Jindal Stainless Q2 net profit rises 11% to Rs 898 crore amid industrial demand

Jindal Stainless posted an 11% rise in consolidated net profit to Rs 898 crore for the September quarter, bolstered by steady manufacturing activity across the country and expanded global sales.

Net revenue for the quarter grew more than 18% year on year to Rs 12,874 crore. Total sales volume reached 6,64,378 tonnes, up 2.5% from the corresponding period last year, reflecting the sustained appetite for domestic industrial materials as core infrastructure projects continue nationwide.

Higher margins lift earnings

Profitability improved even as the broader steel sector navigated global supply chain crosscurrents. Operating earnings before interest, tax, depreciation and amortisation (EBITDA) reached Rs 22,000 per tonne. The company subsequently raised its full-year EBITDA target to Rs 22,000 per tonne, up from the Rs 18,000 to Rs 20,000 band projected at the start of the financial year.

The quarter's bottom line was also helped by an exceptional gain of Rs 116.41 crore, linked to an Indonesian subsidiary and a tax provision.

Navigating overseas disruptions

External geopolitical tensions, particularly across West Asia, created early hurdles for energy supplies and maritime trade routes. Chief executive Tarun Khulbe noted that while fuel availability and shipping bottlenecks disrupted the first quarter, operations rebounded sharply during the July–September period.

"The first quarter was badly affected by the war because of fuel unavailability and the high prices of fuel. In the second quarter, we overcame that," Khulbe said. "From an availability point of view, the situation is better, but price fluctuations remain."

Taking into account the earlier drop in June-quarter volumes, the company revised its full-year sales volume expansion estimate to 4-6%, compared to the 7-9% forecast indicated earlier in the fiscal year.

Export resilience and strategic supplies

Despite volatile international shipping lanes, exports made up 11% of total sales during the quarter, jumping roughly 25% year on year as Jindal Stainless diversified its overseas customer footprint.

To safeguard its manufacturing operations against shifting global regulations—such as proposed European restrictions on scrap metal exports—the steelmaker has strengthened its raw material supply chains. Strategic investments in Indonesian operations alongside the flexible use of scrap and nickel pig iron provide stable operational buffers against price swings in imported feedstock.

Investment bank Jefferies maintained an optimistic outlook on the company, noting that operating performance met market expectations and setting a price target of Rs 970 per share, representing upside potential of more than 30% from current trading levels.