JSL - Jindal Stain.

📊 NSE: JSL 🏢 Steel - Large 📅 Last Updated: 12/14/2025 8:38

💰 Financial Performance

Revenue Growth by Segment

Consolidated operating income grew 8.03% YoY to INR 38,562 crore in FY24 from INR 35,697 crore in FY23. Sales volumes increased 23.3% from 1.76 MTPA in FY23 to 2.17 MTPA in FY24, with a projected rise to 2.37 MTPA in FY25 (9.2% YoY growth).

Geographic Revenue Split

JSL exports to over 50 countries; however, the domestic market remains the primary driver. Specific percentage split between domestic and export revenue is not disclosed, but the company maintains flexibility to shift volumes between markets based on demand.

Profitability Margins

Adjusted PAT margin improved from 5.8% in FY23 to 7.0% in FY24. Profitability is driven by a sustained PBILDT/tonne of approximately INR 20,000 over the last four fiscals (FY22-FY25). Q1FY26 reported a healthy profitability of INR 22,015 per tonne.

EBITDA Margin

Consolidated EBITDA is approximately INR 5,000 crore (INR 50bn). The company targets sustaining EBITDA per tonne above INR 20,000, which represents a core profitability metric for the stainless steel industry regardless of price fluctuations.

Capital Expenditure

The company has a planned capex of INR 5,700 crore over the next three years. This includes INR 2,700 crore earmarked for FY26. Key projects include the Indonesia melt shop (INR 715 crore) and downstream expansion in Odisha (INR 1,900 crore).

Credit Rating & Borrowing

Long-term bank facilities of INR 5,900 crore are rated CARE AA; Stable (reaffirmed Oct 2025). Short-term facilities are rated CARE A1+. CRISIL also maintains a AA/Stable rating. Specific interest rate percentages are not disclosed, but liquidity is supported by cash equivalents of INR 1,672 crore.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Nickel (14% content in NPI), Chrome (Ferrochrome), and Stainless Steel Scrap. Scrap and recycled materials account for 60% of the total raw material mix.

Import Sources

Nickel Pig Iron (NPI) is sourced from Indonesia. Ferrochrome is sourced both from the open market and internally. Scrap is sourced globally and domestically. The company is shifting to 'near-by shores' to shorten the supply chain.

Key Suppliers

Sulawesi Nickel Processing Industries (Indonesia JV) supplies NPI. JSL also procures ferrochrome from the open market and utilizes internal synergies following the JUSL acquisition.

Capacity Expansion

Current melting capacity is 3.0 MTPA (2.2 MTPA at Jajpur, Odisha and 0.8 MTPA at Hisar, Haryana). Expansion plans will increase total capacity to 4.2 MTPA by FY27, including a 1.2 MTPA facility in Indonesia.

Raw Material Costs

Raw material costs are highly volatile due to Nickel and Chrome price fluctuations. JSL mitigates this through a 60% recycled content strategy and a 49% JV in an Indonesian NPI facility to secure low-cost raw material supply.

Manufacturing Efficiency

JSL is the largest domestic producer and top 10 globally. Efficiency is driven by the 'Theory of Constraints' (ToC) adoption, which has overhauled planning and sourcing to release working capital.

Logistics & Distribution

Distribution costs are optimized through strategic facility locations in Odisha (East), Haryana (North), and the acquisition of Chromeni Steels in Maharashtra (West) to serve regional markets efficiently.

📈 Strategic Growth

Expected Growth Rate

16%

Growth Strategy

Growth will be achieved by expanding melting capacity from 3.0 to 4.2 MTPA, acquiring Chromeni Steels for cold-rolling expansion (INR 1,618 crore), and the Rathi Super Steel acquisition (0.16 MTPA) to enter the long products market (wire rods/re-bars).

Products & Services

Stainless steel coils, sheets, plates, razor blade steel (world's largest producer), specialty stainless steel, wire rods, and re-bars.

Brand Portfolio

Jindal Stainless, Rathi Super Steel (acquired), Chromeni Steels (acquired).

New Products/Services

Expansion into 'Long Products' (Wire rods and Re-bars) via the Rathi Super Steel acquisition and increased focus on value-added cold-rolled products.

Market Expansion

Targeting Western India through the Chromeni Steels acquisition and Southeast Asia through the Indonesia JV. Focus on high-growth sectors like Automotive, Railways (Vande Bharat), and Ethanol blending.

Market Share & Ranking

Ranked #1 stainless steel producer in India and #5 globally (excluding China).

Strategic Alliances

49% collaborative JV with Sulawesi Nickel Processing Industries Holdings Pte. Limited for the Indonesian melt shop facility.

🌍 External Factors

Industry Trends

The industry is shifting toward decarbonization and circular economy models. JSL is positioning itself by using 60% recycled scrap and targeting net-zero emissions by 2050.

Competitive Landscape

Primary competition includes large-scale Chinese producers and smaller domestic players in the 200-grade series.

Competitive Moat

Moat is built on massive scale (3 MTPA), cost leadership through Indonesian NPI integration, and a dominant domestic market share. These are sustainable due to high capital entry barriers and integrated supply chains.

Macro Economic Sensitivity

Highly sensitive to domestic infrastructure spending (PM Gati Shakti) and global stainless steel demand. Indian per capita consumption is 2.8kg vs world average of 6kg, indicating high growth potential.

Consumer Behavior

Increasing demand for sustainable and 'green' steel is driving JSL's ESG initiatives and recycled content targets.

Geopolitical Risks

Trade barriers and anti-dumping duties are critical. The industry faces pressure from Chinese imports routed through ASEAN countries to bypass duties.

⚖️ Regulatory & Governance

Industry Regulations

Subject to BIS (Bureau of Indian Standards) grades for stainless steel and environmental norms regarding GHG emissions and water consumption in manufacturing.

Environmental Compliance

Committed to 50% reduction in carbon emissions by 2035 from a 2022 baseline (1.98 tons CO2/ton of steel). ESG projects are part of a INR 1,200 crore infrastructure/ESG budget.

Taxation Policy Impact

Not specifically disclosed, but the company is subject to standard Indian corporate tax rates and import/export duties on steel and raw materials.

⚠️ Risk Analysis

Key Uncertainties

Volatility in Nickel prices and the potential for increased dumping from China/ASEAN are the primary risks, with potential impact on EBITDA/tonne if margins fall below INR 15,000.

Geographic Concentration Risk

Significant concentration in India (Odisha and Haryana plants), though the Indonesia JV provides geographic diversification of the melting base.

Third Party Dependencies

Dependency on Indonesian partners for the NPI facility and global scrap suppliers for 60% of raw material needs.

Technology Obsolescence Risk

Low risk in core steel melting, but the company is investing INR 250 crore in specialty steel (ESR Furnace) to stay ahead of technology shifts in high-end applications.