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Informist, Tuesday, Aug. 4, 2026

 

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--Jindal Stainless: Demand from railways robust in Q1 
--CONTEXT: Comments by Jindal Stainless mgmt in post-earnings analyst call 
--Jindal Stainless: Positive on automobile demand in FY27 
--Jindal Stainless: Continue to proactively track geopolitical developments 
--Jindal Stainless: Shortage of gas impacted output in first week of Q1 
--Jindal Stainless: On track to meet 3.5 mln tn sales volume target by FY29 
--Jindal Stainless: Sticking to EBITDA/tn goal of INR 18,000-INR 20,000 
--Jindal Stainless: Q1 volume would have been better if no West Asia crisis 
--Jindal Stainless: Waiting for EU to apply verifiers for carbon tax 
--Jindal Stainless: FY27 capex at INR 28 bln, to spend on downstream capacity 
--Jindal Stainless: Absolute clarity on Maharashtra plant in 1-2 qtrs 
--Jindal Stainless: Targeting South Korea, Japan, Brazil for exports 
--Jindal Stainless: Don't see major increase in exports in global markets 
--Jindal Stainless: To export only high value products 
--Jindal Stainless: Targeting maximising supply in domestic market 
--Jindal Stainless: Talks with govt on anti-dumping duty moving positively 
--Jindal Stainless: Public hearing on anti-dumping on steel pdts on Sept 9 
--Jindal Stainless: Quota likely to impact more than carbon tax in EU 
--Jindal Stainless: Targeting 70-80?pacity utilisation for Indonesia plant 
 

 

By Astha Oriel and Narayana Krishna 

 

NEW DELHI/HYDERABAD – Jindal Stainless Ltd. will stick to its 8-10% volume growth guidance for the Apr-Sept period, a senior company official told analysts at a post-earnings conference call on Tuesday. "So as of now, because we have given our guidance for H1 (Apr-Sept), we would still like to stick to the numbers that we had begun the year with. And we are quite confident that we should be able to achieve them. But if any change is there, then in H2 (Oct-Mar), I would be coming up with fresh numbers," the official said. 

 

The company is also sticking with its EBITDA per tonne guidance of INR 18,000–INR 20,000 for the Apr-Sept period. "We would still be sticking to the guidance that we started with. And if any change is required at the end of next quarter, I will come back with fresh numbers," the official said. 

 

For Apr-Mar (2026-27), the company has kept INR 28 billion for capital expenditure, as it focuses on downstream and more value-added products. The company's main focus is to increase its downstream finishing core loading capacities, the official said. "So by next year, you will see an increase from 2 million tonnes to at least 2.67 million tonnes in our downstream core loading capacities. So actually, our CAPEX plan for this year is also what we have provided guidelines for, around INR 2,800 crores (INR 28 billion), which is on course. And all this is basically to create this downstream more value-added product," Jindal Stainless management said. 

 

The company is on track to meet its 3.5 million tonnes per annum sales volume by FY29, according to the management. The company's June quarter finished product volume was 581,000 tonnes as against 626,000 metric tonnes, impaired by the shortage of liquefied petroleum gas, according to the management. "... the gas crisis that impacted production balance in the first few weeks of the quarter impacted our finished goods sales volume, which was down by 7.3% year-on-year. Amid severe gas shortage during the first few weeks of FY26, JSL's (Jindal Stainless Ltd.'s) focus remained on value-added product mix and thinner product segments during the quarter, supporting the company's profitability," management said. 

 

The company's June-quarter production volume would have been better in the absence of the West Asia crisis and the liquefied petroleum gas shortage, management said. "I mean, definitely, if you ask, if the situation had been calm, then we would have delivered on our volume guidance and volume growth as we had discussed. So that is the major impact that we saw.... So both margins and volume would have been better. Volume definitely would have been better," management said. 

 

"Unavailability of industrial gases and logistical challenges negatively impacted industrial activity last quarter, and while the situation has improved, we continue to proactively track developments on these fronts," management said. 

 

Despite the challenging environment, the company saw robust demand from the railways and automotive segments. "Even in an uncertain macro environment, sales grew in automotive, appliances and white goods, railways and metro segments," management said, adding that it is positive on automobile demand in FY27.

 

For its India operations, the company will get more clarity regarding its Maharshtra plant in 1-2 quarters, as per Jindal Stainless. "In India, land acquisitions, particularly at this scale at which we are trying or we have to looking at the kind of plant we have to set up, takes a little bit of time. Maybe give us another one or two quarters and then we'll come out with our detailed plan on the Maharashtra. Things are progressing well," the management said. The company is targetting to increase its cold rolled coil capacity to 2.67 million tonnes by FY28. For its Indonesia plant, the company is targetting 70-80?pacity utilisation, as per the management. 

 

For its international business, the company is expanding its focus on Japan, South Korea, and Brazil as these countries can improve the company's margins. "We are only targeting these markets if we are seeing substantial margin improvement and margin increase in those areas. Because two things, as a philosophy, I always mention. The domestic market is our focus and priority. And second is EBITDA (earnings before interest, tax, depreciation, and amortisation) maximisation. So in these geographies, we will only go, and we will sell limited products," the management said, adding that it will focus on exporting high-value products. 

 

The company, however, doesn't see a major increase in export percentage, as it is targeting to maximise supply in the domestic market. "So that's why the maximum allocation will be given to the domestic market and then only we will look at export. Because these geographies will take a little longer time to increase our volume," the company said. 

 

On the Carbon Border Adjustment Mechanism by the European Union, the management said the company is waiting for the European Union to appoint the verifiers. "We have kept ourselves absolutely ready. We have got all the verifiers that are internationally accredited already with us. What we are waiting for is still the European Union to appoint the verifiers," the company said. 

 

Europe accounts for 30-40% of the company's total volume mix. The company is also confident of meeting the quota requirements by the European Union. The management, however, pointed out that unlike the Carbon Border Adjustment Mechanism, the quota is likely to have a larger impact on the company in the European Union. "... it is not CBAM (Carbon Border Adjustment Mechanism) that is going to impact our numbers in any way. It is more that this quota that has come. That is why European numbers (exports) will look lesser than what it was a year," the management said.

 

On anti-dumping duty, the management said discussions with the government are moving in a positive direction. The public hearing in this regard is on Sept. 9. "This (public hearing) is a part of the process. I think they call everybody from producers, consumers, importers, exporters, because they want everybody's opinion and points to be taken. And then they move ahead from there," Jindal Stainless management said. 

 

For the June quarter, the company's standalone net profit fell nearly 6% on year to INR 6.06 billion on revenue of INR 106.77 billion. Tuesday, shares of the company closed 0.5% higher at INR 735.65 on the National Stock Exchange. End

 

Edited by Saji George Titus

 

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