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Informist, Thursday, Jul. 30, 2026

 

By Shreya Shetty

 

MUMBAI - Jindal Stainless Ltd.'s June quarter performance is expected to be driven by higher steel prices and strong realisation, which are likely to largely offset higher cost of production due to higher coking coal and iron ore prices, according to analysts. While revenue is expected to grow on year due to strong domestic demand, a seasonally weak quarter is expected to drag it down from the March quarter, they said.

 

The stainless-steel maker's standalone net profit for the June quarter is estimated at INR 7.24 billion, up nearly 13% on year, according to the average of estimates from 10 brokerages. The highest estimate for the company's bottom line is INR 7.73 billion by 360 ONE Capital Market Pvt Ltd., while the lowest estimate is INR 6.70 billion from Motilal Oswal Financial Services Ltd. The company's revenue is estimated at INR 105.79 billion, up more than 2% from the previous year, according to brokerages' estimates. The highest estimate for revenue is INR 114.64 billion by Anand Rathi Share and Stock Brokers Ltd., while the lowest is INR 94.91 billion by Ambit Capital Pvt Ltd.

 

From the March quarter, the company's net profit is expected to rise over 2%, while revenue is seen down more than 2%. Jindal Stainless had reported a standalone net profit of INR 7.09 billion on revenue of INR 108.26 billion for the March quarter. For the year-ago quarter, it had reported a standalone net profit of INR 6.42 billion on revenue of INR 103.41 billion.

 

June quarter production costs remained high due to higher iron ore and coking coal costs, though these were partly offset by higher average blended realisation, according to analysts. Elevated domestic hot-rolled coil prices and strong stainless steel prices are also expected to offset the surge in nickel prices, according to Motilal Oswal.

 

"Strong domestic demand is expected to cushion the near-term weakness in overseas markets, while improving fuel availability and shift to LNG (liquid natural gas) since May has supported normalisation in operations," Prabhudas Lilladher said in a report.

 

Though the company's shift to LNG in May helped regularise its operations, gas shortages in April are expected to have impacted production, according to analysts. The company may report a volume loss equivalent to 20 days of production during the quarter owing to the gas shortage issues, ICICI Securities said. Most brokerages see a decline in the company's volumes from the previous year in the range of 6–7%, due to disruption in production due to the gas shortages. A seasonally weak quarter is also likely to hit volumes.

 

The company's earnings before interest, tax, depreciation, and amortisation for the reporting quarter are seen at INR 12.63 billion, up nearly 21% on year and 14% on quarter, the estimates from eight brokerages showed. Estimates for the company's EBITDA range from a high of INR 13.10 billion by Systematix Shares and Stocks (India) Ltd. to a low of INR 12.30 billion by Motilal Oswal. Three brokerages see the company's EBITDA per tonne rise in the range of 2–4% on year and down 3.8-6.0% on quarter to INR 21,282-INR 21,814. "Higher realisation and better cost management have resulted in sequentially stable EBITDA per tonne, despite the volume loss," ICICI Securities said in a report.

 

The company will announce its June quarter earnings on Monday. Analysts will track management's comments on the EBITDA per tonne trajectory, guidance, and progress on downstream expansion projects.

 

Thursday, the company's shares closed at INR 737.75, up 1.27% on the National Stock Exchange. Since reporting its March quarter earnings, the company's shares have declined more than 5%. 

 

Of the eight research reports on the company available with Informist, six have a ‘buy' recommendation on the stock, with an average target price of INR 872, up nearly 18% from the current market price, while two have a hold rating on the stock with an average target price of INR 843.

 

Following are the June earnings estimates for Jindal Stainless Ltd. from 10 brokerages in descending order of net profit in INR billion:

 

Brokerages	Net Sales	Net Profit	EBITDA
360 ONE Capital Market Pvt. Ltd.	107.22	7.73	-
Nuvama Wealth Management Ltd.	105.33	7.56	12.71
Prabhudas Lilladher Pvt. Ltd.	106.90	7.50	12.70
Systematix Shares and Stocks (India) Ltd.	107.00	7.50	13.10
Elara Securities (India) Pvt Ltd.	109.50	7.35	12.57
JM Financial Institutional Securities Pvt. Ltd.	104.06	7.13	12.31
Anand Rathi Share and Stock Brokers Ltd.	114.64	7.05	-
Ambit Capital Pvt. Ltd.	94.91	6.94	12.54
ICICI Securities Ltd.	105.00	6.94	12.82
Motilal Oswal Financial Services Ltd.	103.40	6.70	12.30
Average	105.79	7.24	12.63

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Himanshi Gupta

 

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