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    Jindal Saw

    JINDALSAWGood
    Capital Goods·19 Jan 2026
    Management Summary

    Jindal Saw reported a strong sequential recovery in Q3 FY26, with management signaling that Q2 marked the bottom of the current cycle. While YoY performance remains pressured by challenges in the domestic water sector (Jal Jeevan Mission), the company is aggressively diversifying into GCC markets with new projects in UAE and Saudi Arabia. The pipe sector continues to see robust demand, supported by a growing order book and capacity expansions in the seamless segment.

    Highlights

    7

    • Consolidated Revenue reached ₹4,963 crores, showing a 16.4% sequential growth from Q2 FY26.

    • Consolidated EBITDA improved to ₹632 crores, up 31.1% QoQ, though still down 34.2% YoY.

    • Total order book volume increased to 19.64 lakh metric tons in December 2025 from 19.25 lakh metric tons in September 2025.

    • Ductile Iron (DI) pipe order book stands at approximately 40% of the total volume, valued at ~$560-570 million.

    • Consolidated net institutional debt reduced to ₹3,346 crores from ₹3,856 crores in the previous quarter.

    • New seamless plant piercing mill commenced production, enabling a capacity increase to 4 lakh tons per annum.

    • Secured a major export contract for 6,22,000 metric tons of HSAW pipes for Saudi Arabia.

    Concerns

    1

    • Protracted payment timelines in Indian water sector

    What Changed2

    vs Q4 FY26

    Risks discussed5 → 3 (-2)Q&A highlights7 → 3 (-4)

    Key financials

    Single quarter

    05 metrics
    1. 01Consolidated Revenue₹4,963 Cr-6.2%YoY
    2. 02Consolidated EBITDA₹632 Cr-34.2%YoY
    3. 03Consolidated PAT₹248 Cr-48.2%YoY
    4. 04Total Order Book19.64 lakh metric tons+2.0%QoQ
    5. 05Net Institutional Debt₹3,346 Cr-13.2%QoQ

    Segment breakdown

    • Ductile Iron (DI) Pipes565 Mn70.6%
    • UAE Entity (Abu Dhabi)235 Mn29.4%
    Donut· Share of Order Book Value

    Guidance & targets

    4
    CategoryTargetPriority
    Capacity
    Seamless Pipe Production
    90,000 tons per quarter
    		High
    Capacity
    GCC Projects Commissioning
    February 2028
    		Medium
    Volume
    Peak Achievable Pipe Volume
    2.2 million tons
    		Medium
    Margin
    EBITDA Margin
    25%
    		Low

    Risks & concerns

    5
    RiskSeverity

    Protracted payment timelines in Indian water sector

    Lengthy receivable days from public infrastructure projects pose a challenge for supply chain stability. — Management acknowledged

    high

    DI Pipe Margin Compression

    Stoppage in JJM fund release has reversed the market dynamic, leading to higher supply and lower demand. — Both acknowledged

    medium

    Geopolitical and Economic Volatility

    Unanticipated tariffs and volatile conditions impact global trade, particularly in the US and Canada markets. — Management acknowledged

    medium

    Areas of Evasion(2)

    • Product-wise margin details
    • Specific volume growth percentage targets for next year

    Q&A highlights

    3

    “The current order book is comparatively lower than the previous order book... But we are expecting a few tenders to come, which will help us to increase our production.”

    Reveals that while capacity is expanding, the immediate order book for seamless pipes is currently soft, relying on upcoming ONGC tenders.

    asked by Sailesh Raja, B&K Securities

    2 min read5 chapters

    Detailed Narrative

    01

    Sequential Recovery from Cyclical Bottom

    Management emphasized that Q2 FY26 represented the bottom of the business cycle. Q3 demonstrated a significant recovery, with standalone EBITDA rising to ₹527 crores from ₹335 crores in Q2. This improvement was driven by higher volumes and improved productivity across the pipe sector, despite ongoing challenges in the domestic water segment.

    02

    Strategic Pivot to GCC Markets

    Jindal Saw is aggressively expanding its footprint in the MENA region to safeguard market share. Key initiatives include a wholly owned seamless pipe plant in Abu Dhabi and joint ventures for HSAW and DI pipe units in Saudi Arabia, with 51% ownership. These projects, involving an initial equity infusion of USD 20 million for the UAE plant, are expected to impact financials starting from FY29.

    03

    Navigating Jal Jeevan Mission Headwinds

    The domestic water pipe business, particularly ductile iron, faces challenges due to protracted payment timelines and fund release issues under the Jal Jeevan Mission. Overdue receivables stand at approximately ₹350 crores. However, management remains optimistic about the upcoming Union Budget and expects a revival in government spending and fund disbursement by February.

    04

    Seamless Pipe Capacity Expansion

    The company has stabilized its new piercing mill, enabling a capacity increase to 4 lakh tons per annum. Production is expected to ramp up to 90,000 tons per quarter in Q4 FY26. While the current order book is lower than previous levels, management anticipates new tenders from ONGC and is exploring export opportunities in the US and Canada to fill the capacity.

    05

    Debt Reduction and Liquidity Management

    Jindal Saw successfully narrowed its consolidated net institutional debt to ₹3,346 crores as of December 31, 2025, down from ₹3,856 crores in September. Long-term institutional debt is a small fraction at ₹690 crores, with the remainder being working capital debt. The company maintains a strong liquidity position with ample working capital lines to support its operational requirements.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.