Jindal Stainless Q4 FY26: Strong profitability, lower net debt, and a bigger capacity platform

Jindal Stainless closed Q4 FY26 with a stronger profitability print despite a volatile operating environment shaped by fuel and logistics disruptions. On a consolidated basis, revenue from operations rose to INR 11,337 crore in Q4 FY26 (up 11% YoY), while EBITDA increased to INR 1,455 crore (up 37% YoY). Profit after tax came in at INR 834 crore (up 41% YoY). For FY26, the company reported consolidated revenue from operations of INR 42,955 crore, EBITDA of INR 5,560 crore, and PAT of INR 3,185 crore.

Operationally, management said Q4 deliveries were about 0.64 million tons, stable year on year, while FY26 deliveries rose to 2.57 million tons, up about 8%. Sales continued to be largely domestic. The investor presentation indicated domestic sales of 93% in Q4 FY26 and 92% in FY26, with exports at 7% and 8% respectively.

A key takeaway from the quarter was that the balance sheet strengthened further even as the company continued with its expansion program. As of March 31, 2026, consolidated net debt was INR 3,040 crore, lower than INR 3,991 crore a year ago. Management also highlighted net debt to EBITDA at 0.55x and net debt to equity at 0.15, alongside long-term credit rating of AA with a Positive outlook and short-term rating of A1+.

FY26 financial performance in one view

The standalone results were mixed on headline growth but showed improved operating profitability. Standalone revenue from operations was INR 10,826 crore in Q4 FY26 (flat YoY), with EBITDA of INR 1,111 crore (up 25% YoY). Standalone PAT was INR 892 crore in Q4 FY26 (down 4% YoY). For FY26, standalone revenue was INR 42,680 crore (up 6%), EBITDA was INR 4,322 crore (up 11%), and PAT was INR 2,843 crore (up 5%).

Capacity expansion: Indonesia commissioning and downstream catch-up

The most strategically important update in the earnings call was the commissioning of a 1.2 million tons per annum stainless steel melt shop in Indonesia, which management said was completed ahead of schedule. With this, the company stated total melting capacity has increased to 4.2 million tons per annum, including 3.0 million tons per annum in India.

Management’s current plan is to bring slabs produced in Indonesia into India and process them domestically. They also clarified accounting treatment: since the entity is a subsidiary, it will be consolidated line by line, with minority interest shown separately. On ramp-up, management indicated that utilization could rise to about 70% to 80% of capacity during FY27.

On the downstream side in India, the company reiterated progress on commissioning a 1.1 million tons per annum HRAP line and a 0.17 million tons per annum CRAP line at Jajpur. To strengthen downstream integration further, management also referenced an additional INR 900 crore capex commitment for augmenting cold rolling capacity at Hisar and Kharagpur, with CRAP capacity targeted to rise to 2.67 million tons per annum by FY28.

The expansion is linked to a longer-term volume ambition. Management stated a target of 3.5 million tons per annum sales volume by FY29, which it described as translating into robust double-digit compounded growth over the next three years.

Cost volatility and mitigation: fuel disruption becomes the swing factor

While demand commentary remained constructive across sectors, the near-term margin swing factor discussed on the call was fuel and consumables. Management cited geopolitical developments in West Asia impacting supply chains for industrial fuels such as propane, LPG, and natural gas, and also noted disruptions across consumables like ammonia and acid. The CFO stated the cost of these inputs increased around 2.5x to 3x versus prior levels.

Management acknowledged that passing on these higher costs is not uniform. In some cases the company can pass them through, but in other cases competition from importers restricts pricing flexibility. This uncertainty is one reason the company provided EBITDA per ton guidance only for the first half of FY27, rather than the full year.

On mitigation, management laid out a multi-pronged plan: increasing natural gas usage at Jajpur, exploring coal gasification and syngas options, and adopting green hydrogen to replace ammonia. The call referenced a green hydrogen setup at Jajpur expected to be running in June or July, and a ramp-up at Hisar from 90 to 400 in the next few months.

FY27 guidance: volume growth maintained, EBITDA per ton guided for H1

The management provided explicit operating guidance despite the uncertain backdrop. For FY27, it guided to 7% to 9% volume growth. For EBITDA per ton, it guided INR 18,000 to INR 20,000 for the first half of FY27, with a plan to review and potentially revise after six months depending on market conditions.

On exports, management noted FY26 export share at 8% (versus 9% in FY25) and said it expects exports to be around 8% to 10% of volumes in FY27. It also highlighted efforts to expand into markets such as Japan, Korea, Taiwan, and Germany, even as it acknowledged trade uncertainty and the evolving CBAM framework.

Capex guidance for FY27 was stated at around INR 2,600 crore.

Capital allocation and shareholder returns

In addition to expansion execution, management highlighted shareholder payouts. The board recommended a final dividend of INR 3 per share for FY26, in addition to an interim dividend of INR 1 per share, resulting in an aggregate payout of nearly INR 330 crore for FY26, subject to shareholder approval.

What to track from here

Jindal Stainless exits FY26 with stronger profitability, a lower net debt position, and a larger melting capacity base after commissioning the Indonesia melt shop. The near-term investment case, as framed by management, hinges on ramping up Indonesia smoothly, commissioning downstream capacity in India, and managing a sharp rise in fuel and consumables costs.

The company’s explicit guidance of 7% to 9% volume growth in FY27 and INR 18,000 to INR 20,000 EBITDA per ton for H1 FY27 sets a measurable checkpoint for investors. The second key monitorable will be how quickly the expanded capacity platform translates into stable, value-added volumes, especially as domestic demand remains the dominant driver and regulatory and import-related developments remain fluid.