Key Financial Performance

Q2 FY27 Performance (Consolidated):

  • Net Profit (PAT): INR 1,666 crores, up 17% quarter-on-quarter (QoQ) and approximately 9% year-on-year (YoY)
  • EBITDA: INR 2,762 crores, up 8% QoQ and 2% YoY
  • Revenue: Grew around 14% QoQ
  • Finished goods sales volume: Rose 14% QoQ and 3% YoY
  • Exports: Registered strong growth of 20% QoQ and 36% YoY, accounting for 11% of total volumes

H1 FY27 Performance (Consolidated):

  • Deliveries: 1.25 million tons, reflecting marginal decline of 2% YoY
  • EBITDA: INR 2,762 crores
  • PAT: INR 1,666 crores

Balance Sheet Position (as of September 2026):

  • Consolidated net debt: INR 3,121 crores
  • Net debt-to-EBITDA ratio: 0.55x
  • Net debt-to-equity ratio: 0.15x

Capital Expenditure:

  • Q2 FY27 capex: Approximately INR 895 crores
  • H1 FY27 total capex: INR 1,555 crores

Revised Guidance

Management revised full-year guidance for FY27:

  • Volume growth: Reduced to 4-6% from earlier 7-9%
  • EBITDA per ton: Increased to INR 20,000-22,000 from earlier INR 18,000-20,000
  • Capex guidance: Unchanged at INR 2,400-2,600 crores
  • Net debt guidance: Unchanged at INR 2,500-2,800 crores

Operational Highlights

  • Strong recovery from Q1 disruptions with double-digit QoQ growth in sales volume and net revenue
  • Domestic demand remained healthy across key end-user segments including automotive, railways, metros, lifts, elevators, and white goods
  • Industrial gas availability remained stable during Q2 with no recurrence of previous quarter challenges
  • Transition to natural gas strengthened operational resilience
  • Series-wise volume mix in Q2: 200 series (37%), 300 series (47%), 400 series (16%)

Strategic Developments

Subsidiary Amalgamation:

Board approved amalgamation of four wholly-owned subsidiaries into Jindal Stainless Limited:

  • Jindal United Steel Limited
  • Chromeni Steels Limited
  • JSL Super Steels Limited
  • Rabirun Vinimay Private Limited

Purpose: Simplify group structure, enhance operational efficiency and governance, optimize financial resources, reduce administrative and compliance costs, eliminate intercompany transactions, and facilitate better management oversight.

Expected tax benefits: Brought forward losses of approximately INR 400-500 crores in these companies, translating to actual tax benefits of around INR 100-125 crores. Expected timeline for NCLT approval is approximately 12 months.

Technical Collaboration:

Entered into technical assistance agreement with Japan's JFE Steel for selected ferritic grades to strengthen technical capabilities. Agreement involves payment of fees for services provided.

Credit Rating:

CARE Ratings upgraded long-term debt credit rating to AA+ Stable.

Product Development & Innovation

  • Developed India's first high-aluminum stainless steel grade for catalytic converters
  • Developed two new 400 series grades, one of which opened new market in South Africa
  • Expanding presence in export markets including South Korea, Colombia, South Africa, Brazil, and Japan

Market Challenges

Import Pressure:

Significant increase in imports of substandard products, particularly from China and of Chinese origin, since April 2026 following suspension of Quality Control Order (QCO). Chinese origin imports during first 4 months of current fiscal year equivalent to nearly two-thirds of total imports recorded during previous fiscal year.

Anti-Dumping Duty (ADD) Case:

DGTR extended timeline for ADD application conclusion by another 6 months up to March 28, 2027. Management expects decision by December 31, 2026.

European Export Market:

Europe share of exports reduced considerably due to quota restrictions. Eligibility quota reduced from approximately 12,000 tons to 5,500-6,000 tons.

Subsidiary Performance Updates

  • Chromeni Steels: Running at approximately 85% utilization
  • Rathi: Running at approximately 79% utilization
  • RVPL (Rabirun Vinimay): Currently used for polishing; cold rolling equipment investment underway for operationalization next year
  • Indonesia nickel business: EBITDA positive and within guidance range of USD 500-1,500 per ton

Sustainability Initiatives

  • Reduced Scope 1 and Scope 2 greenhouse gas emissions intensity by 12% compared with FY26 levels
  • Published TCFD and TNFD reports
  • Commitment to long-term net zero ambitions

Brand & Customer Engagement

  • Expanded pipe and tube campaign with airport branding at Delhi and Mumbai airports
  • Influencer-led digital outreach
  • Expanded brand ambassador Ranveer Singh's presence across partner packaging and marketing collaterals
  • Jindal Saathi loyalty program received gold and silver awards at ET Brand Equity MarTech and DigiPlus awards
  • Saathi Seal co-branding initiative extended to water tanks

Digitalization & Skill Development

  • Stainless academy signed agreement with NCVET for recognition as awarding body for government-recognized certification programs
  • B2B platform achieved full digital adoption among MOU trade and plates and tube manufacturing partners
  • Jindal Lifestyle commissioned new powder coating facility at Pathredi for metro and infrastructure applications

Management Commentary

Company remains committed to delivering sales volume target of 3.5 million tons per annum by FY29. Emerging themes such as energy crisis, climate change and self-reliance seen as strong tailwinds boosting new stainless steel applications in sectors including nuclear, semiconductor, ethanol, desalination plants and green energy.