JINDALSAW's Q2 FY27 numbers came in soft, with revenue of Rs. 4,471.79 Cr (+5.63% YoY) and PAT growth of -74.54% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 16, 2026 |
|---|
| Quarter | Q2 FY 2026-2027 |
|---|
| Revenue (Q2) | Rs. 4,471.79 Cr (+5.63% YoY) |
|---|
| PAT (Q2) | Rs. 35.28 Cr (-74.54% YoY) |
|---|
| EBITDA margin | 5.76% (-512 bps YoY) |
|---|
| EPS (Q2) | Rs. 0.74 (-68.91% YoY) |
|---|
| Market cap | Rs. 19,345.12 Cr |
|---|
| CMP | Rs. 302.50 |
|---|
Quarter Snapshot
Standalone revenue grew 13.4% YoY to Rs.3,823.80 cr, but consolidated PAT-to-owners fell 69.0% YoY to Rs.47.04 cr, contradicting management's guidance that Q2 would resemble Q1 (−54.8% QoQ), with EBITDA margin at 5.76% versus 10.88% a year ago. The compression stems mostly from a Rs.426.16 cr inventory build rather than input-cost inflation, compounded by subsidiaries swinging from a Rs.72.60 cr contributor to a Rs.23.65 cr drag and a one-time Rs.26.67 cr tax credit supporting reported PAT. H1 consolidated operating cash flow of Rs.1,385.29 cr (9.16× PAT), FCF of Rs.887.60 cr, and debt-equity at 0.27 provide balance-sheet cushion, but the guided H2 recovery requires simultaneous progress on MENA resolution, the Nashik seamless ramp (70,000–80,000 tons/quarter from Q3), and domestic water execution.
Key Investment Insights
Key Positives
- Standalone revenue grew 13.4% YoY to Rs.3,823.80 cr; H1 standalone revenue up 13.08% YoY to Rs.7,545.24 cr
- H1 operating cash flow of Rs.949.06 cr standalone (5.26× PAT) and Rs.1,385.29 cr consolidated (9.16× PAT-to-owners); consolidated FCF of Rs.887.60 cr covered H1 capex of Rs.497.69 cr
- Consolidated debt-equity improved to 0.27 from 0.41 YoY (standalone 0.20 from 0.28); current borrowings reduced Rs.231.31 cr consolidated in H1
- Cost of materials consumed fell to 55.59% of standalone revenue from 61.02% YoY; other expenses fell to 19.57% from 22.73%
- Credit ratings reaffirmed at CARE AA/Stable (Sep 21, 2026) and BWR AA/Stable (Oct 8, 2026); NCD asset cover at 17.01×
- API licence reinstated after the interruption that drove the −Rs.3.42 cr JV loss in the quarter
Risk Factors
- Consolidated PAT-to-owners fell 69.0% YoY to Rs.47.04 cr (total PAT −74.5% to Rs.35.28 cr), contradicting management's guidance that Q2 would be similar to Q1 (−54.8% QoQ)
- Consolidated EBITDA fell 44.1% YoY to Rs.257.56 cr with margin at 5.76% vs 10.88% — a ~1,900 bps gap to the 25% margin aspiration
- Subsidiaries swung from a +Rs.72.60 cr PAT contributor in Q2 FY26 to a −Rs.23.65 cr drag (Rs.96 cr reversal); subsidiaries reported a combined Q2 net loss of Rs.14.93 cr
- Inventory build of Rs.426.16 cr (standalone P&L charge; ~Rs.494 cr YoY swing in changes-in-inventories) accounted for most of the margin compression
- Earnings quality: reported PAT includes a one-time Rs.26.67 cr tax credit (normalized consolidated PAT Rs.8.61 cr), and consolidated other income of Rs.51.27 cr exceeded PAT of Rs.35.28 cr
- MENA shipping/geopolitical disruption materializing: consolidated revenue grew 0.44% QoQ vs 2.75% standalone; JV share of loss of −Rs.3.42 cr continued