Jindal Stain.

Jindal Stainless reported a record Q4 sales volume of 642,641 metric tons, marking a 13% YoY and 9% QoQ increase, driven by robust domestic demand. For the full year FY25, the company achieved its highest ever sales volume, growing 9% YoY, despite a 24% decline in exports. Q4 EBITDA stood at Rs. 1,061 crores, with EBITDA per ton dropping below Rs. 14,000, attributed to unfavorable global economic conditions, stainless steel pricing pressure, and negative inventory valuation. The company expects a recovery in EBITDA per ton in Q1 FY26 and guides for Rs. 19,000-21,000 per ton for FY26.

The company acquired a 9.62% stake in M1xchange, an RBI-licensed TReDS platform, to digitize its supply chain, reduce working capital, and provide cheaper credit access across its global value chain. On the ESG front, JSL commissioned a 30-megawatt captive solar plant in Orissa, projected to reduce CO2 emissions by 32,000 metric tons annually and lower reliance on conventional grid electricity. Additionally, an 11-megawatt long-term power purchase agreement was signed for its subsidiary, JSL Super Steel, contributing to the group's target of 30-35% renewable energy consumption from the current 11%.

JSL signed an MOU with the Government of Maharashtra for a significant long-term investment, planning a new plant with a capacity of 4 million tons over 15 years. This decision was influenced by strong state support, incentives, and proximity to a large customer base. Existing facilities are also ramping up; Chromeni, acquired recently, is currently at 55-60% capacity utilization and is targeted to reach 70-75% by Q3/Q4 FY26. The Rathi plant is operating at 75% utilization, focusing on stainless-steel rebar production for infrastructure projects.

Management acknowledged the global oversupply and volatility in nickel prices, which impacted Q4 profitability. They highlighted that their Indonesia JV for nickel pig iron (NPI) is a strategic move to ensure raw material security, especially given global protectionism and bans on scrap/nickel ore exports. The company's NPI project is ramping up, with a breakeven nickel price estimated around LME > Rs. 14,500-15,000, positioning them with one of the lowest production costs globally.

JSL is actively engaging with the Indian government to address the high volume of stainless steel imports. The company is preparing to apply for anti-dumping duties within the current month, expecting a provisional duty to be announced within 3-6 months. This measure is anticipated to improve both volume and margins, especially after trade uncertainties, including Trump tariffs, impacted export bookings and forced higher domestic volumes at lower margins in FY25.

The company maintained a strong balance sheet, with net debt at Rs. 4,005 crores as of March '25 and a net debt to EBITDA ratio of 0.86, despite a significant FY25 CAPEX of Rs. 4,570 crores (including acquisitions). For FY26, the projected CAPEX is Rs. 2,700-2,800 crores, which includes spillover from FY25 and planned maintenance CAPEX. JSL estimates its net debt to be in the range of Rs. 3,500-3,700 crores by the end of FY26, demonstrating continued focus on working capital optimization and debt management.