Financial Performance Q1 FY27 (Quarter ended June 30, 2026)

Standalone Results:

  • Total Income: ₹3,756 crores (up 13% YoY from ₹3,327 crores in Q1 FY26)
  • EBITDA: ₹341 crores (down 40% YoY from ₹560 crores)
  • PBT: ₹145 crores (down 53% YoY from ₹307 crores)
  • PAT: ₹110 crores (down 70% YoY from ₹364 crores)

Consolidated Results:

  • Total Income: ₹4,476 crores (up 9% YoY from ₹4,103 crores)
  • EBITDA: ₹421 crores (down 39% YoY from ₹688 crores)
  • PBT: ₹148 crores (down 60% YoY from ₹364 crores)
  • PAT: ₹91 crores (down 78% YoY from ₹415 crores)

Debt Position (as of June 30, 2026)

  • Standalone Net Debt: ₹2,345 crores (reduced from ₹2,453 crores as of March 31, 2026)
  • Includes ₹526 crores long-term debt (₹500 crores from LIC NCD repayable in 3 equal installments in FY28, FY29, FY30)
  • Consolidated Net Institutional Debt: ₹2,472 crores (reduced from ₹2,528 crores)
  • Long-term debt component: ₹536 crores

Credit Rating Update

CARE Ratings affirmed in June 2026:

  • CARE A1+ for short-term debt facilities including commercial paper
  • CARE AA with Stable Outlook for long-term facilities

No change from previous ratings.

Operational Challenges

Geopolitical Impact:

  • All outward shipments to Middle East suspended since March 2026 due to geopolitical situation between US and Iran blocking Strait of Hormuz
  • Short-lived diplomatic breakthrough in mid-June offered hope, but subsequent collapse of peace talks limited short-term visibility
  • Few export shipments to non-MENA regions deferred to Q2 FY27 due to heavy traffic at Indian ports

Domestic Market:

  • Water segment remained weak due to Jal Jeevan mission-linked project execution delays
  • Delayed release of central funds and title scrutiny of state projects affected execution
  • Multiple states reported pending dues and slowed project timelines

API License Suspension:

  • Seamless pipe business impacted by API license suspension from January 2026 until mid-June 2026
  • Limited ability to participate in certified oil and gas orders during the quarter
  • API reinstatement enables resumption of API-certified seamless pipe supplies and tender participation

Order Book and Capacity Utilization

  • Overall capacity utilization at approximately 60-65% (similar to FY26 levels)
  • Abu Dhabi subsidiary holds order book of $188 million (177,000 tons) ensuring 3-4 quarters visibility
  • Export order book composition: 60% from Middle East, 40% from non-Middle East markets

Middle East Expansion Projects

Abu Dhabi Seamless Pipe Plant:

  • 300,000 ton state-of-the-art seamless pipe manufacturing facility
  • Estimated project cost: $300 million
  • Project execution commenced with secured leasehold land and existing civil infrastructure
  • Procurement for critical long-lead equipment underway with LCs opened and cash advances placed
  • Financial closure expected in next few months
  • Commercial operation expected in FY29
  • Expected utilization: 50-60% in first year

Saudi Arabia SAW Pipe JV:

  • Strategic joint venture with Buhur of KSA (Jindal Saw 51%, Buhur 49%)
  • Establishing advanced LSAW and HSAW pipe mills of 300,000 metric tons per annum each
  • Project land secured and LC established for selected equipment
  • Interim financial closure expected within next few months
  • Construction time line: 18-24 months
  • Expected utilization: 50% of capacity (150,000 tons each project)

Subsidiary Performance

Abu Dhabi Operations:

  • Operations disrupted due to regional conflicts in MENA
  • Operations reduced to meet essential demand with employee safety priority
  • Sales restricted to customers within trucking range only
  • Q1 FY27 delivery: 34,000 metric tons of ductile pipe (vs 48,000 tons in Q4 FY26)

Jindal Hunting JV:

  • JV between Hunting Energy Services Singapore and Jindal Saw (51% stake)
  • Q1 FY27 revenue: ₹5 crores
  • Q1 FY27 loss: ₹5.3 crores (first time loss due to API license suspension)
  • Performance expected to improve gradually with API license reinstatement

Legal Update

Jindal ITF vs NTPC court case:

  • Arguments closed at double bench of Delhi High Court
  • Order reserved and expected within maximum two months
  • Courts currently on vacation

Management Guidance

Volume Outlook:

  • FY27 volumes expected to remain at similar levels as FY26
  • Monthly dispatches from Middle East expected at 10,000-12,000 tons per month via road
  • Domestic water sector showing some strength from state-driven projects

Margin Outlook:

  • H1 FY27 expected to remain soft due to geopolitical situation and domestic water industry challenges
  • H2 FY27 expected to show improvements over H1
  • Margin pressure due to lower facility utilization affecting fixed overhead absorption

Interest Cost:

  • Q1 interest cost: ₹70-75 crores (primarily on working capital and term loan)
  • Stable rupee exchange rate in Q1 vs sharp depreciation in Q4 FY26
  • Similar run rate expected going forward assuming rupee volatility remains contained

Capacity Utilization Targets:

  • Seamless Nashik unit: Expected to reach 70,000-80,000 tons quarterly by October 2026
  • API-related sales expected to resume gradually

Debt Projections:

  • Current term debt: ₹500+ crores
  • Expected peak term debt after project completion: ₹3,500 crores (excluding working capital)
  • Gradual increase expected as projects progress

Strategic Initiatives

  • Exploring new geographic markets beyond MENA region (Europe, Southeast Asia, CIS, Latin America)
  • Qualifying for hydrogen transportation pipes (API 5L with minimum yield strength of 70,000 psi)
  • Manufacturing stainless steel coil tubing for specific customer requirements
  • Diversifying export markets to de-risk concentration in Middle East