6M FY27 Iron & Steel Pipes: 7,32,000; 6,19,000 (6M FY26)
6M FY27 Pellets: 6,03,000; 5,78,000 (6M FY26)
Key Operational Challenges Disclosed
Regional instability forced a halt on all exports to the MENA market from March 26, 2026, continuing through Q2 FY27, impacting capacity utilization and revenue.
Indian water pipe business faced headwinds from persistent domestic oversupply and cash flow constraints due to delays in Jal Jeevan Mission (JJM)-related payments.
Order Book Position (Standalone)
The current order book for Pipes and Pellets is ~ US$ 1,135 Million.
Letters of Intent (LOIs) of ~USD 575 Million are held.
This includes an export order of ~6,08,000 MT of pipe supply on a job work basis.
Credit Rating Updates
In September 2026, CARE Ratings reaffirmed "CARE A1+" for Short-term debt facilities and "CARE AA" with a "Stable" outlook for Long-term debt facilities.
In October 2026, Brickwork Ratings reaffirmed "BWR AA with Stable Outlook" for Non-Convertible Debentures of ₹5,000 million, originally subscribed by LIC in March 2021.
Subsidiary and Joint Venture Updates
Jindal Saw Gulf LLC (UAE Operations)
Abu Dhabi operations faced headwinds from the Middle East conflict in Q2 FY27.
Ductile iron (DI) pipe volumes declined to ~29,000 MT from ~34,000 MT in Q1.
Standalone order book expanded to USD 195 million (~177,000 MT) as of September 30, 2026, up from USD 188 million (~177,000 MT) in the prior quarter.
Performance recovery in H2-FY2027 is anticipated, driven by new business opportunities.
Jindal Hunting Energy Services Limited (Joint Venture)
The JV (51% controlled by Jindal Saw) generated ₹97 million in revenue (₹50 million previous quarter) with a ₹15 million loss after tax (₹44 million loss previous quarter) for Q2 FY26.
Performance was impacted by the suspension of Jindal Saw Ltd's API license for seamless pipes, which was reinstated in June 2026. Improvement is expected in subsequent quarters.
Legal Dispute Update
Jindal ITF Ltd. V/S NTPC Case
Jindal ITF Ltd. (JITF), a subsidiary, is in a legal dispute with NTPC over service contracts.
An initial arbitration award of ₹1,891 crores (plus interest and taxes) was granted to JITF on January 27, 2019.
The award was overturned by a single-judge bench of the Delhi High Court on January 30, 2025.
A Division Bench appeal resulted in a 1:1 split verdict on September 2, 2026.
The matter has been referred to the Chief Justice and assigned to a third judge for final resolution.
The next hearing is scheduled for January 22, 2027.
Expansion and Capex Projects
Seamless Pipe Facility, Abu Dhabi (UAE)
Wholly-owned step-down subsidiary, Jindal Seamless Pipe Manufacturing LLC, incorporated to establish a 300,000 TPA seamless pipe facility in KEZAD Economic Zone, Abu Dhabi.
Secured a leasehold land of ~4 lakh sq. mt. with basic civil infrastructure.
Equity capital injected for project execution, including land payment and project expenses.
Orders placed for critical long-lead items.
Financial closure expected in the next few months.
Commercial production scheduled for FY 2028-29.
Saw Pipe Facilities, Kingdom of Saudi Arabia (KSA)
A joint venture company, Jindal Saw and Buhur Altavision Company (51% step-down subsidiary), established to develop HSAW and LSAW pipe facilities with 300,000 TPA capacity each.
Land identified and lease arrangements being finalized.
Negotiations for long-lead items at an advanced stage, with initial orders placed.
Initial equity capital infused by JV partners.
Commercial production scheduled for FY 2028-29.
Ductile Iron (DI) Pipe Facility, KSA
JV agreement signed, but the project is on hold pending clarifications from the Saudi Government.
Overseas Business Scenario and Impact of Conflict
Approximately 28% of the company's order book comprises exports, with a significant proportion for the MENA region.
The conflict that commenced in February 2026 caused logistical challenges and disruptions to key shipping routes, notably the Strait of Hormuz.
Shipments to the Middle East have been suspended since March 2026, and the Force Majeure clause has been invoked for affected orders.
The company is actively exploring export opportunities in other geographies to diversify, reflected in LOIs for USD 575 Million (including exports of USD 430 Million).
Stated Rationale and Commentary
The company follows a policy of natural hedging for foreign exchange exposures.
Capex investments are being made to address operational bottlenecks for long-term efficiency and productivity gains.
The business model is described as diversified to create a hedge against simultaneous risks and adverse macros.
