Jindal Stainless Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

Jindal Stainless Limited delivered a strong Q3 FY26 performance, marked by significant growth in sales volume, EBITDA, and PAT, driven primarily by robust domestic demand. The company continued its deleveraging efforts, achieving a healthy net debt-to-EBITDA ratio. While global trade uncertainties and regulatory challenges like QCO suspension and CBAM clarity remain concerns, JSL is progressing with capacity expansions and sustainability initiatives, reaffirming its full-year profitability guidance.

Highlights

  • Sales volume in Q3 FY26 grew by 0.11 YoY, supported by sustained domestic demand.

  • Consolidated EBITDA for Q3 FY26 increased by 0.17 YoY and 0.01 QoQ to Rs. 1408 crores.

  • Consolidated PAT for Q3 FY26 increased by 0.27 YoY and 0.02 QoQ to Rs. 828 crores.

  • Consolidated net debt reduced to Rs. 3451 crores as of December 31, 2025, resulting in a net debt-to-EBITDA ratio of 0.67 and net debt-to-equity ratio of 0.18.

  • Declared an interim dividend of Rs. 1 per share, totaling Rs. 82.44 crores.

  • Renewable power utilization at Jajpur and Hisar facilities reached 56% of total imported power in Q3 FY26.

Concerns

  • Global trade sentiments remain subdued due to ongoing uncertainties and protectionist measures in key western markets.

  • Subsidized inferior materials continue to enter India, and the temporary suspension of QCOs is a concern.

  • Uncertainty persists regarding the verification methodology and verifiers for the Carbon Border Adjustment Mechanism (CBAM) from the European Union.

Key financials

3 periods

Headline

  • Net Debt
    ₹3,451 Cr
  • Net Debt-to-EBITDA
    0.67
  • Net Debt-to-Equity
    0.18

Q3

  • Deliveries
    0.65 million tonnes
    YoY +11%
  • Consolidated EBITDA
    ₹1,408 Cr
    YoY +17% QoQ +1%
  • Consolidated PAT
    ₹828 Cr
    YoY +27% QoQ +2%

9M

  • Deliveries
    1.92 million tonnes
    YoY +11%
  • Consolidated EBITDA
    ₹4,106 Cr
    YoY +14%
  • Consolidated PAT
    ₹2,350 Cr
    YoY +23%

What they filed

Q1 FY27: revenue up 3.2%, net profit down 5.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue9,746 10,066 10,786 10,341 10,881 +12%10,632 +6%10,826 +0%10,677 +3%
EBITDA1,007 1,003 890 1,048 1,060 +5%1,103 +10%1,111 +25%1,028 −2%
Net profit589 619 925 642 644 +9%666 +8%892 −4%606 −6%
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.

Capital allocation

high confidence
  • Capex ₹2,700 Cr
    Okay, so we had given a guidance of 2,700 crores as a CapEx for the whole financial year FY26. 2,200 crores we have already done and we are on course of completing or ending with around 2,700 crores of CapEx in FY26.
  • Debt Net ₹3,451 Cr · 0.7× EBITDA
    As of December 31, 2025, our consolidated net debt has further reduced to Rs. 3451 crores, with a net debt-to-EBITDA ratio at 0.67, comfortably below 1, and a net debt-to-equity ratio of 0.18, reflecting our disciplined approach to financial management.
  • Dividend ₹1/share (interim)
    I would also like to inform that the Board of Directors have approved an interim dividend payment for FY26 of Rs. 1 per share with a face value of Rs. 2 each, aggregating to a payout of nearly Rs. 82.44 crores. The record date for the purpose of payment has been set as January 29, 2026.

Guidance & targets

Profitability

  • EBITDA per metric ton Profitability · FY26 · High confidence Rs. 19,000-21,000
    So, far as our profitability part is concerned, whatever guidance we have provided for the year, Rs. 19,000 to 21,000 per metric ton is what we had given. We have delivered in nine months an average of around 21,300 and we believe that this year on an average basis around this number we should be closing.

    — Mr. Tarun Kumar Khulbe

  • NPI venture profitability Profitability · Ongoing · Medium confidence $500-1500/metric ton
    But still, we had indicated for our nickel venture, we had given a guidance of around $500 to $1,500 range for metric ton of nickel. And Quarter 3, we have hit somewhere around $900. And we expect, if the nickel prices remain high, so we should be on the higher side of this range.

    — Mr. Tarun Kumar Khulbe

Volume

  • Volume growth Volume · FY26 · High confidence Meet guidance
    So, whatever guidance we had given in terms of volume growth and EBITDA per ton, we are extremely confident of meeting those numbers.

    — Mr. Abhyuday Jindal

  • 2-3 year volume growth target and plans Volume · Q4 FY26 · Medium confidence To be announced
    And if you just give us one more quarter, then by Q4, I will come out with, let's say, next 2-3year volume growth target and plans.

    — Mr. Abhyuday Jindal

Debt

  • Net debt Debt · FY26 · High confidence Around Rs. 3451 crores or slightly lower

    Previously Rs. 3500-3700 crores → Around Rs. 3451 crores or slightly lower

    So our net debt as of now at the end of the Quarter 3 is 3,451 crores. Now, when we had provided a guidance at the beginning of the year, we had estimated to be closing the year in the range of 3,500 to 3,700 crores. But now, looking at the current situation, we believe that this year we should be closing somewhere around where we are already or maybe a bit even lower than what net debt position we have at the end of Quarter 3.

    — Mr. Tarun Kumar Khulbe

Capex

  • Total CapEx Capex · FY26 · High confidence Rs. 2700 crores
    Okay, so we had given a guidance of 2,700 crores as a CapEx for the whole financial year FY26. 2,200 crores we have already done and we are on course of completing or ending with around 2,700 crores of CapEx in FY26.

    — Mr. Tarun Kumar Khulbe

Capacity

  • Chromeni utilization Capacity · This year · High confidence 90-95%

    From 75% today

    So, Chromeni is around, I would believe, 75% right now. Rathi is close to 80%. And the target, as always, is to further increase them to atleast 90-95% this year.

    — Mr. Abhyuday Jindal

  • Rathi utilization Capacity · This year · High confidence 90-95%

    From 80% today

    — Mr. Abhyuday Jindal

  • SMS plant (Indonesia) melt shop commissioning Capacity · H1 FY27 · High confidence Very soon
    So, two things. First, to answer your question, it is on course and I think very soon we will be announcing the commissioning of the melt shop. It is definitely on track or, in fact, slightly better.

    — Mr. Tarun Kumar Khulbe

  • Jajpur downstream expansion (2-20 high mills) commissioning Capacity · FY27 · High confidence Q3 FY27
    They should get operation or should get commission in the middle of quarter... end of next year. End of FY27. End of FY27. We target Q3 in Jajpur.

    — Mr. Tarun Kumar Khulbe

  • HAPL commissioning activities Capacity · FY27 · High confidence Initiated in Q3 FY27, ramping up Q4 FY27
    And then in the same quarter, the HAPL also will start getting... the commissioning activities should get initiated. And beginning or in Q4, I think it should start ramping up.

    — Mr. Tarun Kumar Khulbe

  • NPI venture nickel equivalent capacity (JSL share) Capacity · Ongoing · High confidence 14,000 tons
    So, nickel equivalent... the plant capacity is around 28,000 tons of nickel design capacity, because we have around 50% or 49% of share. So, okay, roughly 14,000 at the 100% capacity utilization.

    — Mr. Tarun Kumar Khulbe

What to watch in Q4 FY26

Clarity on QCO extension

Next month (February 2026)
Current Extended till March 2026
Target Decision on further extension or reinstatement

Why it matters

Direct impact on domestic market protection against subsidized imports.

So, QCO, they have given an extension till March. So, I would expect definitely by next month, we should be hearing something on whether they are extending it or not.

Risks & concerns

  • Subsidized inferior material imports and QCO suspension

    high

    Temporary suspension of QCOs led to import surges, posing a setback for quality-focused domestic industry, company is hopeful for government intervention including anti-dumping duties.

    Management acknowledged

  • Global trade uncertainties and protectionist measures

    medium

    Subdued global trade sentiments and protectionist measures in key western markets (US, EU) create uncertainty for exports, leading the company to prioritize the domestic market.

    Management acknowledged

  • Clarity on CBAM verification methodology

    medium

    While threshold levels and calculation methodologies are out, the verification process and verifier identity are still unclear from the EU, causing confusion for customers.

    Management acknowledged

  • Volatility in raw material prices (Nickel)

    medium

    Nickel prices were softer in Q3 but started rising in December/January, impacting realizations, though the company generally passes on costs with a lag and uses back-to-back hedging.

    Management acknowledged

Q&A highlights

6 direct
Government protection mechanisms (QCO, Anti-dumping duty) Direct
Anti-dumping duty investigation is on. We are hopeful that the government will give us some relief... QCO is definitely required for the entire industry. It will uplift the sentiment. It will increase more investment in this industry for us. So, both sides we are working. One is on anti-dumping duty, which we feel next few quarters we should get some positive response. And the QCO relaxation should not be extended further.

Highlights ongoing regulatory efforts and the company's stance on critical trade protection measures impacting domestic industry.

Asked by Amit Dixit, GS

Profitability outlook for Q4 and FY26, impact of raw material prices Direct
So, far as our profitability part is concerned, whatever guidance we have provided for the year, Rs. 19,000 to 21,000 per metric ton is what we had given. We have delivered in nine months an average of around 21,300 and we believe that this year on an average basis around this number we should be closing.

Reaffirms full-year EBITDA/ton guidance despite raw material volatility and provides an update on current performance against that guidance.

Asked by Amit Dixit, GS

Export performance and geopolitical factors Direct
So, definitely as we are all aware, export is a very uncertain situation because of the geopolitical factors... It is more from our customer side because of this lack of clarity that is there, whether Mr. Trump everyday wakes up and announces something new, plus CBAM is on our head... So, export is more on account of global geopolitical situations.

Explains the strategic shift towards the domestic market due to external uncertainties and protectionism, impacting export volumes.

Asked by Alok Deora, Motilal Oswal

CBAM impact and verification process Partial
No, what we said that in CBAM, the European Union has come out with threshold levels and calculation methodologies. But what they have not yet come out with the verification methodology and who is going to verify the calculations... So that is why we are also waiting for this process to be absolutely clearer.

Highlights the ongoing uncertainty and lack of clarity from the EU regarding CBAM verification, which is critical for export strategy.

Asked by Satyadeep Jain, Ambit Capital

Longer-term volume growth path and future plans Partial
We don't have to wait after this time for, let's say, till our Maharashtra project comes up. We are already forming up our plans of further downstream investment. And if you just give us one more quarter, then by Q4, I will come out with, let's say, next 2-3year volume growth target and plans.

Indicates upcoming strategic announcements regarding future growth and expansion plans, beyond current projects.

Asked by Vikas Singh, ICICI Securities

Net debt trajectory and CapEx for FY26 Direct
So our net debt as of now at the end of the Quarter 3 is 3,451 crores. Now, when we had provided a guidance at the beginning of the year, we had estimated to be closing the year in the range of 3,500 to 3,700 crores. But now, looking at the current situation, we believe that this year we should be closing somewhere around where we are already or maybe a bit even lower than what net debt position we have at the end of Quarter 3.

Provides an updated and more optimistic outlook on net debt reduction for the fiscal year end, demonstrating strong financial management.

Asked by Vikas Singh, ICICI Securities

Timelines for SMS plant commissioning and Jajpur downstream expansion Direct
They should get operation or should get commission in the middle of quarter... end of next year. End of FY27. End of FY27. We target Q3 in Jajpur. And then in the same quarter, the HAPL also will start getting... the commissioning activities should get initiated. And beginning or in Q4, I think it should start ramping up.

Provides specific timelines for key capacity expansion projects, crucial for future volume growth.

Asked by Ritwik Sheth, One Up Financial Consultants

Annual maintenance CapEx Direct
Yeah, it is around Rs. 500 crores that we have it for all the plants.

Provides a key operational cost figure for modeling and understanding ongoing capital requirements.

Asked by Ritwik Sheth, One Up Financial Consultants

3 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Performance Driven by Domestic Demand

Jindal Stainless Limited reported a robust Q3 FY26 with sales volume growing 11% year-on-year and remaining steady quarter-on-quarter. Consolidated EBITDA increased by 17% year-on-year and 1% quarter-on-quarter to Rs. 1408 crores, while PAT grew 27% year-on-year and 2% quarter-on-quarter to Rs. 828 crores. This performance was underpinned by consistent demand from key domestic sectors such as automotive, railways, and white goods, with 9M FY26 deliveries reaching 1.92 million tonnes, an 11% YoY increase.

Strategic Prioritization of Domestic Market Amidst Global Headwinds

The company strategically prioritized the domestic market due to subdued global trade sentiments and protectionist measures in key western markets like the US and EU. Management noted that the uncertainty surrounding factors like CBAM and US trade policies led to a lack of clarity for customers, impacting export orders. Despite these challenges, JSL maintained its market share through competitive pricing and customer-focused initiatives like JSL Saathi Pragati.

Balance Sheet Strengthening and Capital Expenditure Plans

JSL continued to improve its financial health, reducing consolidated net debt to Rs. 3451 crores as of December 31, 2025. The net debt-to-EBITDA ratio stood at a healthy 0.67, and net debt-to-equity at 0.18. For FY26, the company expects to close net debt around the current level or slightly lower, an improvement from the initial guidance of Rs. 3500-3700 crores. The total CapEx for FY26 is guided at Rs. 2700 crores, with Rs. 2200 crores already spent in the first nine months.

Progress on Capacity Expansion and Product Mix Enhancement

Key expansion projects are progressing as planned, with the SMS project in Indonesia and downstream capacity expansion in India on track. The commissioning of the SMS melt shop is expected very soon, and the 2-20 high mills for downstream expansion at Jajpur are targeted for commissioning by Q3 FY27. These initiatives are contributing to an improved product mix, with the CRAP percentage of overall sales increasing to 55% from 50% a year ago, and the HRAP:CRAP ratio shifting to 30:70 in Q3 FY26 from 40:60 in Q3 FY24.

Regulatory Landscape and Sustainability Achievements

The company highlighted concerns regarding the temporary suspension of Quality Control Orders (QCOs), which led to import surges, and is hopeful for government intervention, including anti-dumping duties. On the sustainability front, JSL achieved an S&P Global Corporate Sustainability Assessment score of 78 out of 100 for FY25, ranking it among the top 5% in the steel sector and 4th globally. Renewable power utilization at Jajpur and Hisar facilities reached 56% of total imported power in Q3 FY26, demonstrating a commitment to cleaner operations.

Outlook on Raw Material Prices and Future Growth Strategy

While average nickel prices were softer in Q3, they began rising in December and January, influencing stainless steel prices which typically follow raw material movements. Management reiterated confidence in meeting the full-year EBITDA per ton guidance of Rs. 19,000-21,000. The company plans to announce its 2-3 year volume growth target and detailed plans by Q4 FY26, indicating a clear roadmap for future expansion and market penetration.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Metals & Mining earnings calls