Jindal Saw — Q3 FY26 earnings call

Call held 19 Jan 2026

Management summary

Jindal Saw reported a strong sequential recovery in Q3 FY26, with consolidated revenue growing 16.4% QoQ to INR 4,963 crores and PAT surging 78.4% QoQ to INR 248 crores. This improvement was driven by higher volumes and productivity, despite a YoY decline in performance. The company maintains a robust order book of 19.64 lakh metric tons, supported by strategic expansions in the MENA region, but faces challenges from payment delays in the domestic water sector and margin pressure in the DI pipe segment.

Highlights

  • Strong sequential recovery in consolidated financials, with Total Income up 16.4% QoQ to INR 4,963 crores and PAT surging 78.4% QoQ to INR 248 crores.

  • Robust order backlog of 19.64 lakh metric tons in the pipes business, providing strong visibility for growth.

  • New seamless plant piercing mill in India is stabilizing production, increasing capacity by approximately 4 lakh tons per annum.

  • Strategic expansion into the MENA region with new projects (UAE seamless, KSA saw/DI pipe JVs) progressing towards 2028 commissioning.

Concerns

  • Consolidated Total Income down 6.2% YoY and EBITDA down 34.2% YoY, indicating a lag behind the previous year's performance.

  • Significant impact on the water pipe business due to protracted payment timelines in the Indian water sector, leading to approximately INR 350 crores in overdue receivables.

  • DI segment experiencing margin compression due to increased supply and lower demand, as market conditions have reversed from supplier-driven.

Key financials

  1. Consolidated Total Income ₹4,963 Cr -6.2%YoY
  2. Consolidated EBITDA ₹632 Cr -34.2%YoY
  3. Consolidated PAT ₹248 Cr -48.2%YoY
  4. Consolidated EBITDA Margin 12.7%

What they filed

Q1 FY27: revenue up 9.0%, net profit down 78.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue5,572 5,271 5,047 4,085 4,234 −24%4,943 −6%4,633 −8%4,452 +9%
EBITDA914 939 736 670 451 −51%613 −35%478 −35%391 −42%
Net profit475 479 87 415 139 −71%248 −48%124 +43%91 −78%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

$1.7 Bn

as of 2025-12-31 quantified

Composition

Mix 3 products
  • Total Pipe Business Volume 19.64 lakh metric tons 3.3%
  • DI Pipe Volume 7.856 lakh metric tons 1.3%
  • DI Pipe Value $560 Mn 95.3%

Share of order book by product, derived from disclosed amounts

The company's sales funnel is expanding, resulting in a strong and growing order book with significant interest from global and local markets.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • New seamless pipe plant in Abu Dhabi (KEZAD Zone) $20 Mn
    • Saw pipe manufacturing facility in Saudi Arabia (JV)
    • Ductile iron pipe facility in Kingdom of Saudi Arabia (JV)
    new seamless facility in Abu Dhabi, KEZAD Zone, establishing through a step-down subsidiary named Jindal Seamless Pipe Manufacturing LLC with initial USD 20 million equity infusion... Jindal Saw Limited has established a joint venture with Buhur in the Kingdom of Saudi Arabia to develop a state-of-the-art saw pipe manufacturing facility... announcement of joint ventures for HSAW pipe unit and the duct iron pipe facility in Kingdom of Saudi Arabia with 51% ownership in both the projects.
  • Debt Net ₹3,346 Cr Maturity: well-staggered redemption schedule between 2028 and 2030 for LIC-backed debt
    On the consolidation side, the net institutional debt has reduced to INR3,346 crores as compared to INR3,856 crores as at 30th September 2025. The long-term institutional debt is only INR690 crores... Our long-term debt structure remains highly sustainable, featuring a stand-alone exposure of approximately INR533 crores only notably, INR500 crores is attributable to the LIC-backed entity with a well-staggered redemption schedule between 2028 and 2030.
  • M&A HSAW pipe unit and Ductile Iron pipe facility in Kingdom of Saudi Arabia Joint venture · Announced

    In response to MENA region countries incentivizing local manufacturing as part of their respective vision statement, the Board of the company in prior meetings approved strategic investments to safeguard the market share.

    All these projects are expected to be commissioned in next 24 months approximately, that is by February 28. And we can expect the impact on the financials from FY '29.

    announcement of joint ventures for HSAW pipe unit and the duct iron pipe facility in Kingdom of Saudi Arabia with 51% ownership in both the projects. All these projects are expected to be commissioned in next 24 months approximately, that is by February 28. And we can expect the impact on the financials from FY '29.
  • Liquidity Liquidity disclosed The company's ample working capital lines from banking system further ensures we can meet all operational requirements efficiently.
    The company's ample working capital lines from banking system further ensures we can meet all operational requirements efficiently.

Guidance & targets

Volume

  • Seamless Pipe Production Volume · Q4 FY26 · High confidence 90,000 tons per quarter

    Previously 40,000 tons per quarter → 90,000 tons per quarter

    you indicated that seamless pipe production will ramp up to 90,000 tons per quarter in 4Q from current run rate of 40,000 tons, driven by the new piercing line.

    — Sailesh Raja

  • Overall Volume Growth Volume · next year · Medium confidence 15%, 20% volume growth
    So next year, we can expect a volume growth, 15%, 20% volume growth?

    — Management

Capacity

  • Seamless Pipe Annual Capacity Capacity · High confidence 4 lakh tons per annum
    This enables a capacity increase to approximately 4 lakh tons per annum, strengthening our ability to provide fast, reliable services and for most of the product sizes.

    — Vinay Kumar

Profitability

  • Consolidated EBITDA Margin Profitability · Q4 FY26 · Medium confidence better than the third quarter
    What we expect in fourth quarter, in any case, is always better than the third quarter, but fourth quarter is likely to be comparatively better than the third quarter.

    — Vinay Kumar

  • EBITDA Margin (Aspirational) Profitability · Low confidence 15% to 17%
    I'm saying 15% to 17%, yes.

    — Deepak Poddar

Project Commissioning

  • UAE Seamless & KSA JV Projects Commissioning Project Commissioning · next 24 months (by February 2028) · High confidence commissioned
    All these projects are expected to be commissioned in next 24 months approximately, that is by February 28. And we can expect the impact on the financials from FY '29.

    — Vinay Kumar

What to watch in Q4 FY26

Jal Jeevan Mission (JJM) budget announcement

Next quarter (specifically Feb 1, 2026)
Current Awaiting 1st February budget announcement and PMO decision on pending issues.
Target Positive news on budget allocation and fund release for JJM.

Why it matters

Crucial for the revival of the domestic water pipe business and resolution of overdue receivables.

Let's wait for that because once the budget announcement is done... it is the 1st February.

Risks & concerns

  • Protracted payment timelines in Indian water sector

    high

    Business related to water pipes has been impacted significantly by protracted payment timelines, with approximately INR 350 crores in overdue receivables from EPC customers under Jal Jeevan Mission.

    Management acknowledged

  • Jal Jeevan Mission (JJM) funding delays and corruption issues

    high

    JJM scheme execution is impacted by corruption and CBI issues at the state level, with matters pending at the PMO, causing delays in fund release and project progress.

    Management acknowledged

  • DI segment margin compression

    medium

    Market conditions for DI pipes have reversed due to stoppage in JJM fund release, leading to higher supply and lower demand, resulting in margin compression.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Seamless pipe demand visibility and capacity ramp-up Direct
But the current order book is comparatively lower than the previous order book -- previous quarter's order book. But we are expecting a few tenders to come, which will help us to increase our production and sale of seamless pipe in, let's say, next year.

Addresses the outlook for a key product segment and how new capacity will be utilized, indicating a lower current order book but future expectations.

Asked by Sailesh Raja

DI pipe volume breakup and order backlog Direct
So as we mentioned that we have a total order book of -- in the pipe, we have a total order book of 19.64 lakh tons. This is the total order book. In this total order book, we also mentioned that ductile comprised of 40% of this, which is -- which works out to roughly -- roughly 700,000 to 750,000 tons, and which is in this, the total I would just -- because ductile remains important for all, the total order book in terms of value for ductile is around $560 million, $570 million, in which roughly $45 million is export, okay?

Provides granular detail on the order book composition for DI pipes and highlights the strategic shift towards export diversification.

Asked by Sailesh Raja

Jal Jeevan Mission (JJM) outlook and government spending Direct
I would say -- let's say, I'm speculating. Out of INR67,000 crores, INR17,000 crores, they have now said like they will disburse. Even if they would confirm INR50,000 crores allocation for the next year, that's a very welcoming statement means now even if -- a lot of monitoring and control and all those things, they would but still they would release the money. And the circulation, the whole supply chain, which has virtually stopped for the Jal Jeevan Mission will start.

Addresses a critical factor impacting the domestic water pipe business and potential for recovery based on upcoming budget announcements.

Asked by Shweta Dikshit

Seamless pipe unit implementation timeline in Abu Dhabi Direct
Eventually, fortunately, the leasehold land, what we have signed with KEZAD, which is a local authority, land authority and all, this on this plot of land, there was already a manufacturing facility, which manufacturing facility further moved out... This saves some time.

Clarifies the timeline and efficiency of a key strategic expansion project due to existing infrastructure on the leased land.

Asked by Shweta Dikshit

Receivables improvement Direct
We have received the retention monies or money which was stuck as a usual process... We constantly keep doing efforts in terms of collections, in terms of securitization and all those things. But yes, there is improvement.

Addresses working capital efficiency and efforts to manage receivables, a common concern in the capital goods sector.

Asked by Abhishek Maheshwari

DI pipe market conditions and alternate markets Direct
It somehow, like it goes jammed because of x, y, z reason, which is known to everyone, that's getting delayed... Now coming to your second question that primarily you are saying, do we have alternate markets in terms of whether we can do domestic more domestic, more exports, which export market and all? Now we are the only supplier as of now from India who has manufacturing facility in India and Middle East.

Highlights the challenges in the domestic DI market and the strategic shift towards export diversification, leveraging existing international presence.

Asked by Abhishek Maheshwari

EBITDA margin recovery timeline Partial
No, no. So normalization doesn't mean that what we did in the last year, which is '24, '25, because normalization means the situation will start improving. So we don't see and we don't expect that we will reach to 20% in next quarter. What we expect in fourth quarter, in any case, is always better than the third quarter, but fourth quarter is likely to be comparatively better than the third quarter.

Provides insight into the expected margin trajectory, indicating sequential improvement but not a full return to previous high levels in the immediate future.

Asked by Deepak Poddar

DI segment EBITDA per ton Evasive
So Darshan, generally, we don't discuss product-wise margins in our call because that is a policy company is adopting. But you are right, there is a compression on the margins because now the market is different. Earlier, it was supplier market where the supplies were short and demand was high. Now because of the stoppage in the JJM scheme fund release, situation is reversed. Now the supplies are higher and the demand is low. So there is a compression on the margin in DI sector.

Confirms significant margin pressure in the DI segment due to market dynamics, without quantifying the specific EBITDA per ton.

Asked by Darshan Gangar

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

Jindal Saw reported a strong sequential recovery in Q3 FY26, with consolidated total income increasing by 16.4% QoQ to INR 4,963 crores. Consolidated EBITDA saw a significant jump of 31.1% QoQ to INR 632 crores, and PAT surged by 78.4% QoQ to INR 248 crores. Despite this sequential improvement, the company's performance lagged behind the comparable quarter of the previous year, with consolidated total income down 6.2% YoY and EBITDA down 34.2% YoY, reflecting a challenging market environment.

Order Book & Demand Outlook

The company's pipes business reported a rise in its total order book volume, reaching 19.64 lakh metric tons in December 2025, up from 19.25 lakh metric tons in September 2025. The consolidated order backlog, including the UAE subsidiary, stands at approximately $1.7 billion. Management expressed a positive outlook, anticipating 15-20% volume growth for the next year, driven by a strong sales funnel and increasing inquiries from both domestic and international markets, particularly for seamless pipes.

Ductile Iron (DI) Pipe Business Challenges

The DI pipe business continues to face significant challenges due to protracted payment timelines in the Indian water sector, particularly from EPC customers working under the Jal Jeevan Mission (JJM), with approximately INR 350 crores in overdue receivables. This has led to a market shift where supply now exceeds demand, resulting in margin compression in the DI sector. The company is strategically increasing its focus on DI pipe exports, which were previously minimal (less than 5%), to derisk dependence on the domestic market.

Strategic Initiatives & Capacity Expansion

Jindal Saw is actively expanding its Middle East footprint with new projects. A new seamless pipe plant in Abu Dhabi (KEZAD Zone) is under development with a $20 million equity infusion, expected to be commissioned by February 2028. Additionally, joint ventures for a saw pipe manufacturing facility and a ductile iron pipe facility in Saudi Arabia (both 51% ownership) are underway, also targeting commissioning by February 2028. The new seamless plant piercing mill in India is stabilizing production, enabling a capacity increase of approximately 4 lakh tons per annum.

Financial Position & Debt Management

The company demonstrated improved financial health with consolidated net debt reducing to INR 3,346 crores as of December 31, 2025, from INR 3,856 crores on September 30, 2025. Long-term debt on a consolidated basis stands at INR 690 crores, with INR 500 crores attributable to an LIC-backed entity having a well-staggered redemption schedule between 2028 and 2030. Management highlighted the sustainability of its long-term debt structure and its focus on optimizing cash flow and reducing debt costs, supported by ample working capital lines.

Jal Jeevan Mission (JJM) Update

The company is closely monitoring developments related to the Jal Jeevan Mission, acknowledging that the scheme's execution has been impacted by state-level issues, including corruption and CBI matters, and delays in fund releases. Management is hopeful for positive news from the upcoming Union Budget on February 1, 2026, which could normalize the situation and restart the supply chain for water infrastructure projects, potentially adding to business opportunities not backed by central government funds.

Export Market Focus

In response to domestic market challenges, particularly in the DI pipe segment, Jindal Saw is intensifying its export efforts. The company aims to increase its export share in the DI sector, which was previously minimal (less than 5%), and is exploring new export opportunities for seamless pipes, especially in the MENA region. This strategy leverages its existing and upcoming facilities in Abu Dhabi and Saudi Arabia to build foundational demand and strengthen business resilience against domestic market volatility.

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