Jindal Stainless shares slide 7% even as Q1 profit rises; here's why

Jindal Stainless fell 7 per cent after the company flagged caution over tariff uncertainty with the US, following its Q1 results

Shares of Jindal Stainless fell over 7 per cent on Thursday, despite a 10.2 per cent year-on-year (Y-o-Y) rise in the June quarter profit, as management flagged caution over tariff uncertainty with the US.

 

The iron and steel maker's stock fell as much as 7.29 per cent during the day to ₹680.5 per share, the steepest intraday fall since April 7 this year. The stock was trading 3.18 per cent lower at ₹710.6 apiece, compared to a 0.57 per cent decline in Nifty 50 as of 12:25 PM. 

 

Shares of the company have risen by over 12 per cent in the last eight sessions until Wednesday and currently trade at 3.7 times the average 30-day trading volume. The counter has risen 1.9 per cent this year, compared to a 3.6 per cent advance in the benchmark Nifty 50. Jindal Stainless has a total market capitalisation of ₹58,780.08 crore.  Track LIVE Stock Market Updates Here

 

Jindal Stainless Q1 results

The company reported a 10.2 per cent Y-o-Y increase in consolidated net profit in the first quarter of FY26 (Q1 FY26) to ₹714.16 crore on the back of higher sales and an increase in value-added products. The stainless steel manufacturer’s net profit in Q1 FY25 was ₹648.06 crore.

 

Revenue from operations for Q1 FY26 on a consolidated basis was up 8.2 per cent at ₹10,207.14 crore compared to ₹9,429.76 crore in Q1 FY25. Sequentially, revenue was almost flat while net profit was up 20.8 per cent. Sales in Q1 FY26 increased 8.3 per cent Y-o-Y, said the company in a statement.  ALSO READ | Hero MotoCorp share gains ground despite muted Q1; what's next?

Jindal Stainless flags trade uncertainty with the US

Abhyuday Jindal, managing director, said there will be uncertainty there due to the present ties between India and America. "But we are extremely bullish on the domestic market and that is where the focus is," he said during a post-results media interaction.

 

Major Indian sectors like white goods, auto and infrastructure are growing, he said. "With further push in public expenditure and private capex, we will see an increase in our domestic supply and demand. We are expecting stainless steel demand to grow at 9-10 per cent CAGR," said the company. 

Motilal Oswal on Jindal Stainless Q1 results 

The brokerage noted that Jindal Stainless reported an in-line revenue for the first quarter of FY26. Adjusted Ebitda beat estimates due to lower-than-expected costs. Motilal Oswal has a 'Buy' rating for the stock. 

 

Ebitda per tonne improved 27 per cent sequentially, supported by favourable pricing and cost efficiencies. Sales volume for the quarter stood at 626 KT, up 8 per cent Y-o-Y and down 3 per cent Q-o-Q, in line with estimates, Motilal Oswal said. The share of exports rose to 9 per cent from 8 per cent in Q4FY25.