Jindal Saw Q1FY26 Results: Net Profit Rises 4% to ₹363.94 Crore, Even as Revenue Falls 23.9% 

Mumbai, 5 August 2025: Jindal Saw Ltd (NSE: JINDALSAW, BSE: 500378) reported its Q1FY26 earnings for the period ending 30 June 2025, reflecting a 4% year-on-year (YoY) rise in standalone net profit to ₹363.94 crore, despite a sharp decline in revenues caused by inventory rationalisation and a dip in demand. Revenue from operations fell by 23.9% YoY to ₹3,300.37 crore, highlighting the impact of subdued market activity and internal adjustments in stock levels.

Standalone Revenue Falls 23.9% YoY to ₹3,300.37 Crore Due to Softer Demand and Inventory Rationalisation

In Q1FY26, Jindal Saw’s standalone revenue declined significantly from ₹4,336.94 crore in Q1FY25 and ₹4,401.10 crore in Q4FY25 to ₹3,300.37 crore, marking a 23.9% drop YoY and 24.9% quarter-on-quarter (QoQ). The fall was primarily attributed to lower sales volumes triggered by softer demand across key markets and inventory adjustments aimed at streamlining operational efficiency. Total income also dropped to ₹3,326.82 crore, down 24.7% YoY and 25.3% QoQ.

Despite the revenue decline, the company’s total expenses fell 20.9% YoY to ₹3,019.84 crore, reflecting cost control efforts. However, this wasn’t enough to prevent a steep fall in profit before tax (PBT), which came in at ₹306.98 crore, down 48.9% YoY and 51.7% QoQ.

Net Profit Up 4% YoY to ₹363.94 Crore Supported by Prior-Year Tax Refund of ₹133.55 Cr

The net profit stood at ₹363.94 crore, up from ₹346.15 crore a year ago, despite the decline in operating revenue. This growth was supported by a tax credit of ₹63.66 crore, which included a ₹133.55 crore refund related to earlier financial years. This refund significantly lifted the bottom line in an otherwise challenging quarter. However, on a sequential basis, the net profit declined 23.3% from ₹474.25 crore in Q4FY25, in line with lower revenues and margins.

Consolidated Net Profit Stays Flat at ₹415.47 Cr as Margins Come Under Pressure

On a consolidated basis, the company posted a marginal 0.2% YoY decline in net profit to ₹415.47 crore, compared to ₹416.43 crore in Q1FY25. Consolidated revenue fell 17.3% YoY to ₹4,084.68 crore, while total expenses dropped 15.1% to ₹3,739.04 crore. The company’s total income dipped to ₹4,102.95 crore, and profit before tax dropped by 36.4% YoY to ₹374.30 crore.

Key Ratios Reflect Mixed Trends: Debt Reduced but Profitability Metrics See Pressure

Debt-to-equity ratio improved to 0.29 in Q1FY26 from 0.40 a year ago, indicating lower reliance on borrowed funds and better capital management. The current ratio improved slightly to 1.47, reflecting a better ability to meet short-term obligations.

However, profitability margins were affected. Net profit margin rose to 10.80% from 10.10%, owing to the tax credit gain. In contrast, operating margin slipped to 12.55% from 15.33%, suggesting lower operating efficiency amidst declining revenues. The interest coverage ratio also declined from 6.90 to 4.27, indicating reduced headroom to cover interest costs from earnings. The asset coverage for non-convertible debentures (NCDs) improved significantly to 15.46, signalling enhanced creditworthiness.

Stock Edges Down 0.20% to ₹210.10 Amid Mixed Earnings; Investors Await Q1 Call Insights

Jindal Saw’s stock price closed at ₹210.10, down 0.20% or ₹0.42 on the NSE on 5 August 2025, as investors digested the mixed quarterly numbers. The stock opened at ₹210.52 and touched a high of ₹216.29 before sliding to a low of ₹207.26. The market reacted cautiously due to the steep revenue drop and lower margins despite stable net profits. The company’s market capitalisation stood at ₹13,410 crore, with a P/E ratio of 7.82, and a dividend yield of 0.95%. The share is trading closer to its 52-week low of ₹199.62, significantly down from the 52-week high of ₹383.85, reflecting recent market volatility and earnings concerns.

Tax Refund of ₹133.55 Cr and One-Segment Focus Influenced Quarterly Bottom Line

Jindal Saw benefited significantly from a one-time tax refund, which helped offset the impact of weaker operations. The company operates in a single business segment—iron and steel products, which concentrates risk but allows streamlined operations. The tax credit notably cushioned the company’s profit figures.

Ongoing ₹1,891 Cr Arbitration Case Under Review; Company Remains Optimistic on Outcome

The company also disclosed that its subsidiary, Jindal ITF Ltd, is involved in a legal dispute over an arbitral award of ₹1,891.08 crore. The matter is currently under appeal, but the management asserted that no impairment has been made, as they maintain confidence in a favourable legal resolution.

Management Says Focus Is on Export Growth, Infrastructure Demand, and Value-Added Products

Commenting on the performance, Sminu Jindal, Managing Director, said,

“Our disciplined working capital and cost management initiatives helped us weather a softer revenue quarter. We remain confident in our long-term strategy focused on exports, value-added products, and infrastructure-led demand recovery.”

Jindal Saw Ltd: Global Iron and Steel Pipe Manufacturer with Strategic Presence

Jindal Saw Ltd is a flagship company of the O.P. Jindal Group and a global player in the manufacturing of iron and steel pipes, primarily serving the energy, water, and infrastructure sectors. The company is listed on both NSE and BSE and has a presence across the USA, UAE, and Europe. Following a stock split in October 2024, its shares have a face value of ₹1. The company’s diversified geographic exposure and product portfolio offer resilience against cyclical market fluctuations.

REF:https://nsearchives.nseindia.com/corporate/JINDALSAW_05082025151016_results-SE.pdf

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