Nagpur: Jayaswal Neco Industries Ltd (JNIL) has recorded a 300% jump in profit after tax (PAT) for the financial year ending March 2026, signaling a strong turnaround for the company that was once embroiled in the coal block allocation controversy.
The earlier withdrawal of coal blocks had significantly disrupted the company's ability to service debt, thereby affecting overall profitability. Reduced finance cost after retiring earlier debts and higher production have led to the profits, according to the company's promoters.
JNIL's PAT rose from Rs113 crore in March 2025 to Rs463 crore in March 2026. Buoyed by this performance, the company has lined up an investment of Rs760 crore. This includes Rs41 crore as equity participation in a special purpose vehicle (SPV) formed by Waree Group's renewable energy arm for setting up a captive solar power plant. The proposed plant will supply power to JNIL's steel facility at Siltara near Raipur in Chhattisgarh, where the company plans to double the capacity to make pellets.
The expansion entails an investment of Rs720 crore. The promoters also plan to pump around Rs200 crore through share warrants. As the company would also be raising loans for its new projects, it would be done by simultaneously cutting down old debt, said management sources.
JNIL operates an integrated steel plant in Raipur with a capacity of 1 million tonne, along with a pellet unit of 1.5 million tonne, which is now set for expansion. The company also holds iron ore blocks in Narayanpur and Kanker districts of Chhattisgarh. JNIL is into making special steel used in various sectors, especially automobiles.
Both the equity investment in the Waree Group venture and the pellet plant expansion have received approval from the board of directors. The company's results were announced last week.
