Jindal Saw (JINDALSAW) Q2 25/26 earnings summary

Executive summary

• Q2 FY2026 performance was weaker than prior periods due to liquidity challenges and delayed payments from government-funded water projects, despite robust demand and a record order book of 1.925 million tons as of September 2025.

• Major new export contract secured for 622,000 metric tons of chemical pipes for a Saudi water infrastructure project, with manufacturing to start in Q3.

• Subsidiaries, especially in Abu Dhabi, showed improved performance, while US operations remained marginal but profitable.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were reviewed and approved by the Board on October 17, 2025.

• Both standalone and consolidated results received unmodified review conclusions from auditors, with no material misstatements identified.

Financial highlights

• Standalone EBITDA for Q2 FY2026 was INR 335 crore, down from INR 560 crore in Q1 FY2026 and INR 875 crore in Q2 FY2025.

• Consolidated EBITDA for Q2 FY2026 was INR 482 crore, compared to INR 688 crore in Q1 FY2026 and INR 944 crore in Q2 FY2025.

• Standalone revenue from operations for Q2 FY26 was ₹3,371.85 Cr, up from ₹3,300.37 Cr in Q1 FY26; half-year revenue was ₹6,672.22 Cr.

• Consolidated revenue from operations for Q2 FY26 was ₹4,233.60 Cr, with half-year revenue at ₹8,318.28 Cr.

• Standalone net profit after tax for Q2 FY26 was ₹306.98 Cr; consolidated net profit after tax for Q2 FY26 was ₹242.08 Cr.

Outlook and guidance

• Gradual improvement in operational and financial performance is expected from Q3 onwards, supported by a strong order book and anticipated normalization of payment cycles.

• No significant growth CapEx planned in India beyond the seamless mill expansion; maintenance CapEx to remain at INR 600-700 crore annually.

• New projects in the GCC/MENA region are expected to be completed over the next two to three years, with partial operations starting in FY2029.

• Management expects a favorable outcome in the ongoing legal appeal involving a key subsidiary, with no adjustments required to asset values or going concern assumptions.