Jindal Saw slips 4% after API restricts monogram use on seamless pipes

Jindal Saw shares slipped 4.3 per cent on BSE, logging an intra-day low at ₹178.8 per share. At 9:17 AM, Jindal Saw’s share price was trading 1.95 per cent lower at ₹183.3 per share. In comparison, the BSE Sensex was down 0.08 per cent at 83,798.5.  In one year, Jindal Saw shares have slipped over 25 per cent, compared to Sensex's rise of 10 per cent. 

 

The stock was under selling pressure following an audit conducted by the American Petroleum Institute (API), certain non-conformities (NCs) were identified, leading to the issuance of a suspension notice that prohibits the company from using the API monogram on its seamless pipes. 

 

“We wish to inform you that during the API audit, certain Non-conformances (NCs) were observed and a suspension letter has been issued restricting the Company from affixing the API monogram on its API seamless pipes,” the filing read. 

 

The company is engaging with the API and implementing necessary corrective actions to resolve the identified NCs. The financial impact is expected to be limited, as the seamless pipe production capacity is interchangeable and has been redirected toward other product lines, according to the company.

 

Jindal Saw intends to take all required measures to ensure compliance with applicable standards.

 

That apart, in the December quarter (Q3FY26), Jindal Saw reported Q3FY26 revenue of ₹4,963 crore, down 6 per cent year-on-year and up 17 per cent quarter-on-quarter (QoQ). Profit after tax rose 79 per cent QoQ at ₹247.6 crore.

 

In its post Q3 note, Systematix Institutional Equities noted that the recovery seen in Q3FY26 provides near-term relief to Jindal Saw and is expected to sustain over the coming quarters. 

 

Growth visibility in the medium term remains contingent on the revival of Jal Jeevan Mission (JJM) funding and ramp-up at the seamless pipe facility. Meanwhile, the Middle East and North Africa (MENA) expansions remain at an early stage, with meaningful profitability contribution expected only from FY29, scaling up further in FY30. 

 

The brokerage revised its target price to ₹235 per share from ₹272  earlier, and maintained ‘Buy’ rating on the stock. Resumption of central government capex disbursals and signs of demand are key things to monitor for the company. Key risks include a slowdown in infrastructure activity and further delays in government capex.  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.