Jindal Stainless cuts FY27 volume outlook but lifts EBITDA per tonne guidance

what happened

India's largest stainless steel maker, Jindal Stainless, reported its Q2 2026 results on Thursday and trimmed its sales volume growth target for fiscal 2026-27 to 4-6% from 7-9%. Management blamed disruptions in the first quarter, linked to the West Asia conflict, which hit fuel supplies and prices. At the same time, the company raised its expected EBITDA per tonne to Rs 22,000 from the Rs 18,000-20,000 range it had set at the start of the year.

Chief executive Tarun Khulbe said: "The first quarter was badly affected by the war because of fuel unavailability and high fuel prices. In the second quarter we overcame that. Availability is better now, but price swings remain." Jefferies India estimates EBITDA rose 3% year on year and 8% quarter on quarter in the second quarter, in line with its expectations. The bank's analysts set a target of Rs 970 against Rs 733.35 when the report was prepared, while the shares closed Thursday at Rs 708.60. The stock is down 17% so far this year.

why it matters

Two signals matter for the market here. A lower volume forecast points to weaker demand and supply disruptions, while a higher per-tonne profit outlook suggests the company is protecting its margins. A further risk is the possible EU restriction on scrap exports, which could make raw materials more expensive for Indian producers. Jindal is reducing its reliance on scrap through nickel pig iron and its Indonesian operations.

market impact

Indian steel: weaker volumes but higher EBITDA per tonne supports the company's margins

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