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    Jindal Stain.

    JSL
    Metals & Mining·7 Aug 2025
    Management Summary

    Jindal Stainless reported a strong Q1 FY26 with an 8% YoY increase in deliveries and significant QoQ and YoY growth in EBITDA and PAT, driven by sustained domestic demand and an improved product mix. The company successfully reduced net debt and maintained healthy leverage ratios. Strategic initiatives like co-branding and digitization are progressing, while major CAPEX projects like HRAP and the Maharashtra expansion remain on track, with Chromeni ramping up utilization and becoming EBITDA positive.

    Highlights

    5

    • Deliveries stood at 626,252 metric tons in Q1, an increase of 8% year-on-year basis, mainly supported by sustained domestic demand.

    • Q1 EBITDA increased 8% Y-o-Y and 23% Q-o-Q to Rs. 1,310 crores, driven by enhanced product mix and increased volumes of value-added products.

    • PAT stood at Rs. 715 crores, an increase of 11% Y-o-Y and 21% on Q-o-Q basis.

    • Net debt reduced to Rs. 3,869 crores as of June 30, 2025, improving the net-to-debt EBITDA ratio to 0.81 and net debt-to-equity to 0.22.

    • Chromeni capacity utilization reached 60-65% for Q1 FY26 and is targeted to reach 80-85% by H2, contributing positively to EBITDA.

    Concerns

    2

    • The global trade environment is extremely dynamic, driven by tariff disruptions and ongoing realignment of global trade flows, leading to strategic prioritization of the domestic market over exports.

    • Nickel price volatility makes it difficult to predict future trends, though management expects it to remain stable at Rs. 14,000 to Rs. 16,000.

    What Changed1

    vs Q3 FY26

    Guidance items9 → 10 (+1)

    Key financials

    Single quarter

    06 metrics
    1. 01Deliveries6,26,252 metric tons+8%YoY
    2. 02EBITDA₹1,310 Cr+8%YoY
    3. 03PAT₹715 Cr+11%YoY
    4. 04Net Debt₹3,869 Cr
    5. 05Net Debt to EBITDA Ratio0.81 ratio

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹665 crores this quarter · ₹2,700 crores (FY26) planned

    Debt

    Net ₹3,869 crores · 0.8x EBITDA

    M&A

    Indonesia assets (equipment)

    divestment · closed · Consideration ₹NaN (cash)

    Guidance & targets

    10
    CategoryTargetPriority
    Volume
    Volume Growth
    9-10%
    		High
    Profitability
    EBITDA per ton
    Rs. 19,000 to Rs. 21,000
    		High
    Capacity Utilization
    Chromeni Capacity Utilization
    80-85%
    		High
    Capacity Utilization
    Overall Capacity Utilization
    80-85%
    		High
    Product Mix
    Total CR Capacity as % of Melting Capacity
    at least 75%
    		Medium
    Raw Material Prices
    Nickel Price Range
    Rs. 14,000 to Rs. 16,000
    		Medium
    Capex
    Total CAPEX
    Rs. 2,700 crores
    		High
    Capex
    Total CAPEX
    Rs. 1,000 - Rs. 1,200 crores
    		Medium
    Project Timeline
    Maharashtra Project Phase-1 Commissioning
    FY29-30
    		Medium
    Project Timeline
    HRAP Commissioning
    H2 FY27
    		High

    Chromeni Capacity Utilization

    H2 FY26
    Current60-65%
    Target80-85%

    Why it matters

    Chromeni's ramp-up is a key driver for improved product mix and EBITDA contribution.

    In H2, we intend to take it to around 80% - 85%.

    How to verify

    guidance_and_targets[metric='Chromeni Capacity Utilization']

    Risks & concerns

    4
    RiskSeverity

    Global trade environment dynamics and tariff disruptions

    The global trade environment is extremely dynamic, driven by tariff disruptions and ongoing realignment of global trade flows, leading to strategic prioritization of the domestic market. — Management acknowledged

    medium

    Nickel price volatility

    Nickel price fluctuations are present, making it difficult to predict, though management expects prices to remain stable at Rs. 14,000-16,000. — Management acknowledged

    medium

    Uncertainty in the export market

    The export market is highly uncertain due to global factors, leading the company to prioritize domestic demand and only export for good margins. — Management acknowledged

    medium

    Substandard imports

    Historically, substandard Chinese materials have been an issue, but BIS norms are now restricting inferior quality products, which is a welcome move for the domestic industry. — Management acknowledged

    low

    Q&A highlights

    8

    “So, Rathi, now we are almost running at 80% - 85% of capacity utilization. While definitely our original plan was to produce more of rebar from there and sell it, but so far, we have not been able to do so. Majority of our production, almost 70% of the production is the wire rod. So, but our endeavor is to get more and more into rebar, and that is what as a Company we are continuously making efforts. And on CAPEX front, like so far as the spending is concerned, we have given a guidance of around Rs. 2,700 crores CAPEX for this FY ‘26. So, out of which in Q1, we have already spent around 665. Broadly, all the CAPEX part in-line with the timeline what has been given earlier.”

    Clarifies Rathi's current utilization and product mix, and confirms CAPEX spend is on track with previous guidance.

    asked by Amit Dixit

    3 min read6 chapters

    Detailed Narrative

    01

    Q1 FY26 Business Performance and Volume Growth

    Jindal Stainless reported strong business performance in Q1 FY26, with deliveries reaching 626,252 metric tons. This represents an 8% year-on-year growth and remained steady quarter-on-quarter, primarily driven by sustained domestic demand. Key segments such as auto, lift elevators, railways, and white goods delivered healthy performance, with auto sector deliveries increasing due to special grade materials. The company's Special Product division continued to support this momentum across various applications.

    02

    Financial Highlights and Balance Sheet Strength

    The company's Q1 FY26 EBITDA stood at Rs. 1,310 crores, marking an 8% year-on-year increase and a 23% quarter-on-quarter growth. Net profit after tax (PAT) also saw significant improvement, rising 11% YoY and 21% QoQ to Rs. 715 crores. On the balance sheet front, net debt was reduced to Rs. 3,869 crores as of June 30, 2025. This led to a healthy net-to-debt EBITDA ratio of 0.81 and a net debt-to-equity ratio of 0.22, underscoring the company's commitment to maintaining a robust financial position amidst global macroeconomic headwinds.

    03

    Strategic Initiatives and Product Mix Enhancement

    Jindal Stainless benefited from an enhanced product mix in Q1, with increased volumes of value-added products and special grades contributing to profitability. The company's digitization initiatives, including the stainless mart and QR code loyalty program for pipe and tube, are driving deeper customer engagement. Following the success of its co-branding initiative in the pipe and tube sector, the 'Jindal Saathi' campaign has been extended to kitchenware and sink categories, aiming to enhance business opportunities and reinforce quality commitment.

    04

    Sustainability and Compliance Efforts

    The company continues to make strong progress in decarbonization, achieving a 14% reduction in Scope 1 and Scope 2 GHG emissions in FY25. Jindal Stainless received the LEED Platinum Certification, the highest level under the LEED Green Building Rating System, reaffirming its commitment to sustainability. The company is fully compliant with CBAM's quarterly reporting requirements and remains dedicated to reducing CO2 emissions, ensuring continued service to the European market with transparency and sustainability focus.

    05

    Trade Measures and Domestic Market Focus

    In response to dynamic global trade conditions, Jindal Stainless is strategically prioritizing the domestic market, which offers compelling growth opportunities. The Indian Stainless Steel Development Association has submitted an application to DGTR for action on cold rolled stainless steel flat products from China, Vietnam, and Indonesia. Management is hopeful for the earliest initiation of investigation, expecting appropriate measures to curb injury to the domestic industry. The implementation of BIS norms is also helping restrict inferior quality products from entering the country, benefiting the domestic industry.

    06

    Capital Expenditure and Project Updates

    The company's CAPEX for FY26 is guided at Rs. 2,700 crores, with Rs. 665 crores already spent in Q1. This includes Rs. 1,700 crores for new projects, Rs. 500 crores for maintenance, and Rs. 500 crores as spillover. The HRAP project is on track for commissioning in H2 FY27. The Maharashtra project, envisaged as a 4 million ton facility in phases, targets Phase-1 commissioning by FY29-30, with land acquisition progressing, though no CAPEX has been finalized yet. Chromeni, a subsidiary, is ramping up capacity utilization, reaching 60-65% in Q1 FY26 and targeting 80-85% by H2 FY26, and has become EBITDA positive.

    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.