Jindal Stainless Shines Bright in Q2 FY26 Amidst Dynamic Market

Jindal Stainless Limited, a prominent player in India's stainless steel sector, has reported a robust performance for the second quarter of the financial year 2026 (Q2 FY26). The company demonstrated significant growth across key financial metrics, driven by strong domestic demand and strategic operational enhancements. This quarter's results underscore the company's resilience and its proactive approach to market challenges and sustainability.

For Q2 FY26, Jindal Stainless recorded a consolidated net revenue of INR 10,893 crore, marking an impressive 11% increase year-on-year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at INR 1,388 crore, a substantial 17% rise compared to the previous year. Profit After Tax (PAT) saw an even more remarkable surge of 33% year-on-year, reaching INR 808 crore. These figures highlight the company's effective cost management and operational efficiency. Total sales volume for the quarter reached 648,050 metric tons, reflecting a 15% year-on-year growth and a 3% sequential increase, indicating sustained market traction.

Domestic Demand Fuels Growth

The company's performance was significantly bolstered by robust domestic demand across various sectors. The Process Industry, Railways, Infrastructure, Automobiles, and Pipes & Tubes segments all contributed meaningfully to this momentum. Notably, the Railways sector experienced healthy coach demand, particularly driven by the rollout of Vande Bharat sleeper trainsets and a strategic shift by Indian Railways from ferritic to austenitic stainless steel. The Infrastructure sector also saw increased stainless steel usage in flyovers, Road Over Bridges (ROBs), and Foot Over Bridges (FOBs), supporting demand growth, especially in coastal regions. The automotive segment maintained volume growth, supported by festive season uplift and increased demand for special grades, with a positive outlook for Q3 FY26, aided by recent GST cuts.

Jindal Stainless also reported its product series split for the quarter, with the 200 series accounting for 34% of revenue, the 300 series for 49%, and the 400 series for 17%. This diversification across product types helps in catering to varied market needs and maintaining a balanced portfolio.

Strategic Initiatives and Sustainability Focus

Jindal Stainless is actively pursuing several strategic initiatives to enhance its operational capabilities and commitment to sustainability. The company has partnered with Greenzo Energy India Limited to commission a green hydrogen plant at its Jajpur facility, targeting completion by mid-next year. This initiative, along with an increase in renewable power utilization at Jajpur and Hisar facilities to 42% in Q2 FY26 (up from 26% in FY25), underscores its dedication to decarbonization and cleaner operations.

In a significant move to strengthen its presence in the infrastructure sector, Jindal Stainless, through its subsidiary Jindal Stainless Steelway Ltd. (JSSL), launched its first stainless steel fabrication unit in Patalganga, Mumbai, on October 6, 2025. This 4 lakh square ft. facility, built with an initial investment of approximately INR 125 crore, will fabricate critical components like bridge girders. It is expected to reach an annual fabrication capacity of 18,000 tonnes by FY26-27, up from an estimated 4,000 tonnes in the current financial year, and will create over 250 direct jobs.

Furthermore, the company is doubling its slag processing capacity with a new wet milling plant at Jajpur, in partnership with Harsco Environmental. This 15-year agreement aims to recover metal from industrial waste, conserve natural resources, and create approximately 140 new jobs, with the plant expected to pay back its equivalent value through metal recovery from slag. The NPI operations have ramped up to about 90% utilization, contributing positively to EBITDA, and cold rolling capacities are being expanded, expected to start by the end of FY27.

Navigating Global Headwinds and Future Outlook

Despite the strong domestic performance, Jindal Stainless acknowledges ongoing global challenges. The global environment remains dynamic, with trade disruptions impacting overall flows. Soft demand in the US and EU, coupled with the transition phase of CBAM (Carbon Border Adjustment Mechanism) implementation, has led to slower buying activity as buyers keep inventory lean. Domestically, the temporary suspension of the Quality Control Order (QCO) is a concern, as it allows subsidized and substandard materials to flow into India, creating an uneven playing field. The company remains hopeful that the government will strengthen quality standards.

Management is maintaining its volume guidance of 9-10% for the current financial year and expects to meet its Q3 and H2 FY26 targets despite the QCO uncertainty. Chromeni's capacity utilization is projected to reach 80% in the second half of FY26. The company's consolidated net debt has further reduced to INR 3,646 crore, with a net-to-debt EBITDA ratio of 0.73x and a net debt-to-equity ratio of 0.2x, reflecting a disciplined approach to financial management. This robust financial position allows the company to pursue its expansion plans without compromising its financial ratios.

Jindal Stainless continues to focus on increasing the share of value-added products and expanding its presence across diverse sectors. The company's unwavering commitment to quality, operational discipline, and sustainability positions it well to capitalize on India's economic growth and infrastructure expansion, even amidst global uncertainties. The management's proactive stance on green initiatives and strategic capacity expansions indicates a clear vision for sustained growth and market leadership.