JSL - Jindal Stainless Limited Share Price

In the earnings call held on May 5, 2026, Jindal Stainless Limited's management provided a positive outlook for the upcoming fiscal year. The company expects sales volume growth of 7% to 9% for FY27, supported by strong domestic demand, particularly in the automotive, infrastructure, and white goods sectors. They also anticipate achieving an EBITDA per ton guidance of INR 18,000 to INR 20,000 for the first half of FY27, despite the volatility arising from geopolitical issues affecting costs.

Key forward-looking points from management included:

1. Sales Growth: The company reported an 8% increase in sales volume year-on-year for FY26 and expects continued momentum across various sectors.

2. Financial Performance: The consolidated EBITDA for FY26 increased by 19% to INR 5,560 crores, and PAT rose 27% to INR 3,185 crores.

3. Upcoming Projects: Several metro projects will launch in FY27, driving a projected 2x-3x growth in stainless steel demand over the next 3 to 4 years.

4. Investment Plans: A capex plan of INR 2,600 crores is outlined for FY27, focusing on enhancing production capacity, including the commissioning of new lines in Jajpur.

5. Market Strategy: To counter lowered export volumes, management is expanding market footprint in countries like Japan and Germany and intends to maintain an export share of 8% to 10% in line with overall volume growth.

6. Defense Sector Engagement: The company is actively engaging in the defense sector, pursuing opportunities in land and aerospace systems, indicating a diversification of revenue streams.

Through these strategies, Jindal Stainless aims to fortify its market position and meet future growth targets.

Question 1: "Is it possible to give some volume growth guidance as well as EBITDA guidance for FY27? Considering the current global headwinds?"

Answer 1: In terms of volume growth for FY27, I expect at least 7% to 9% growth. For EBITDA per ton, factoring in the uncertainties we face, I'm guiding for INR18,000 to INR20,000 in H1. We may reconsider this after six months based on market conditions.

Question 2: "What would be the impact from the recent gas cost increases on EBITDA levels?"

Answer 2: Although gas availability has improved at higher costs, we remain committed to our blended guidance of INR18,000 to INR20,000 EBITDA per ton. We believe we can effectively manage costs despite these challenges.

Question 3: "Can you explain the decrease in export proportions and what you're projecting for FY27?"

Answer 3: In FY26, export share was 8% down from 9% in FY25 due to global challenges. Despite this, we aim to maintain 8%-10% of exports in FY27 with our expanded market presence and strategies to navigate the current landscape.

Question 4: "Can you elaborate on the government support regarding the QCO suspension affecting domestic producers?"

Answer 4: The suspension of QCO poses challenges for domestic players against substandard imports. We're in dialogue with the government highlighting the need for regulations protecting quality and fair competition to support the industry, particularly MSMEs.

Question 5: "What is your thought process regarding the expansion in Maharashtra despite the lack of government support?"

Answer 5: Despite challenges, we have confidence in our diverse product portfolio and market demand shifts towards long-lasting, energy-efficient solutions. We believe over time, the benefits will manifest, and we're positioning ourselves for future growth.

Question 6: "What are your plans and expected revenues from the defense segment?"

Answer 6: I cannot divulge specifics, but we are actively developing materials across various defense applications. Our focus is on aerospace and land systems, anticipating growth and new opportunities in this critical sector.

Question 7: "What is your capex guidance for FY27?"

Answer 7: For FY27, our capex guidance stands at approximately INR2,600 crores, aimed at supporting our planned growth initiatives.

Question 8: "How should we interpret the profit contribution from the RKEF business?"

Answer 8: The RKEF business is strategized for raw material security. Although EBITDA can vary significantly"”historically between $500 to $1,500 per ton"”recently it has surged to around $3,000 per ton, but such values can be volatile reflecting market conditions.

Question 9: "What measures are you taking to mitigate gas supply disruptions?"

Answer 9: We are diversifying our energy sources by increasing reliance on natural gas, and exploring coal gasification and syngas options. Our initiatives include a gas supply increase and implementation of green hydrogen solutions to ensure operational stability.