- Sales volume rises by 15% y-o-y in Q2FY’26
- Capacity utilisation stands at around 70%
India’s leading stainless steel manufacturer, Jindal Stainless (JSL), delivered a robust performance in Q2 and H1FY’26, driven by strong domestic demand, capacity ramp-up, and operational efficiency.
Sales, product mix
Sales volumes in Q2FY’26 stood at 6,48,000 tonnes (t), up 14.8% y-o-y and 3% q-o-q, driven by improved offtake from the automotive, railways, lifts and elevators, and white goods sectors.
The grade mix remained consistent with demand trends. The 300 series continued to dominate, at 49% of sales, followed by the 200 series at 34% and the 400 series at 17%, with the latter reflecting a growth in product mix.
Sales composition for domestic products and exports was at 91% and 9%, respectively, in Q2FY’26.
EBITDA, cost performance
Consolidated EBITDA for the quarter stood at INR 1,388 crore, a 17% y-o-y and 6% q-o-q increase, supported by improved product mix, operational efficiencies, and disciplined raw material procurement.
The company maintained a healthy balance sheet, with a net debt-to-equity ratio of 0.2x, indicating a strong leverage position.
Capacity utilisation, expansion
Capacity utilisation was at around 70% during the quarter, with a target to increase it towards ~90% as new facilities scale up. Capex guidance for FY’27 remains unchanged at INR 2,700 crore.
The Maharashtra downstream unit has moved forward with land acquisition, while the Indonesian SMS and United Steel HRAP line remain on track for FY’27 commissioning, alongside the cold rolling expansion in India targeted for the same timeline. These capacity additions are expected to enhance domestic availability, improve downstream value addition, and support the company’s medium-term growth strategy.
Market demand & exports
Domestic stainless steel demand remained firm during the quarter, supported by infrastructure and construction activity, metro and railway coach manufacturing, strong elevator and machinery demand, and a recovery in automotive consumption following the recent GST adjustment.
However, exports to Europe remained subdued due to CBAM-related compliance uncertainties. The company highlighted that it is fully prepared on product specifications and approvals and expects export volumes to improve once greater policy clarity emerges.
New developments
Jindal Stainless developed 410L rebars with SS500 strength for L&T’s bullet train project and supplied 301N stainless steel for phase 2 of Bangalore Metro, showcasing its focus on infrastructure-critical products.
The company introduced advanced 304 and JT (Jindal tubes) grades for salt tipper trailers, promoting sustainable logistics solutions.
Jindal Defence and Aerospace (JDA) secured orders for high-nitrogen steel plates for ATGM launchers and low-alloy steel sheets for GSLV Mk-III motor casings in the Gaganyaan mission, underlining its strategic role in defence and aerospace.
The company’s commitment to sustainability includes a partnership with Greenzo Energy India for a green hydrogen plant at Jajpur, increased renewable power use to 42% at key facilities, and doubling slag processing capacity at Jajpur to advance circular production.
Abhyuday Jindal, Managing Director, Jindal Stainless, said, “The temporary suspension of the QCO is concerning and discouraging for the entire domestic industry. Amid the prevailing geopolitical complexities, we foresee an increased influx of sub-standard and cheap imports into the country. We hope the government continues with stronger frameworks for upholding quality standards.”
Outlook
Jindal Stainless anticipates continued momentum with ongoing capacity expansion and strong demand across sectors such as infrastructure, automotive, and consumer goods. Strategic focus on innovation, sustainability, and cost optimisation is expected to drive growth in FY’26 and beyond.
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