Jindal Stainless Limited — Q4 FY26 earnings call

Call held 9 May 2026

Management summary

Jindal Stainless delivered strong Q4 and FY26 results, marked by an 8% YoY volume growth and significant increases in EBITDA and PAT. The company successfully commissioned its Indonesia melt shop, expanding total melting capacity to 4.2 million tons, and maintained a robust financial position with reduced net debt. Despite challenges from geopolitical energy disruptions and the temporary QCO suspension, JSL is actively implementing mitigation strategies and remains confident in its growth trajectory and market leadership.

Highlights

  • Sales volume in FY26 grew by 8% year-on-year, reaching 2.57 million tons, driven by sustained domestic demand.

  • Q4 consolidated EBITDA increased by 37% year-on-year to INR1,455 crores, and consolidated PAT grew 41% year-on-year to INR834 crores.

  • The company's net debt reduced to INR3,040 crores, resulting in a strong net debt-to-EBITDA ratio of 0.55x and net debt-to-equity of 0.15.

  • The 1.2 million tons per annum stainless steel melt shop in Indonesia was commissioned ahead of schedule, boosting total melting capacity to 4.2 million tons per annum.

  • A final dividend of INR3 per share was recommended, bringing the total FY26 payout to approximately INR330 crores.

Concerns

  • Geopolitical uncertainties in the Middle East led to disruptions in energy supply (propane, LPG, natural gas) and increased costs.

  • The temporary suspension of the Quality Control Order (QCO) is a setback, potentially allowing substandard imported materials to enter the market.

  • Inferior imported materials continue to enter India at a large scale, posing a challenge to domestic industry players.

Key financials

2 periods

Q4

  • Deliveries
    0.64 million tons
    YoY 0%
  • Consolidated EBITDA
    ₹1,455 Cr
    YoY +37% QoQ +3%
  • Consolidated PAT
    ₹834 Cr
    YoY +41% QoQ +1%

FY26

  • Deliveries
    2.57 million tons
    YoY +8%
  • Consolidated EBITDA
    ₹5,560 Cr
    YoY +19%
  • Consolidated PAT
    ₹3,185 Cr
    YoY +27%

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.

Segment breakdown

Segment200 Series300 Series400 Series
4QFY26 Series Mix38%43%19%
FY26 Series Mix37%46%18%

Capital allocation

high confidence
  • Capex ₹2,600 Cr
    • Augmenting cold rolling capacities at Hisar and Kharagpur ₹900 Cr
    • Stainless steel melt shop in Indonesia
    • HRAP line and CRAP line at Jajpur
    • Stainless steel fabrication facility in Patalganga ₹125 Cr
    For FY27, our capex guidance is around INR2,600 crores for FY27. ... The 1.2 million tons per annum at the stainless steel melt shop in Indonesia is successfully commissioned ahead of schedule... In parallel, downstream expansion projects in India are advancing as planned, including the upcoming commissioning of 1.1 million tons per annum HRAP line and 0.17 million tons per annum CRAP line at Jajpur. To further strengthen downstream integration, the company announced an additional INR900 crores commitment towards augmenting cold rolling capacities at Hisar and Kharagpur. ... Jindal Stainless Steelway Limited, a subsidiary of JSL Group, has commenced operations at its first stainless steel fabrication facility in Patalganga near Mumbai. Built with an initial investment of approximately INR125 crores...
  • Debt Net ₹3,040 Cr · 0.6× EBITDA
    As of March 31, 2026, our consolidated net debt has further reduced to INR3,040 crores with a net debt-to-EBITDA ratio at 0.55x, comfortably below 1, and a net debt-to-equity ratio of 0.15, reflecting our disciplined approach to financial management.
  • Dividend ₹3/share (final)
    I'm pleased to announce that, in addition to an interim dividend for FY26 of INR1 per share, the Board has recommended a final dividend of INR3 per share with a face value of INR2 each, subject to approval of shareholders at the ensuing Annual General Meeting, aggregating to a payout of nearly INR330 crores in total for FY26.

Guidance & targets

Volume

  • Volume Growth Volume · FY27 · High confidence 7% to 9%
    So in terms of volume growth for FY27, we are expecting at least 8% to 10% growth -- 7% to 9% growth in volume this year.

    — Abhyuday Jindal

  • Sales Volume Volume · by FY29 · High confidence 3.5 million tons per annum
    This integrated expansion will support our sales volume target of 3.5 million tons per annum by FY29, translating into a robust double-digit compounded growth over the next 3 years.

    — Tarun Khulbe

  • Export Share Volume · FY27 · Medium confidence 8% to 10%
    still we should be able to manage a share of 8% to 10% of exports in that increased volume.

    — Tarun Khulbe

Profitability

  • EBITDA per ton Profitability · H1 FY27 · High confidence INR18,000 to INR20,000
    And for EBITDA per ton, looking at the kind of uncertainty there is, till H1 of this year, we are giving a guidance of INR18,000 to INR20,000 EBITDA per ton.

    — Abhyuday Jindal

Capacity

  • Total Melting Capacity Capacity · Current · High confidence 4.2 million tons per annum
    The 1.2 million tons per annum at the stainless steel melt shop in Indonesia is successfully commissioned ahead of schedule, taking the company's total melting capacity to 4.2 million tons per annum, including 3 million tons per annum in India.

    — Tarun Khulbe

  • CRAP Capacity Capacity · by FY28 · High confidence 2.67 million tons per annum
    be enhanced, increasing CRAP capacity to 2.67 million tons per annum by FY28 and aligning the expanded melt capacity with downstream readiness.

    — Tarun Khulbe

Capex

  • Capex Capex · FY27 · High confidence INR2,600 crores
    For FY27, our capex guidance is around INR2,600 crores for FY27.

    — Tarun Khulbe

Capacity Utilization

  • Indonesia Melt Shop Ramp-up Capacity Utilization · FY27 · High confidence 70% to 80%
    So now the ramp-up has started. We believe that gradually the ramp-up will take place and up to 70%, 80% of the capacity should ramp up in this financial year.

    — Tarun Khulbe

What to watch in Q1 FY27

EBITDA per ton guidance revision

After H1 FY27
Current INR18,000-20,000 for H1 FY27
Target Revised guidance for H2 FY27 / full FY27

Why it matters

Will indicate management's updated outlook on profitability amidst cost volatility and market conditions.

And depending on the situation, maybe after 6 months we might revise this figure also.

Risks & concerns

  • Geopolitical uncertainties affecting energy supply and costs

    high

    Middle East situation caused disruptions in propane, LPG, natural gas supply, leading to higher costs, but availability has picked up at a higher cost.

    Management acknowledged

  • Temporary suspension of Quality Control Order (QCO)

    medium

    QCO suspension opens gates for substandard imports, negatively impacting domestic MSMEs and quality-focused players, creating confusion in the industry.

    Analyst acknowledged

  • Inferior imported materials

    medium

    Inferior imported materials continue to enter India at a large scale, and the company is working on anti-dumping measures.

    Management acknowledged

  • Carbon Border Adjustment Mechanism (CBAM) for exports to EU

    medium

    CBAM imposes costs on carbon-intensive imports into the EU; company is geared up (85%+ scrap, renewable energy, green hydrogen) and awaiting EU verifiers.

    Analyst acknowledged

Q&A highlights

6 direct, 1 evasive
FY27 Volume Growth & EBITDA/ton Guidance Direct
So in terms of volume growth for FY27, we are expecting at least 8% to 10% growth -- 7% to 9% growth in volume this year. And for EBITDA per ton, looking at the kind of uncertainty there is, till H1 of this year, we are giving a guidance of INR18,000 to INR20,000 EBITDA per ton.

Provides key forward-looking financial metrics for the next fiscal year and clarifies the H1 focus for EBITDA/ton due to market uncertainty.

Asked by Parthiv Jhonsa

Impact of Middle East Crisis on Costs & EBITDA Direct
So, in terms of at least, because availability has picked up at a higher cost, we don't see availability as a challenge in the month of May, but cost has significantly gone up. ... So again it's the same thing. We still stick to our blended guidance. Despite this cost going up, we're still confident of delivering INR18,000 to INR20,000.

Addresses a key geopolitical risk and its immediate impact on energy costs, confirming management's confidence in maintaining EBITDA/ton guidance despite these pressures.

Asked by Parthiv Jhonsa

Regulatory Environment (QCO Suspension) & Expansion Confidence Direct
This is true that this QCO, which was to ensure a certain quality level of product being produced and used within the country, suspension of that opens the gate for the import of substandard products as well and this definitely impacts the sentiment and creates a confusion among the stainless steel industry... But we, as a company, believe that we should be ready to serve these requirements in the future.

Addresses a significant regulatory concern impacting the domestic industry and explains management's confidence in expansion despite the lack of government support on this front.

Asked by Amit Dixit

Defense Sector Contribution & Product Development Evasive
So Amit, defense being such a critical area, I would not like to share on an open forum what kind of products or applications we are working on. But it's in a variety of areas, from land systems to air systems to drones in every area, to our always with our satellite launches we're all part of. And if I can say more, focus is more towards aerospace, that's where we see good traction coming in, and we see good volumes coming in.

Highlights a new strategic growth area (defense, especially aerospace) but indicates the sensitive nature of information, suggesting potential for future growth without specific numbers.

Asked by Amit Dixit

Maharashtra Greenfield Project Timeline & Capex Direct
Yes. So, absolutely, as you said, exactly the first process is on land acquisition, and a substantial portion has been acquired already, but we still expect most of this year to go into land acquisition. And then we will start, as you mentioned. First, we would like to put up downstream capacity, and subsequently, very fast come up with upstreaming as well. But I would still -- still every day this is being worked upon, and probably we need another few months to come out with a clear-cut plan. But absolutely, as of now, land acquisition is in full force in Maharashtra at the moment.

Provides a clear update on the progress and sequencing of the significant Maharashtra expansion project, indicating land acquisition is the immediate focus.

Asked by Ritesh Shah

Indonesia JV (RKEF) Profitability & Slab Utilization Direct
So, RKEF business, that is the nickel business. ... But with the sharp increase in nickel in the last quarter, the actual EBITDA has come around $3,000 per ton. ... So at this stage, our intent is to bring the slabs to India and then process them over here.

Clarifies the high profitability of the RKEF business in Q4 FY26 due to nickel price surge and the strategy to import slabs to India for processing, crucial for value chain integration.

Asked by Ritesh Shah

Mitigation of Energy Cost Volatility Direct
East India, we will look towards coal gasification and syngas, pipe natural gas wherever we can include, and also to replace ammonia, we are going for green hydrogen. ... So in a way, we have started taking actions on multiple fronts. So that in the future we are not impacted by any disruption. At least our risk is mitigated.

Details the company's multi-pronged strategy to diversify energy sources and reduce reliance on volatile fuels, addressing a key operational risk.

Asked by Ritesh Shah

3 min read 6 chapters

Detailed narrative

Robust Q4 and FY26 Performance

Jindal Stainless reported strong financial results for Q4 FY26, with consolidated EBITDA increasing by 37% year-on-year to INR1,455 crores and PAT growing by 41% year-on-year to INR834 crores. For the full fiscal year 2026, sales volume reached 2.57 million tons, an 8% increase year-on-year. This contributed to a 19% rise in consolidated EBITDA to INR5,560 crores and a 27% increase in PAT to INR3,185 crores, primarily driven by sustained domestic demand across various sectors.

Strategic Capacity Expansion and Downstream Integration

The company successfully commissioned its 1.2 million tons per annum stainless steel melt shop in Indonesia ahead of schedule, bringing the total melting capacity to 4.2 million tons per annum. In India, downstream expansion projects are advancing, including the upcoming commissioning of 1.1 million tons per annum HRAP line and 0.17 million tons per annum CRAP line at Jajpur. An additional INR900 crores has been committed to augment cold rolling capacities at Hisar and Kharagpur, aiming to increase CRAP capacity to 2.67 million tons per annum by FY28 and support a sales volume target of 3.5 million tons per annum by FY29.

Enhanced Brand Presence and Market Development

JSL launched a nationwide multimedia campaign, 'Jindal Infinity,' and onboarded Ranveer Singh as its first-ever brand ambassador to strengthen its consumer-facing presence and address issues of counterfeiting and quality opacity. These initiatives are expected to enhance brand equity and drive demand creation, particularly as consumption-led applications of stainless steel scale up across India. The company also noted increased traction in the passenger coach segment and higher activity in metro projects, with metro demand expected to jump 2x to 3x over the next 3-4 years.

Resilient Financial Health and Shareholder Returns

Jindal Stainless demonstrated strong financial discipline, reducing its consolidated net debt to INR3,040 crores as of March 31, 2026. This resulted in a healthy net debt-to-EBITDA ratio of 0.55x and a net debt-to-equity ratio of 0.15. The Board recommended a final dividend of INR3 per share, in addition to an interim dividend of INR1 per share, totaling approximately INR330 crores in payout for FY26, reflecting confidence in sustained performance.

Navigating Geopolitical Headwinds and Regulatory Challenges

The company acknowledged geopolitical uncertainties, particularly the Middle East situation, which impacted energy costs and supply chains for industrial fuels like propane, LPG, and natural gas. To mitigate this, JSL is diversifying its energy mix, exploring coal gasification, syngas, and green hydrogen. A key concern raised was the temporary suspension of the Quality Control Order (QCO), which allows substandard imports and creates challenges for domestic players, though JSL remains hopeful for government intervention and continues to pursue anti-dumping measures.

Commitment to Sustainability and ESG Excellence

JSL continues its focus on sustainability, achieving an EcoVadis score of 71 out of 100 in Q4 FY26, earning a bronze medal recognition. The company is also advancing its decarbonization goals with the partial commissioning of a 315-megawatt solar/wind hybrid power project in collaboration with Oyster Renewable Energy, reinforcing its commitment to a cleaner and more resilient energy mix.

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