Synopsis:
Jindal Stainless reported a resilient Q1FY26 performance with steady domestic demand and rising profitability. Operating profit rose 25.5 percent sequentially, while net profit jumped 21.2 percent. Sales volume improved by 8.3 percent YoY. Despite export headwinds, the company maintained its global footprint through innovation and customer centric strategies.
A metal stock witnessed selling pressure after its Q1 FY26 results despite an improvement in profitability, as geopolitical concerns continued to weigh on investor confidence.
The shares of Jindal Stainless Ltd with a market cap of Rs. 58,582.37 crore, opened at Rs. 737.90 against the previous close of Rs. 733.95 and fell as much as 7.07 percent intraday to hit a low of Rs. 682.05.
What’s the News?
Quarter-on-Quarter, Revenue from operations stood flat at Rs. 10,207 crore compared to Rs. 10,198 crore in Q4FY25. Operating profit rose from Rs. 1,033 crore to Rs. 1,296 crore, marking a growth of 25.5 percent.
Profit before tax increased from Rs. 729 crore to Rs. 969 crore, up by 32.9 percent, while net profit jumped 21.2 percent from Rs. 590 crore to Rs. 715 crore. The operating profit margin for the quarter stood at 13 percent.
Year-on-Year, Revenue increased by 8.2 percent from Rs. 9,430 crore to Rs. 10,207 crore. Operating profit improved by 7.1 percent from Rs. 1,210 crore to Rs. 1,296 crore. Profit before tax rose by 9.4 percent from Rs. 886 crore to Rs. 969 crore. Net profit grew by 10.6 percent from Rs. 646 crore to Rs. 715 crore.
Also Read: Stock in focus after company announces weak Q1 results
Management Commentary
Commenting on the performance of the company, Managing Director, Jindal Stainless, Mr. Abhyuday Jindal, said,
“Despite continued volatility in the global landscape, Jindal Stainless has reinforced its market leadership underpinned by our customer-centric approach, sustained product and special grades innovation, and continued operational efficiency.
We are advancing our presence across high-impact sectors such as railways, automotive, and infrastructure, while unlocking new opportunities across the sectors through strategic partnerships and application-driven offerings.
Our initiatives, like co-branding programmes and loyalty scheme,s are redefining customer engagement and operational agility. As stainless steel gains recognition as the material of choice for nation building, the need for a dedicated national stainless steel policy becomes increasingly imperative.”
Operational Highlights
The company achieved a sales volume of 6,26,252 tonnes in Q1FY26, registering an 8.3 percent growth on a year-on-year basis. Net debt stood at Rs. 3,869 crore, while the net debt-to-equity ratio remained healthy at 0.2x. On the domestic front, demand was strong across key sectors such as automotive, metro rail, white goods, and elevators, supported by the government’s infrastructure push.
In contrast, export sales remained stable despite global headwinds stemming from protectionist policies and geopolitical uncertainty in the EU and US, which dampened trade sentiment. Jindal Stainless countered these challenges through focused global customer engagement and value-added offerings.
The domestic market accounted for 91 percent of total sales in Q1FY26, compared to 92 percent in Q4FY25 and 90 percent in Q1FY25. Exports contributed the remaining 9 percent in Q1FY26, versus 8 percent in Q4FY25 and 10 percent in Q1FY25.
Other Key Developments
Jindal Stainless made notable strides in product innovation during the quarter. It manufactured and dispatched its first commercial batch of 9Cr1Mo plate, produced for the first time in India, to BHEL for steam generator applications.
The company also completed the export of a new martensitic grade (1.4110) developed for knife applications and manufactured a high Nickel 304 grade with restricted ferrite content for L&T’s structural applications.
Jindal Stainless reported an annual turnover of Rs. 40,182 crore (USD 4.75 billion) in FY25 and is targeting an annual melt capacity of 4.2 million tonnes by FY27. With 16 manufacturing and processing facilities globally, including in Spain and Indonesia, and a presence in 12 countries, the company maintains a robust domestic footprint through ten sales offices and six service centres. Its product portfolio spans slabs, coils, plates, precision strips, and more.
Written By Manan Gangwar
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