Jindal Stain.

Jindal Stainless Limited delivered a strong Q3 FY26, with sales volume growing by 11% year-on-year. This growth was primarily fueled by sustained domestic demand across key sectors such as automotive, railways, metro projects, and white goods. Consolidated EBITDA increased by 17% year-on-year and 1% quarter-on-quarter to Rs. 1408 crores, while consolidated PAT rose 27% year-on-year and 2% quarter-on-quarter to Rs. 828 crores. The company maintained its full-year EBITDA per ton guidance of Rs. 19,000-21,000, having already achieved an average of Rs. 21,300 in the first nine months of FY26.

The company demonstrated continued financial discipline, reducing its consolidated net debt to Rs. 3451 crores as of December 31, 2025. This significant deleveraging resulted in a healthy net debt-to-EBITDA ratio of 0.67 and a net debt-to-equity ratio of 0.18. Management expressed confidence that the year-end net debt would be around or even lower than the current figure, further strengthening the balance sheet. An interim dividend of Rs. 1 per share for FY26, totaling Rs. 82.44 crores, was also approved.

JSL's strategic focus on value-added products led to an increase in CR output, with the CRAP percentage of overall sales reaching 55%, up from 50% a year ago. The HRAP:CRAP ratio also shifted favorably from 40:60 in Q3 FY24 to 30:70 in Q3 FY26. On the sustainability front, JSL achieved an S&P Global Corporate Sustainability Assessment score of 78 out of 100 for FY25, placing it among the top 5% in the steel sector globally. Renewable power utilization at Jajpur and Hisar facilities increased to 56% of total imported power.

Management highlighted concerns over the temporary suspension of Quality Control Orders (QCOs), which has led to import surges of subsidized inferior materials and circumvention. The company is actively pursuing Anti-Dumping Duty (ADD) investigations and advocating for the reinstatement of QCOs. Global trade sentiments remain subdued due to geopolitical uncertainties and protectionist measures in key western markets, prompting JSL to strategically prioritize the domestic market for EBITDA maximization.

For FY26, JSL has a CapEx guidance of Rs. 2700 crores, with Rs. 2200 crores already spent in the first nine months. The SMS project in Indonesia and aligned downstream capacity expansion in India are progressing as per schedule. The 2-20 high mills are targeted for commissioning by the end of FY27 (Q3 in Jajpur), and HAPL commissioning activities are expected to ramp up in Q4 FY26. Maintenance CapEx for all plants is estimated at Rs. 500 crores annually.

JSL is well-prepared for the Carbon Border Adjustment Mechanism (CBAM), having secured top ESG ratings globally. However, the company awaits clarity from the European Union on verification methodology and the appointment of verifiers, expecting more clarity in Q4 FY26. The NPI venture is projected to contribute profitability in the range of $500 to $1,500 per metric ton of nickel, with Q3 hitting around $900. JSL's share of the NPI plant's design capacity is 14,000 tons of nickel at 100% utilization.