Jindal Stainless Ltd
(NSE:JSL)
₹
734.65
+2.15 (+0.29%)
Market Cap: 605.36 Bil
Enterprise Value: 647.00 Bil
PE Ratio: 18.66
PB Ratio: 3.06
GF Score: 84/100 
Q1 2027 Jindal Stainless Ltd Earnings Call Transcript
Aug 04, 2026 / 10:30AM GMT
Release Date Price:
₹735.65
(+0.54%)
Key Points
Positve
- Jindal Stainless Ltd (BOM:532508) reported a resilient financial performance in Q1 FY27, with revenue, EBITDA, and PAT growing year-on-year by 10.5%, 1.4%, and 7.7%, respectively, despite a challenging operating environment.
- The company's balance sheet strengthened further, with consolidated net debt reduced to INR 2,950 crores, resulting in a low net debt-to-EBITDA ratio of 0.53x and a net debt-to-equity ratio of 0.14x.
- Jindal Stainless Ltd (BOM:532508) is actively diversifying its energy mix by introducing pipe natural gas (PNG) to its Jajpur plant, with similar plans for Hisar and Ghaziabad, to mitigate risks from supply disruptions like the industrial gas crisis.
- The company is making progress on its expansion plans, with all announced CapEx projects on track, including the ramp-up of its 1.2 MTPA stainless steel melt shop in Indonesia and the commissioning of new downstream cold rolling capacities to reach 2.6-2.7 million tonnes by FY28.
- Jindal Stainless Ltd (BOM:532508) is successfully expanding into new, high-margin export markets such as Japan, South Korea, and Brazil, which helps in maximizing EBITDA and mitigating risks from geopolitical issues in other regions.
- The company's focus on value-added products and a favorable product mix, particularly in the 300 series grades, helped support profitability during the quarter despite lower volumes.
- Jindal Stainless Ltd (BOM:532508) continues to make progress on its sustainability goals, with its Hisar facility achieving a 12% year-on-year reduction in greenhouse gas emission intensity through energy-efficient upgrades and waste heat recovery systems.
- The company is expanding its green hydrogen capacity, with a 600 Nm3/hr project at Jajpur expected to be commissioned in the current quarter, furthering its long-term net-zero ambitions.
- Demand for stainless steel remains strong in key domestic sectors like automotive, railways, metros, and white goods, and the company is confident that whatever it produces will be sold, with production back to pre-crisis levels.
- The management is actively engaging with the government on antidumping duties and quality control orders (QCO), with a public hearing scheduled for September 9, which could lead to a more favorable regulatory environment for the company.
Negative
- Jindal Stainless Ltd (BOM:532508)'s finished goods sales volume declined by 7.3% year-on-year in Q1 FY27, primarily due to severe industrial gas shortages and logistics uncertainties caused by the Middle East crisis.
- The company faced significant cost inflation from industrial gas prices, which spiked up to 3x normal levels, and it was unable to pass on 100% of the increase to customers due to a lag in the pass-through mechanism.
- The company's capacity utilization was impacted, falling to around 69-70% at the end of Q1 due to the gas supply disruptions, and management indicated that a full recovery to normal volumes would be gradual over the next few quarters.
- The export environment remains challenging due to evolving trade policies, geopolitical developments, and the implementation of the EU's CBAM, which has led to reduced quotas for European exports.
- The company's subsidiary, Rathi Steel, saw its performance impacted by the fuel crisis, resulting in lower capacity utilization during the quarter, although it had previously been operating at around 80%.
- The management has deferred providing a clear volume growth guidance for FY27, stating it will only provide fresh numbers after Q2, creating uncertainty for investors.
- The progress on the proposed Maharashtra investment is slower than expected, with land acquisition taking time, and the company needs another 1-2 quarters to provide a detailed plan.
- The company's EBITDA per tonne guidance of INR 18,000-20,000 for H1 FY27 remains unchanged, but management acknowledged that the gas price increase could not be fully passed on, potentially putting pressure on margins.
- The transition of PT GMI from a subsidiary to an associate company, effective July 1, 2026, means its financials will no longer be consolidated line-by-line, which could reduce the transparency of its operational performance.
- The company's export mix is not expected to increase significantly in the near term, as domestic market remains the priority, and new markets like Japan and South Korea will take time to scale up volumes.
Operator
Ladies and gentlemen, good day, and welcome to Jindal Stainless Limited Q1 FYF27 earnings conference call hosted by Anand Rathi Shares and Stock Brokers Limited.
(Operator Instructions) Please note that this conference is being recorded. I now hand over the conference call to Mr. Parthiv from Anand Rathi Share and Stock Brokers. Thank you, and over to you, sir.
Parthiv Jhonsa
Anand Rathi Financial Services Ltd - Analyst
Thank you, Parin. Good evening, everyone. And on behalf of Anand Rathi Group, I thank the management team of Jindal Stainless for this opportunity to host their Q1 FY27 earnings conference call. We have the following members of the management with us today. We have Mr.
Abhyuday Jindal, Managing Director; Mr. Tarun Khulbe, CEO and Whole Time Director; Mr. Kunjal Mehta, CFO; Mr. Kapil Arora, EVP, Finance; Mr. Angad Khurana, Head, Investor Relations; along with Mr. Abhishek Tami, who is also part of IR team.
I now hand over the call to Mr. Angad Khurana to take the conference call forward, followed by which we will
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