Jindal Stainless Q3 profit jumps 26.6% as domestic demand offsets exports

Jindal Stainless reported a sharp rise in Q3 profit on strong domestic demand and efficiency gains

Jindal Stainless on Wednesday reported a 26.6 per cent on-year rise in its consolidated net profit for the third quarter of financial year 2026 (Q3FY26), as strong domestic demand and operational efficiencies helped the company offset a dip in exports caused by policy uncertainty in the US and European Union.

 

The company’s consolidated net profit came in at ₹828 crore in Q3FY26 against ₹654 crore during the same period last year.

 

Ebitda (earnings before interest, taxes, depreciation and amortisation) or operating profit rose 16.6 per cent year-on-year (Y-o-Y) to ₹1,408 crore.

 

Revenue for the quarter increased 6.2 per cent Y-o-Y to ₹10,518 crore, supported by steady demand from key sectors such as automotive, infrastructure, pipes and tubes, railways, metros and white goods.

 

 

The company’s board also approved payment of an interim dividend of ₹1 per equity share (50 per cent of the face value) for FY26. The record date for determining the entitlement of members for payment is set as January 29, 2026 and the dividend shall be paid on or before February 19, 2026, the company said.

 

On the export front, global trade sentiments remained subdued due to elevated uncertainties and protectionist measures in key western markets, due to tariffs imposed by the United States and the European Union’s Carbon Border Adjustment Mechanism (CBAM).

 

As a result, the company’s share of export in total sales declined to 5.4 per cent in the December quarter compared to 8.5 per cent during the same period a year ago.

 

During a media interaction after the results, Managing Director Abhyuday Jindal said the fall in exports was not due to competitiveness issues, but because customers in the US and European Union were unwilling to commit to long-term bookings amid extreme policy ambiguity.

 

“We are completely ready and geared up to service export customers. But they are waiting for clarity on CBAM and on Trump’s final tariff position. Nobody is overstocking or booking long-term orders because they don’t know the duty impact when the material reaches the border,” Jindal said.

 

In response, the country’s largest stainless steel company by revenue, strategically prioritised the domestic market pushing the share of total sales in the domestic market to 94.6 per cent from 91.5 per cent a year earlier.

 

JSL is also developing alternative export destinations including South America, West Asia, Japan and South Korea as part of its mitigation strategy, although the US and EU will continue to be its primary export markets in the long term, Jindal said.

 

Jindal said that the rise in profit came from a combination of operational and commercial levers rather than any one-off factor.

 

“PAT (net profit) growth is a culmination of multiple things including higher volumes, better capacity utilisation, improved yields, cost reductions and focus on value-added products,” he added.

 

The company flagged dumping from China and Asean countries as the biggest industry risk over the coming quarters, warning that heavy inflows could hurt MSME manufacturers and distort the domestic market.

 

“We expect the Union Budget to strengthen quality controls, raise basic customs duty on stainless steel products, and include stainless steel in the national scrap policy,” Jindal said. 

 

On the financial side, the company’s consolidated net debt stood at ₹3,451 crore.