Financial Performance (Standalone)

Q2 FY27 (Quarter Ended September 30, 2026):

  • Gross Revenue: ₹3,881 crores, up 3% quarter-on-quarter (QoQ) and 14% year-on-year (YoY).
  • EBITDA: ₹265 crores, down from ₹341 crores in Q1 FY27 and ₹335 crores in Q2 FY26.
  • Finance Expenses: ₹92 crores, which includes a negative forex impact of ₹15 crores. Normalized finance cost was ₹77 crores.
  • Profit After Tax (PAT): ₹71 crores, compared to ₹110 crores in Q1 FY27 and ₹80 crores in Q2 FY26. This includes a tax credit of ₹27 crores received during the quarter.

H1 FY27 (Half-Year Ended September 30, 2026):

  • Gross Revenue: ₹7,637 crores, up 13% YoY from ₹6,736 crores in H1 FY26.
  • EBITDA: ₹606 crores, down from ₹894 crores in H1 FY26.
  • Finance Costs: ₹163 crores, down from ₹239 crores in H1 FY26.
  • Profit Before Tax (PBT): ₹189 crores, down from ₹412 crores in H1 FY26.
  • Profit After Tax (PAT): ₹181 crores, compared to ₹443 crores in H1 FY26. This reflects a tax expense of ₹8 crores versus a tax credit of ₹31 crores in the prior year period.

Financial Performance (Consolidated)

Q2 FY27:

  • Gross Income: ₹4,523 crores, up 0.8% QoQ from ₹4,476 crores and up 6% YoY from ₹4,264 crores.
  • EBITDA: ₹312 crores, down from ₹420 crores in Q1 FY27 and ₹482 crores in Q2 FY26.
  • Finance Expenses: ₹125 crores, up 15.7% QoQ from ₹108 crores, but lower than ₹153 crores in Q2 FY26.
  • PBT (after JV share): ₹14 crores, compared to ₹143 crores in Q1 FY27 and ₹183 crores in Q2 FY26.
  • PAT: ₹35 crores, compared to ₹91 crores in Q1 FY27 and ₹139 crores in Q2 FY26. PAT surpassed PBT due to a ₹27 crores tax credit.

H1 FY27 (Consolidated):

  • Gross Income: ₹8,999 crores (expansion of 8% mentioned, base not specified).
  • EBITDA: Declined by 37% leading to a 5.9 percentage point contraction in EBITDA margin to 8%.
  • Finance Costs: Reduced by 27.8% to ₹234 crores.
  • PBT (after JV share): Fell 72% to ₹157 crores.
  • PAT: Fell 77% (specific figure not provided).

Debt and Credit Profile

  • Standalone Net Debt: Reduced to ₹2,245 crores as of September 30, 2026, from ₹2,346 crores on June 30, 2026. This includes long-term debt of ₹522 crores (NCDs subscribed by LIC, repayable in 2028, 2029, and 2030).
  • Consolidated Net Institutional Debt: Reduced to ₹2,174 crores from ₹2,473 crores as of June 30, 2026. Long-term debt was ₹532 crores as of June 30, 2026.
  • Credit Rating: CARE Ratings affirmed 'CARE A1+' for short-term debt facilities (including commercial paper) and 'CARE AA' with a Stable Outlook for long-term debt facilities in June 2026.

Reasons for Weaker Performance

Management cited a combination of factors for the compressed profitability:

1. Geopolitical Tensions: Ongoing conflicts in West Asia, particularly recent escalations in Saudi Arabia, have caused significant delays in shipping and revenue recognition for export orders. This has led to underutilization of dedicated production facilities, driving up fixed and operational costs.

2. Logistics Costs: The global conflict has increased international and domestic logistics costs. Most sales contracts are on a delivered basis, directly impacting operations.

3. Raw Material Costs: Surging costs for coking coal have squeezed margins in the DI pipe business.

4. Lower Capacity Utilization: Softness in the domestic water business resulted in lower execution and capacity utilization in the water pipe segment.

5. Abu Dhabi DI Plant: Facing cost overruns, underutilization, and delivery constraints (difficulty serving customers unreachable by truck), leading to lower production, sales, and profitability.

6. Seamless Business: Although the API license was reinstated in June 2026, the immediate financial impact in Q2 was limited. The business is currently bidding to rebuild its order book.

Order Book and Outlook

  • Confirmed Order Book: USD 1.135 billion (approx. ₹10,700 crores).
  • Letters of Intent (LOIs): USD 625 million (approx. ₹6,250 crores, including a post-board-meeting LOI for USD 50 million for Southeast Asia). This comprises USD 480 million for export (oil & gas sector to CIS and Southeast Asia) and USD 145 million for domestic business.
  • Upon conversion of LOIs, the total order book would be approximately ₹17,000 crores.
  • Execution for new LOI-based orders is expected to begin from February-March 2027, pending raw material arrival from January-February 2027.
  • A significant job-work order of 600,000 metric tons for Saudi Arabia remains delayed due to the Middle East war, impacting capacity utilization but not working capital. Parties are seeking alternative transportation solutions.
  • Management expects H2 FY27 performance to be better than H1 FY27, driven by improved capacity utilization, overhead reduction, cost control, and the execution of new orders. The seamless business is expected to benefit from API license reinstatement in subsequent quarters.

Subsidiary and JV Updates

Abu Dhabi DI Pipe Operations:

  • Operations are highly impacted by regional conflicts, reduced to essential demand within trucking range for employee safety.
  • Q2 FY27 Sales: 29,000 metric tons, down from 34,000 metric tons in Q1 FY27.
  • Order Book: USD 195 million for 177,000 tons, providing 9-12 months of operational visibility.
  • The imposition of anti-dumping duties by Saudi Arabia on Indian DI pipe exporters (16-30%) is seen as a potential positive for the Abu Dhabi facility's competitiveness.

Jindal Hunting JV (51% stake):

  • Revenue: ₹9.70 crores in Q2 FY27.
  • Loss: ₹1.5 crores in Q2 FY27, attributed to the previous suspension of its API license. Performance is expected to improve with the license reinstated.

Expansion Projects (MENA Region)

Abu Dhabi Seamless Pipe Plant:

  • Location: KEZAD industrial area, Abu Dhabi, UAE.
  • Capacity: 300,000 tons per annum.
  • Estimated Investment: USD 330 million.
  • Status: Project is in the initial development and construction phase. Leasehold land with civil infrastructure is secured. Procurement of long-lead equipment is underway with active LCs and cash advances. Financial closure is projected in the coming months. Commercial operations are targeted for FY28-29.

Saudi Arabia SAW Pipe JV:

  • JV Structure: Jindal Saw (51%) and Buhur, Kingdom of Saudi Arabia (49%).
  • Facilities: Two advanced pipe manufacturing facilities (helical and longitudinal) with a capacity of 300,000 metric tons each.
  • Status: Land has been secured. LCs for long-lead items are established. Interim financial closure is expected over the next few months. The venture is monitoring the evolving geopolitical situation.
  • A separate, small-scale Saudi DI pipe finishing venture has been put on hold due to the regional scenario. The market will be served from the Abu Dhabi facility instead.

Litigation Update

  • Jindal ITF vs. NTPC: A Division Bench of the Delhi High Court delivered a split verdict. The Chief Justice has referred the matter to a third judge, who has been appointed. The next hearing is scheduled for January 2027.

Other Business Segments

Pellet Business:

  • Profitability has been and may continue to be impacted due to increased diesel prices, low Fe content in iron ore, and a higher stripping ratio.

US Operations:

  • Entities are performing consistently well, contributing positively through job-work activities like double jointing, coating, and helical anchor activities.