Summary
Jindal Stainless Limited - Q3 FY26 Earnings Call Summary Thursday, January 22, 2026 4:00 PM
Event Participants
Executives 3 Abhyuday Jindal (Managing Director), Shreya Sharma (Head of IR), Tarun Kumar Khulbe (CEO, CFO and Whole-time Director)
Analysts 6 Alok Deora (Motilal Oswal), Amit Dixit (GS), Parthiv (Anand Rathi), Rajesh Majumdar (360 ONE Capital), Ritwik Sheth (One Up), Vikas Singh (ICICI Securities)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Sales Volume | 0.65 million tonnes | +11% YoY; Consistent domestic demand in auto, railways, and white goods offset export weakness. |
| Revenue | Not Explicitly Stated | Derived from ASP of ₹1,61,000 per tonne; impacted by lower nickel prices and series mix shift. |
| EBITDA | ₹1,408 crores | +17% YoY, +1% QoQ; Nine-month FY26 EBITDA stood at ₹4,106 crores (+14% YoY). |
| PAT | ₹828 crores | +27% YoY, +2% QoQ; Driven by operational efficiencies and improved subsidiary performance. |
| EBITDA/Tonne | ₹21,300 (9M Avg) | Management guided a full-year range of ₹19,000–₹21,000 per tonne. |
| Net Debt | ₹3,451 crores | Reduced from previous levels; Net Debt-to-EBITDA at 0.67x and Net Debt-to-Equity at 0.18x. |
| Net Debt/EBITDA | 0.67x | Reflects disciplined financial management; remains comfortably below the target of 1.0x. |
| CapEx | ₹2,200 crores (9M) | Full-year FY26 target maintained at ₹2,700 crores. |
Geographic & Segment Commentary
- Domestic Market: Performance remained consistent with strong traction from automotive, ornamental pipes, railways, and white goods. The company launched “JSL Saathi Pragati” to verify product authenticity for fabricators. Railway demand grew due to design revisions in Vande Bharat sleeper blocks and new Amrit Bharat coach orders.
- Exports: Contribution to total volume declined due to geopolitical uncertainties, US/EU protectionist measures, and lack of clarity on CBAM. Management is strategically prioritizing the domestic market for EBITDA maximization while waiting for global trade sentiment to stabilize.
- Subsidiaries: All subsidiaries contributed positively to EBITDA. Chromeni and NPI units saw ramp-ups in capacity utilization (Chromeni at ~75%), while JUSL faced a temporary shutdown for maintenance during the quarter.
Company-Specific & Strategic Commentary
- Sustainability & ESG: JSL achieved an S&P Global CSA score of 78/100, ranking 4th globally in the steel sector. Renewable power utilization reached 56% of total imported power at Jajpur and Hisar facilities.
- Import Concerns: Management expressed concern over the suspension of Quality Control Orders (QCOs), leading to an influx of subsidized, inferior materials. The company is actively pursuing Anti-Dumping Duty (ADD) investigations, with results expected in H1 FY27.
- Downstream Expansion: The acquisition of Chromeni has shifted the sales mix toward Cold Rolled (CRAP) products, moving from 30% to 70% of the HRAP:CRAP ratio over three years.
- Raw Material Integration: The Indonesian Nickel Pig Iron (NPI) venture achieved profitability of ~$900/tonne of nickel in Q3; the SMS project in Indonesia remains on track for H1 FY27 commissioning.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| EBITDA/Tonne | ₹19,000 - ₹21,000 | Full-year FY26 guidance; currently trending at the higher end based on 9M performance. |
| Net Debt | ₹3,451 - ₹3,600 crores | FY26 year-end outlook; expected to stay flat or reduce slightly despite ongoing CapEx. |
| Sales Volume | 10-15% CAGR | Directional outlook; management will provide a formal 3-year growth roadmap in Q4 FY26. |
| CapEx | ₹2,700 crores | Total spend for FY26; ₹2,200 crores already deployed by Q3. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory/Trade | Global protectionism and the EU’s Carbon Border Adjustment Mechanism (CBAM) create uncertainty for exports. Verification methodologies for CBAM emissions are still unclarified by the EU. |
| Cheap Imports | Surge in subsidized imports from China/ASEAN due to QCO relaxations. JSL is lobbying for the non-extension of these relaxations beyond March. |
| Commodity Volatility | Fluctuations in Nickel and Ferrochrome prices impact ASP. While JSL uses back-to-back hedging for nickel-bearing grades, a 30-45 day lag in price passing remains. |
Q&A Highlights
Trade Protection & Imports
- Question: What is the status of government protection against unfairly priced imports? (Amit Dixit)
- Answer: Safeguard duties were rejected due to a lack of a sudden “surge,” but Anti-Dumping Duty (ADD) investigations are ongoing with hope for relief in H1 FY27. Management is also pushing for QCO enforcement to stop circumvention (Abhyuday Jindal).
Product Mix & Realization
- Question: Why did ASP drop while volumes remained steady? (Parthiv)
- Answer: The blended ASP of ₹1,61,000/tonne was impacted by a 4% shift from 300 series to 200 series and softer nickel prices in Q3. However, CRAP now makes up 70% of the downstream mix, up from 60% YoY (Tarun Khulbe).
CBAM Impact
- Question: How is JSL preparing for CBAM and what are the internal emission numbers? (Satyadeep Jain)
- Answer: JSL is a scrap-based producer with high ESG rankings, which mitigates risk. However, no EU-authorized verifiers have been appointed yet, meaning default emission values may apply initially. Specific internal numbers were not disclosed pending EU methodology clarity (Abhyuday Jindal).
NPI Venture Profitability
- Question: What is the profitability of the NPI venture in Indonesia? (Rajesh Majumdar)
- Answer: The venture achieved ~$900/tonne EBITDA in Q3 against a long-term guidance of $500-$1,500/tonne. At 100% capacity, JSL’s 49% share equates to ~14,000 tonnes of nickel equivalent (Tarun Khulbe).
Key Takeaway
Jindal Stainless Limited delivered a resilient Q3 FY26, characterized by an 11% YoY volume growth to 0.65 million tonnes and a 17% YoY increase in EBITDA to ₹1,408 crores. Despite a 4.5% decline in blended ASP due to lower nickel prices and a temporary shift toward the 200 series mix, domestic demand stayed robust across automotive and railway segments. Strategically, JSL successfully transitioned its downstream mix to 70% cold-rolled products following the Chromeni integration. The company’s balance sheet remains strong with Net Debt/EBITDA at 0.67x, providing headroom for the Indonesian SMS project (H1 FY27 commissioning) and upcoming Jajpur downstream expansions. While export markets remain clouded by CBAM and US protectionism, management is confident in maintaining an EBITDA/tonne of ₹19,000–₹21,000. Investors should monitor the H1 FY27 timeline for Anti-Dumping Duty implementation and the official 3-year growth guidance expected in the next quarter.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: