Jindal Stainless Q1 Net Profit Jumps 7.6% to ₹769 Cr

Jindal Stainless Ltd on Monday reported a 7.6% year-on-year rise in consolidated net profit to ₹769 crore in the June quarter, on higher revenues.

During the same quarter a year ago, the company had posted a net profit of ₹715 crore, an exchange filing said.

The company's revenue from operations increased 10.5% year-on-year (YoY) to ₹11,279 crore in Q1 FY27 from ₹10,207 crore in the April-June period of the preceding fiscal.

Its consolidated net debt stood at ₹2,950 crore at the end of the June quarter.

Jindal Stainless Managing Director Abhyuday Jindal said the performance remained resilient against an exceptionally dynamic operating environment, marked by supply chain disruptions and evolving global trade conditions.

Arising from the West Asia crisis, the initial weeks of the quarter witnessed disruptions in the availability of industrial gases, the company said, adding its management proactively mitigated the impact by increasing the use of piped natural gas to offset the limited availability of propane and LPG, the company said in a statement.

Notwithstanding these remedial measures, the company had to moderate production across its manufacturing facilities on a temporary basis. Despite these challenges, the company reported finished goods sales volumes of 5,80,805 metric tonnes in Q1 FY27 and maintained healthy financial growth by continuing its traction on value-added products.

The export business remained stable amid a challenging global environment. A diversified market portfolio, supported by expanding opportunities in South Korea, Japan and Brazil, and continued presence in Europe and the US, helped maintain exports at 11% of the overall sales mix.

In a media call, Jindal emphasised the need to check rising imports from select countries, particularly China.

Such imports pose a challenge to domestic investments amid India's growing stainless steel demand, he said, urging the government not to extend the quality control orders (QCOs).

"The company’s robust performance was underpinned by healthy demand across key end-use sectors including mobility, infrastructure, manufacturing, and consumer sectors. The automotive segment remained a strong growth driver while special-grade volumes also rose in Q1FY27," the statement said.

Sales to the white goods segment and metro rail projects witnessed healthy growth during the quarter, while demand from the railway sector remained steadfast. The company also secured orders for specialised stainless steel grades across the power, oil and gas sectors.