Jindal Stainless Ltd (JSL) reported on Monday a 7.6% year-on-year increase in consolidated net profit for the first quarter of the fiscal year 2027 (FY27). This growth was achieved through increased revenue and a more favorable product mix, which helped offset production disruptions caused by industrial gas shortages following the Middle East crisis.
The country's largest stainless steel producer by revenue recorded a consolidated profit after tax (PAT) of ₹769 crore for the quarter ending June 30, compared to ₹715 crore the previous year. Revenue from operations increased by 10.5% to ₹11,279 crore, and earnings before interest, taxes, depreciation, and amortization (Ebitda) grew by 1.5% to ₹1,329 crore.
Nevertheless, sales volumes of finished products decreased by 7.3% year-on-year, totaling 580,805 tonnes. This was due to restrictions on propane and LPG availability that forced the company to temporarily reduce production.
Details on the impact of the crisis
Managing Director Abhidhudai Jindal stated during a press conference following the results announcement that the war was the primary cause of the disruptions. He noted that the company is heavily reliant on LPG and propane, much of which comes from the Middle East. The first few weeks of the quarter were marked by serious interruptions in production processes, but he added that domestic demand remained stable, and the volume reduction was entirely linked to supply issues.
Chief Executive Officer Tarun Hulbe reported that both plants—in Odisha and Hisar—were affected by LPG supply restrictions and logistical difficulties. The company has already installed piped natural gas at its Odisha facility, which has helped normalize production, although the geopolitical situation remains uncertain.
Despite the decline in production volumes, the company's profitability remained resilient as management shifted the sales focus towards higher-value products. Jindal stated that it intentionally reduced dependence on low-margin raw material grades and prioritized supplying higher-margin customer segments to protect profits during the disruptions.
The company noted that demand remains strong in the automotive, railway, infrastructure, manufacturing, and consumer markets. Sales of specialized grades for the energy and oil and gas sectors also increased. Exports accounted for 11% of total sales in the quarter, up from 9% the previous year.
Management clarified that the increase in export share does not reflect a strategic shift to foreign markets; export volumes remained roughly unchanged, and the higher percentage was due to lower domestic production during the quarter.
Looking ahead, the company maintained its FY27 volume growth forecast within 7-9%, stating that it will revise its revenue expectations for the second half of the year if geopolitical conditions become clearer.
Regarding exports, Jindal acknowledged that stricter protectionist quotas from the European Union will lead to reduced supplies to Europe. Nevertheless, the company expects to compensate for this by expanding sales to markets such as Japan, South Korea, Brazil, and Mexico.
Commenting on trade policy, Jindal mentioned ongoing discussions with the government regarding quality control measures and anti-dumping measures against imports of stainless steel from certain Asian countries. She expressed hope that the government would soon appoint anti-dumping verifiers and that the temporary suspension of the Quality Control Order (QCO), effective until March 2027, would not be extended.
Hulbe noted that fuel prices have stabilized compared to the peak observed during the Middle East crisis, although key raw materials like nickel and chromium remain volatile. The company continues to pass on changes in raw material costs to customers with a certain delay.
