India: Jindal Stainless FY26 performance reflects resilient domestic demand and margin expansion

• Domestic demand anchors volume growth
  
  
• Exports remain under pressure amid global headwinds
  
  

India's leading stainless steel producer, Jindal Stainless (JSL), reported improved performance in FY26, supported by strong domestic demand and operational efficiencies, while export markets remained challenging amid global trade disruptions.

Domestic demand remained a key growth driver, with strong traction across automotive, infrastructure, pipes and tubes, metro projects, elevators, and consumer appliances. Adoption of stainless steel continued to expand in sectors such as electric vehicles, real estate, defence, and aerospace, supported by durability, corrosion resistance, and recyclability.

Sales, product mix

Finished goods sales rose 8.1% y-o-y to 2.56 million tonnes (mnt), compared to 2.37 mnt in FY25. Domestic sales contributed 92% of volumes, while exports remained limited at 8% due to weak global demand and geopolitical uncertainties. Demand was driven by infrastructure, railways, metros, automotive, pipes and tubes, and white goods, with increasing adoption across end-use sectors.

In the fourth quarter, standalone sales volume reached 6,42,000 t, slightly dropped from last quarter's 6,50,000 t. Consolidated revenue for the quarter stood at INR 11,337 crore, up 8% from last one's INR 10,518 crore.

Earnings, cost performance

Net revenue increased 6.2% y-o-y to INR 42,680 crore from INR 39,312 crore, while EBITDA grew 10.7% to INR 4,322 crore from INR 4,667, supported by improved cost control, better product mix, and value-added sales. Profit after tax rose 4.9% to INR 2,843 crore. At the consolidated level, EBITDA and PAT growth remained stronger, reflecting operating leverage and downstream integration benefits.

In Q4, EBITDA stood at INRB 1,455 crore, up 3% from INR 1,408 crore in Q3 FY'26.PAT increased by 34% to INR 892 crore from Q3's INR 666 crore.

Initiatives and milestones

During the year, JSL achieved key milestones, including commissioning a 1.2 MTPA melt shop in Indonesia through its joint venture, taking total melting capacity to 4.2 MTPA. The company also introduced its stainless steel rebars brand "Jindal Infinity" and partnered with Indian Railways to develop a stainless steel salt container. In branding initiatives, the company onboarded Ranveer Singh as brand ambassador and collaborated with Sunrisers Hyderabad to enhance market visibility.

Commenting on the performance, Managing Director Abhyuday Jindal highlighted the company's focus on capacity expansion, value-added products, and operational efficiency, while targeting sales volume of around 3.5 MTPA by FY29.

Jindal Stainless, India's largest stainless steel manufacturer, continues to invest in sustainable manufacturing practices and infrastructure innovation, supporting long-term industrial growth and efficiency. Jindal Stainless reported an annual turnover of INR 40,182 crore (USD 4.75 billion) in FY25 and is progressing toward a 4.2 mnt annual melt capacity by FY27. The company operates 16 manufacturing and processing facilities across India and overseas locations including Spain and Indonesia, supported by a global presence in 12 countries as of March 2025.

Sectoral demand trends remain supportive

Demand from railways, metros, and coach manufacturing remained strong, driven by a shift towards austenitic stainless steel and rising deployment in Vande Bharat and metro projects. Market participants noted that wagon demand was relatively softer due to wheel shortages, though forward momentum remains intact with increasing stainless steel adoption.

Infrastructure continued to support consumption, particularly in flyovers, bridges, and fabrication segments, alongside sustained demand from elevators and vertical mobility systems amid ongoing urbanisation. Pipes and tubes also recorded healthy offtake, backed by construction activity and stable project pipelines.

Outlook

Near-term demand is expected to remain supported by infrastructure expansion and mobility projects. However, import pressure and global uncertainties may continue to weigh on pricing dynamics, while alloy cost volatility remains a key monitorable.