Jindal Saw (JINDALSAW) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 results were softer compared to the previous year and recent quarters, mainly due to production chain disruptions and customer cash flow issues, especially in the water sector, which forms 60% of business.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were reviewed and approved by the Board on August 5, 2025.

• The company operates primarily in the Iron & Steel products segment on both standalone and consolidated bases.

• Geopolitical tensions in the MENA region and scheduled maintenance at key plants led to deferred export shipments and lower production volumes.

• Despite these challenges, the company maintained a robust order book and achieved an EBITDA margin above 16%.

Financial highlights

• Standalone revenue from operations was ₹3,300.37 Cr, with net profit after tax at ₹362.32 Cr for Q1 FY26.

• Consolidated revenue from operations was ₹4,084.68 Cr, with net profit after tax at ₹415.47 Cr for Q1 FY26.

• Standalone EBITDA for Q1 FY26 was INR 560 crore; consolidated EBITDA was INR 688 crore.

• EBITDA margin remained above 16%, higher than historical averages of 12%-13%.

• Subsidiaries contributed ₹841.67 Cr in revenue and ₹40.41 Cr in net profit after tax; joint ventures contributed ₹10.39 Cr in net profit after tax for Q1 FY26.

Outlook and guidance

• Short-term outlook remains challenging due to ongoing funding delays in the water sector, but medium- to long-term prospects are positive if government disbursements improve.

• Robust order book of over $1.5 billion (1.6 million tons confirmed, 265,000 tons LOI) provides strong volume visibility for the next year.

• No formal guidance provided, but management expects to match or exceed last year’s ductile iron pipe sales if the environment improves.

• Management expects a favorable outcome in the ongoing legal appeal involving Jindal ITF Limited, with no adjustments required to asset carrying values or going concern status.