Jindal Steel & Power Limited (NSE: JINDALSTEL, BSE: 532286) saw its stock close at ₹956.55 on July 3, 2025, down 1.25% from the previous day’s close of ₹968.70. This decline came even as the industrial conglomerate announced a major strategic win: the receipt of a Letter of Intent (LoI) from the Government of Odisha for the 50-year lease of the Roida-I Iron Ore and Manganese Block in Keonjhar district.

The award of this key mineral asset—secured via e-auction on June 6, 2025—is expected to substantially enhance the self-reliance of Jindal Steel’s raw material supply chain. The Roida-I block spans 104.84 hectares and contains an estimated mineral reserve of 126.05 million tonnes. It is backed by an environmental clearance capacity of 3 million tonnes per annum (MTPA), according to the press release issued on July 3.

Institutional investors view this development as a continuation of Jindal Steel’s long-standing strategy of backward integration. By securing critical raw materials in-house, the steelmaker reduces exposure to commodity price volatility and logistical bottlenecks. Analysts noted that this LoI enhances operational control, lowers dependency on external ore procurement, and strengthens cost competitiveness—especially relevant in a high-inflation global commodity environment.

What does the Roida-I mining lease mean for cost control and capacity utilisation at the Angul complex?

The Roida-I block is particularly significant for Jindal Steel’s flagship Angul Integrated Steel Complex in Odisha. The plant, which currently operates at around 6 MTPA, is set to double its capacity to 12 MTPA by the end of 2025. In this context, the secure and long-term supply of iron ore and manganese from a nearby mine significantly improves logistical efficiency, reduces freight costs, and ensures a consistent quality of input materials.

Pankaj Malhan, Executive Director of the Angul plant, indirectly signaled that the block will be instrumental in maintaining production stability and supporting future expansions. He emphasized the lease as a “critical enabler” for cost efficiency and operational resilience, echoing broader industry trends that reward vertically integrated players.

Moreover, the block’s manganese deposits are likely to support alloy steel production, which has been a focus area for Jindal Steel as it targets higher-margin products with superior value addition. The move also aligns with India’s broader push for resource nationalism and mineral self-sufficiency in the wake of global geopolitical shifts.

How does the CGL 1 commissioning impact Jindal Steel’s coated steel product strategy and downstream value?

Just days before the Roida-I announcement, Jindal Steel also revealed the commissioning of its first Continuous Galvanizing Line (CGL 1) at the Angul plant on June 30, 2025. The new line will significantly boost the company’s coated steel offerings under the “Jindal Panther Galvanised” and “ZINKALUME” brands.

The CGL 1 facility is engineered to process steel thicknesses from 0.15 mm to 1.50 mm and widths up to 1,400 mm. It caters to sectors such as automotive, appliances, infrastructure, and construction—particularly targeting products like white goods, ducting systems, fuel tanks, and solar structures. The ZINKALUME segment, with its aluminium-silicon-zinc coating, offers enhanced corrosion resistance, making it attractive for tropical and coastal deployments.

Chairman Naveen Jindal, in a statement issued alongside the commissioning, projected that the Panther and ZINKALUME lines would “set new benchmarks” in India’s coated steel segment. The vertical expansion into galvanised and galvalume offerings helps diversify Jindal Steel’s revenue streams and elevates its value-added steel portfolio at a time when commoditised steel prices remain volatile.

What is the current stock performance and valuation trend of Jindal Steel & Power?

As of July 3, 2025, Jindal Steel’s share price stood at ₹956.55, with a day low of ₹954.00 and a high of ₹985.20. The traded volume was approximately 15.06 lakh shares, generating a turnover of ₹146.45 crore. The total market capitalization was ₹97,576.53 crore, with a free float market cap of ₹35,241.62 crore. The stock currently trades at a price-to-earnings (P/E) ratio of 34.61, based on available data.

The counter has declined from its 52-week high of ₹1,073.70 (recorded on September 17, 2024), but remains significantly above the 52-week low of ₹723.35 posted on January 31, 2025. Analysts believe the recent correction reflects profit-booking after the rally in March–April and not a structural weakness. Short-term sentiment remains neutral to mildly bullish, contingent on Q2FY26 production volumes and project execution milestones.

The stock is part of the NIFTY NEXT 50 index, making it relevant for large institutional funds, ETFs, and passive investors. Experts expect that improved clarity on Angul expansion ramp-up and backward integration success could catalyze a rerating in the coming quarters.

How does this dual development support Jindal Steel’s transition toward higher value and ESG-aligned growth?

Both the mining lease and the new galvanizing line signal a strategic pivot toward future-ready industrial capabilities. On one hand, the Roida-I block strengthens upstream security; on the other, CGL 1 enhances downstream value capture—together reinforcing Jindal Steel’s ambition of becoming a vertically integrated steel powerhouse with ESG-aligned operations.

The emphasis on sustainable mining and clean production was underscored in both announcements. With a publicly declared ambition to reduce its carbon footprint, Jindal Steel is aligning its infrastructure growth with environmental and operational benchmarks. Notably, galvanised and galvalume products are more recyclable and durable—traits that fit into green building and low-emission automotive trends.

From a capital market perspective, this dual-track strategy improves visibility on earnings quality, operating margins, and long-term cash flow sustainability. It also opens the door for ESG-focused investors to view Jindal Steel as a potential inclusion in thematic portfolios tracking green manufacturing and sustainable infrastructure.

What is the forward outlook for Jindal Steel following the LoI and galvanizing plant expansion?

Looking ahead, Jindal Steel is expected to focus on timely operationalisation of the Roida-I block, regulatory compliance, and the fast-tracked commissioning of the second galvanizing line. With an additional 6 MTPA crude steel capacity planned for Angul, the company is on track to become one of India’s largest single-location steelmakers by year-end 2025.

Analysts are closely watching the speed of approvals and the actual production lift from Roida-I. They also expect investor interest to grow around coated steel market penetration, especially if Jindal Steel can capture higher market share in the appliance and auto supply chains.

Institutional sentiment remains cautiously optimistic. While the near-term price action may continue to fluctuate in response to commodity cycles, the long-term structural narrative of value addition, supply security, and sustainable growth continues to solidify.