Jindal Saw Limited reported a 14% year-on-year increase in gross revenue for Q2 FY27, reaching INR3,881 crores. However, operational performance saw EBITDA compress to INR265 crores from INR335 crores in Q2 FY26. The company attributed the results to geopolitical disruptions, rising raw material and logistics costs, and softer demand in certain segments, while highlighting a strong order book and strategic growth initiatives in the MENA region.
Jindal Saw Reports Q2 FY27 Financials
Jindal Saw Limited has announced its financial results for the second quarter of FY27, ending September 30, 2026. The company posted a gross revenue of INR3,881 crores, marking a 3% increase quarter-on-quarter and a significant 14% rise year-on-year. Despite the top-line growth, operational profitability was impacted, with EBITDA declining to INR265 crores compared to INR341 crores in Q1 FY27 and INR335 crores in Q2 FY26.
Standalone Performance Highlights
On a standalone basis for H1 FY27, gross revenues increased by 13% year-on-year to INR7,637 crores. However, EBITDA contracted to INR606 crores from INR894 crores in H1 FY26. Finance costs saw a reduction, falling to INR163 crores from INR239 crores in H1 FY26. Profit Before Tax (PBT) stood at INR189 crores, and Profit After Tax (PAT) was INR181 crores for H1 FY27.
Consolidated Financials and Challenges
On a consolidated basis, gross income for Q2 FY27 grew by 0.8% sequentially to INR4,523 crores and 6% year-on-year to INR4,264 crores. EBITDA on a consolidated level slid to INR312 crores from INR420 crores in Q1 FY27. The company cited geopolitical tensions in West Asia, increased logistics costs, surging raw material prices, and softer demand in the domestic infra water segment as key factors impacting performance. The Abu Dhabi DI plant faced challenges including cost overruns and delivery constraints.
Debt Position and Outlook
As of September 30, 2026, the company’s standalone net debt narrowed to INR2,245 crores from INR2,346 crores on June 30, 2026. Long-term debt includes INR522 crores from NCDs subscribed by LIC. CARE Ratings affirmed CARE A1 plus for short-term debt facilities and CARE AA with a stable outlook for long-term debt facilities.
Project Developments in MENA Region
Jindal Saw’s strategic investments in the MENA region continue. The seamless pipe plant project in Abu Dhabi is progressing to the initial development and construction phase, with commercial operations expected in FY28-’29. In Saudi Arabia, a joint venture for SAW pipe manufacturing facilities is also progressing well. The company aims to leverage these platforms for regional growth in the energy and water sectors.
Order Book and Future Expectations
The company has a confirmed order book of USD1.135 billion (approximately INR10,700 crores), including Letters of Intent (LOIs) worth approximately USD575 million. This order book is expected to reach approximately INR16,200 crores upon conversion of LOIs. The company anticipates a better second half (H2) compared to the first half (H1) of FY27, driven by new orders and improving market conditions, particularly in the oil and gas sector.
Operational Efficiency and Margins
Efforts are underway to improve liquidity by focusing on capacity utilization, overhead reduction, and cost control. While margins have been under pressure due to product mix and external factors, the company expects an upward trend from Q3 onwards as the new orders from the oil and gas sector and exports contribute to a better product mix. The company is actively seeking solutions to mitigate the impact of geopolitical disruptions and supply chain constraints.
Legal Update
The litigation in Jindal ITF versus NTPC is ongoing, with a division bench of Delhi High Court delivering a split verdict. The matter has been referred to a third judge, with the next hearing scheduled for January 2027.
Source: BSE
