Jindal Saw Q2 FY27 Results (NSE: JINDALSAW)
Signal: Growth decelerated
The read
The key inflection is revenue recovery without earnings recovery: consolidated revenue grew 5.6% YoY to ₹4,471.79 crore, but gross margin contracted 760bps to 36.7%, joint ventures moved from ₹9.43 crore profit to ₹3.42 crore loss, and PAT fell 74.5% to ₹35.28 crore; standalone operating margin also fell to 2.10% from 5.28%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,471.79 Cr | +5.6% | +0.4% |
| Net profit | ₹35.28 Cr | -74.5% |
P&L walk
Consolidated revenue increased to ₹4,471.79 crore, +5.6% YoY and +0.4% QoQ, but gross margin fell to 36.7% from 44.3% as inventory-change expense rose to ₹434.40 crore from an income of ₹102.29 crore in the year-ago quarter; PAT fell 74.5% to ₹35.28 crore after a ₹3.42 crore joint-venture loss versus ₹9.43 crore profit.
Segments
No consolidated segment table is present in the supplied filing text; the standalone primary segment is Iron & Steel products, while subsidiaries reported ₹704.87 crore of quarterly revenue and ₹14.93 crore net loss, and joint ventures contributed a ₹3.42 crore loss.
Key positives
- Consolidated revenue recovered 5.6% YoY to ₹4,471.79 crore after the prior-year base of ₹4,233.60 crore.
- Raw-material cost declined to 53.6% of consolidated revenue from 58.2% YoY, although gross margin still compressed because inventory-change expense rose to ₹434.40 crore from a ₹102.29 crore credit.
- Standalone operating expenses declined 2.7% YoY to ₹1,064.29 crore while revenue grew 13.4% to ₹3,823.80 crore.
- Standalone operating cash flow improved to a ₹949.06 crore inflow in H1FY27 from a ₹27.29 crore outflow in H1FY26, helped by a ₹683.23 crore inventory release.
Key concerns
- Consolidated gross margin compressed 760bps YoY to 36.7%, with the filing not disclosing the cause; inventory-change expense was ₹434.40 crore versus a ₹102.29 crore credit in Q2FY26.
- Consolidated PAT fell 74.5% YoY to ₹35.28 crore even as revenue grew 5.6%, showing severe earnings conversion pressure.
- Standalone operating margin declined to 2.10% from 5.28% YoY and 5.10% QoQ, extending the margin deterioration seen in the recent results series.
- Joint ventures swung to a ₹3.42 crore loss from a ₹9.43 crore profit, while subsidiaries reported a ₹14.93 crore quarterly net loss.
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