Ladies and gentlemen, good day and welcome to Jindal Stainless Limited Q4 FY 2026 earnings conference call hosted by Ambit Capital Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Satyadeep Jain from Ambit Capital Private Limited. Thank you. Over to you, Mr. Jain.
Thank you, operator. Good evening, on behalf of Ambit Capital, I thank the management team of Jindal Stainless for the opportunity to host their Q4 FY 2026 earnings conference call. We have the following members of management with us today. Mr. Abhyuday Jindal, Managing Director. Mr. Tarun Khulbe, CEO, CFO, and Wholetime Director. Mr. Kapil Arora, Head of Finance. Mr. Angad Khurana, Head of Investor Relations, and Mr. Abhishek Tambi, who is the part of IR team. I now hand over the call to Mr. Angad Khurana. Thank you all, over to you.
Thank you, Satyadeep. Good day, everyone, thank you for joining us for the company's Q4 FY 2026 earnings call. I hope you all had a chance to review the results and the accompanying presentation uploaded on the exchanges and on our website earlier. Our discussion on the call will follow that presentation. Before we begin, I would like to remind you that some of the statements made today may be forward-looking in nature and are covered by the disclaimer on slide two of the earnings presentation. Joining me on the call today is the senior leadership team, who will take you through the key business developments and the performance for this quarter. After the remarks, we will open the floor for their questions. With that, let me hand it over to our Managing Director, Mr. Abhyuday Jindal, to take you through the highlights. Over to you, sir.
Thank you, Angad, and a very good evening to everyone. I would also like to welcome you all to our earnings call. I will begin by outlining the key business highlights for the quarter and year ending March 2026, and the progress we continue to make across our priority sectors. Following that, Mr. Khulbe will take you through our operational and financial performance. Continuing the positive momentum, our sales volume in FY 2026 grew by eight percent year-on-year, supported by sustained domestic demand amid the volatility in the export market. In the domestic market, JSL performance was consistent, underpinned by demand momentum from key sectors such as automotive, ornamental pipe and tube, industrial pipe and tube, railway, metro, lift elevator and white goods. Last quarter, we had initiated a calibrated shift in our brand strategy to complement our strong B2B leadership with a sharper consumer-facing presence.
The onboarding of Ranveer Singh as the company's first-ever brand ambassador and the launch of a nationwide multimedia campaign marks a structural step up for our natural brand presence. The Jindal Infinity campaign focuses on authenticity and informed choice, addressing long-standing issues of counterfeiting and quality opacity in key segments such as pipe and tube, while reinforcing stainless steel relevance. In parallel, we have also associated with Sunrisers Hyderabad to leverage the cultural scale and emotional equity of cricket to deepen engagement with younger and mass audiences. Together, these initiatives will help strengthen top-of-mind recall, support channel partners through co-branded outreach, and enhance long-term brand equity as consumption-led applications of stainless steel scale up across India. We believe the timing is appropriate as we enter our next phase of growth, with brand building acting as a strategic enabler of demand creation, differentiation and sustained value creation.
Stainless steel demand in the passenger coach segment also increased traction from strong growth. Also saw increased traction from strong growth. The modern AC coaches, which use both shell and stainless steel underframes, will contribute to the demand of stainless steel for coach manufacturing. Higher activity in metro projects across the country also supported the strong delivery momentum. Going forward in FY 2027, several new metro projects are slated to go on stream in Bengaluru, Mumbai, Gurugram and Delhi. With export demand for India-made metro coaches also picking up, the demand for stainless steel is expected to witness a jump of two to three times over the next three to four years. The Indian lift and elevator industry is expected to witness steady growth in FY 2027, driven by urbanization, infra development, rising demand for efficient vertical transportation systems.
Developments in Middle East continue to influence energy markets and global supply chains. The ongoing situation has affected the availability of key industrial gases, including propane, LPG, natural gas, ammonia. In parallel, disruption in shipping lanes have resulted in route diversions, extended transit periods and intermittent cargo delays, adding pressure on logistics and cost structure. We are monitoring the situation closely for improved clarity around fuel allocations and the normalization of supply conditions. On the export front, global trade sentiments continue to remain subdued due to ongoing trade and geopolitical uncertainties. Despite these headwinds, JSL demonstrated strong execution capability, delivering higher export volumes on a quarter-on-quarter basis, maintaining a focus on expanding into markets such as Japan, Korea, Taiwan, and Germany. Inferior imported materials continue to enter India at a large scale.
The temporary suspension of QCO is a matter of concern and poses a discouraging setback for quality-focused domestic industry players. We remain hopeful that the government will strengthen and enforce frameworks that uphold quality standards to protect consumers and MSMEs alike. In this environment, Jindal Stainless retains its market share through its agility, cost competitiveness, and a customer-first approach. On sustainability front, JSL continues its streak of ESG excellence, achieving an EcoVadis score of 71 out of 100 in Q4 2026 with a bronze medal recognition.
In parallel, our continued commitment towards a cleaner and more resilient energy mix saw the partial commissioning of a 315 MW solar wind hybrid power project in collaboration with Oyster Renewable Energy this quarter. At JSL, we remain steadfast and continue to march towards our long-term decarbonization goals. With this, I would like to hand over to Mr. Khulbe to discuss operational and financial performance. Thank you.
Thank you, Abhyuday. Good evening, everyone. Welcome to the call. I would like to begin by providing a detailed overview of our operational and financial performance. Despite geopolitical headwinds, our Q4 FY26 deliveries were at 0.64 million tons, remaining steady on a year-on-year basis. Our Q4 consolidated EBITDA increased by around 37% year-on-year and around three percent quarter-on-quarter to INR 1,455 crores. Our consolidated PAT stood at INR 804 crores, an increase of around 41% year-on-year and around one percent quarter-on-quarter basis. For FY26, our deliveries stood at 2.57 million tons with an increase of around eight percent year-on-year.
Consolidated EBITDA increased by around 19% year-on-year to INR 5,560 crores, and consolidated PAT stood at INR 3,185 crores with an increase of around 27% year-on-year basis. We are pleased to report continued improvement in our balance sheet. As of March 31, 2026, our consolidated net debt has further reduced to INR 3,040 crores with a net debt to EBITDA ratio at zero point five five x, comfortably below one, and a net debt to equity ratio of zero pint one five x, reflecting our disciplined approach to financial management. This robust financial management continues to place in the better position to navigate ongoing macroeconomic challenges. On our subsidiaries front, all subsidiaries have shown improvement and contributed positively to the group's overall EBITDA.
The announced CapEx plan is progressing well and remains on track. The 1.2 million tons per annum stainless steel melt shop in Indonesia is successfully commissioned ahead of schedule, taking the company's total melting capacity to 4.2 million tons per annum, including 3 million tons per annum in India. In parallel, downstream expansion projects in India are advancing as planned, including the upcoming commissioning of a 1.1 million tons per annum HRAP line and a 0.17 million tons per annum CRAP line at Jajpur. To further strengthen downstream integration, the company announced an additional INR 900 crores commitment towards augmenting cold rolling capacities at Hisar and Kharagpur.
With these investments, our value-added capabilities will be enhanced, increasing CRAP capacity to 2.67 million tons per annum by FY 2028 and aligning the expanded mill capacity with downstream readiness. This integrated expansion will support our sales volume target of 3.5 million tons per annum by FY 2029, translating into a robust double-digit compounded growth over the next three years. Jindal Stainless Steelway Limited, a subsidiary of JSL Group, has commenced operation in its first stainless steel fabrication at Patalganga, near Mumbai. Built with an initial investment of approximately INR 25 crores, the facility marks a strategic milestone in our journey towards offering integrated end-to-end solution for India's infrastructure sector. This reinforces our positioning beyond material supply into value-added fabrication while supporting sustainable and long-life infrastructure development.
I'm pleased to announce that in addition to interim dividend for FY 2026 of INR 1 per share, the board has recommended a final dividend of INR 3 per share with a face value of INR 2 each, subject to approval of shareholders at the ensuing annual general meeting, aggregating to a payout of nearly INR 330 crores in total for FY 2026. The quarter witnessed energy-related constraints emerging amid geopolitical uncertainties affecting West Asia, a key sourcing region for industrial fuels such as propane, LPG, and natural gas that are critical to stainless steel manufacturing. Despite this, Jindal Stainless remains committed to maintaining operational resilience and supply chain stability. The company continues to proactively monitor global developments and adapt its strategies to ensure sustained growth and business continuity in the times ahead. India's stainless steel demand remains resilient, supported by robust fundamentals.
The stainless steel continues to have a bright future as India's inevitable materialistic rise continues to unravel. With that, I conclude my remarks and invite the moderator to begin the question/answer session. Thank you.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone who wishes to ask questions may please press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Parthiv Jhonsa from Anand Rathi. Please go ahead.
Yeah, hi. Thank you for the opportunity. Congratulations on good numbers despite, you know, gas disruption. My first question is pertaining to the guidance. I believe sir just gave a guidance of FY29. Is it possible to give some volume growth guidance as well as EBITDA guidance for FY27? Because that's, like, very immediate. Considering the current global headwinds, if you can give a guidance.
In terms of volume growth for FY 2027, we are expecting at least eight to 10% growth. Seven to nine percent, sorry. seven to nine percent growth in volume this year. For EBITDA per ton, looking at the kind of uncertainty there is, till H1 of this year, we are giving a guidance of INR 18,000-INR 20,000 EBITDA per ton. Depending on the situation, maybe after six months, we might revise this figure also.
Okay. you are actually sticking to that 18,000-20,000 range despite the overhang from the Middle Eastern crisis?
Correct. Correct. We're still confident of delivering 18%-20% and give at least a seven to nine percent volume growth in the entire year.
Okay. Just to take this particular question forward, I believe there would be some volume disruption due to this entire crisis in the month of March, right? What will be the volume disruption, and what is the quantum of gas you have started receiving or the impact is there, you know, especially for the first quarter?
In terms of at least, because availability has picked up at a higher cost, we don't see availability as a challenge in the month of May, but cost has significantly gone up.
What will be the impact, sir, from this one particular cost, like the cost increase on the EBITDA level?
Again, it's the same thing. We still stick to our blended guidance. Despite this cost going up, we're still confident of delivering 18 to 20.
Sure, sure. Sir, quick question, just if you can give a breakup of the, 200, 300, 400 series.
Yeah, sure, Parthiv. For Q four FY 2026, 200 series was around 38%, 300 series was around 43%, and 400 series was around 19%.
Perfect. Perfect. Thank you so much, sir. If any further question, I'll join back with you.
Thanks.
Thank you. The next question is from the line of Alok Deora from Motilal Oswal. Please go ahead.
Hi, good evening. Sir, just had couple of questions. First is on the export side. Export proportion has come down, and it's lower than what we used to do, you know, in the normal state basis. Just wanted to understand what's happening there and where can we see some normalization. If you can guide some export, how much would be exports in FY 2027.
Export, as we can see that, for the year FY 2026, it is having a share of eight percent of our total sales, which was in FY 2025 it was nine percent, so one percent lower, but on the expanded base. Export market has different time, having different challenges, we can say uncertainties. As a company, we are able to still sail through and maintain our share. We are still able to manage with our important market of Americas, both North and South America. We are trying to develop newer markets. We are trying to increase our footprints into the newer markets. Right now, yes, due to, again, this war, the disruption happened, still we are continuously working.
Even with the CBAM coming and creating disruptions with whatever we have done and our relationship with the customers there, we are still able to manage a certain level of volume. With all these efforts, we believe, even with our increased guidance of seven to nine percent of volume increased guidance what we have given, still we should be able to manage a share of eight to 10% of export in that increased volume.
Got it, sir. sir, on the EBITDA per ton, I mean INR 18,000-INR 20,000, the range which we are giving for the 1H, and we are more than nearly 20, we are comfortably above 20, in the current, you know, run rate basis. Is it that kind of pressure which we are seeing in the, in the cost, you know, in the first quarter that, you know, we are scaling down on the EBITDA guidance?
No, it's basically the uncertainty. See, like I said, the cost has gone up, everything we are not able to pass on to our customers because our competitors, importers, I mean the people who import material, those companies in those countries, the cost has not gone up. Definitely because of this we feel that 18%-20% is possible.
For H1?
For H1.
Then we definitely review the whole thing, because this cost increase has been very sharp and sudden. It is not only in fuel, even in the utilities like, ammonia. Yeah Acids, all these consumables were also impacted. Sure.
Sure. Got it, sir. Yeah, that's all from my side, sir. Thank you and all the best, sir.
Thank you.
Thank you. We'll take the next question from the line of Amit Dixit from Goldman Sachs. Please go ahead.
Yeah, hi. Good evening, everyone, and thanks for the opportunity. Congratulations for a good set of numbers this quarter. A couple of questions from my side. The first one is essentially the standard one on regulatory environment. While stainless steel demand outlook looks good, there has been, I mean, absolutely no, I would say, measure from the government for controlling imports. In fact, QCO suspension, all these are quite detrimental for us, and we are looking to expand further in Maharashtra. Also just wanted to understand the thought process, your thought process in particular, given that, you know, we are in a dichotomous situation where we are expanding, but government is not coming with any support. What gives us so much confidence to expand? I mean, that is my first question essentially.
Absolutely, a very valid point and valid concern. This is true that this QCO which was to ensure a certain quality level of product being produced and used within the country. Suspension of that opens the gate for the import of substandard product as well. And this definitely impacts the sentiments and creates a confusion amongst us amongst the stainless steel industry that what exactly they should be doing because there's a big portion of even MSMEs and the small players who have spare capacities available with them. They were believing that with the improved capacity utilization, they were also planning to expand and create more capacity.
Even this kind of sudden policy change, even though it is for six months only, creates, definitely creates a bit of confusion. Coming to we as a company, okay, we have these things definitely, the sentiments and all these things definitely impact, but we also have our strength. We are into working. We have diverse portfolio of products. We work into each. We, we produce, we serve each area of the stainless steel, stainless steel consumption. Beyond that, also we have been seeing that there is also a mind shift, I will say, in the user that earlier, like there was, we could see that earlier people used to make their consumption decision based on the L1 basis, lowest cost.
We see that life cycle cost has. It is normally, people are considering life cycle cost, for the, for making the decision while choosing a product. There, stainless steel, gets an advantage. We could see many new applications where stainless steel is getting accepted and being used even in the infrastructure. We believe that this trend should continue because people are interested in creating products, which are, when it comes to mobility, which are lightweight and more energy efficient, when it comes to infrastructure which is long-lasting, maintenance-free. This kind of acceptance also gives us a confidence that going forward, stainless steel will grow even beyond the natural growth, whatever it is having. We as a company, we believe that we should be ready to serve these requirements, in the future.
Absolutely, Amit, like Mr. Khulbe said, you know, Dialogue with the government is consistently on. Already, like he said, that we are approaching the government as an industry, that the MSMEs sector, the producers who are willing to expand and increase their capacity, they will be negatively impacted. You know, QCOs protecting our borders from substandard material was giving confidence to MSMEs to expand further. We as a company, as we always share, we are always at the higher end of the stainless steel value chain, supply chain, and we continue to be present there and grow that market share as well. The other side, apart from QCO, we are also working on anti-dumping. They are appointing verifiers in Q1 this quarter. That anti-dumping investigation process should also continue.
Okay. That's great to know. The second one is essentially on defense. Now, you have highlighted in the press release that there have been couple of, you know, we have been supplying in different sectors. Now, typically, defense sector involves a long approval process, and it's very heartening to know that you have crossed the bridge. Just wanted to ask, you know, because the defense prospects are quite bright in the country with a lot of domestic platforms being built. Just wanted to understand that, you know, what are the other new products or, you know, new grades of steel we are developing? If possible, to share what kind of platforms we would be engaging in.
Also, if you have in mind something of like, I know it's currently very small, but let us say five years hence, what could be the portion of revenue from defense segment?
Amit, you know, defense being such a critical area, I would not like to, on a open forum, share what kind of products or applications we are working upon. It's in a variety of areas, from land systems, to air systems, to drones in every area, to our always with our satellite launches, we're all part of. If I can say more focus is more towards aerospace, that's where we see good traction coming in and we see good volumes coming in. Defense, like I said already, land systems, good work is happening. Because being a very strategic and very critical, I would not like to share. What I can say is this year also we will be showcasing some very interesting products made out of Jindal Stainless materials.
Okay, sure. Maybe I will discuss with you one-on-one on this.
One-on-one is better.
Great.
It's a little critical, and they also request us not to share.
No, no. Fair, fair enough. Sure. Great. Thanks for the opportunity and, congratulations for good performance and best of luck.
Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead.
Hi, sir. Thanks for the opportunity. Congratulations on good set of numbers. I have a lot of questions. First is our balance sheet is in the best of shape. How should we look at incremental growth CapEx, specifically Maharashtra? If you can also qualitatively help us understand how you are planning to start from downstream, then upstream, land acquisition. I think that's the first question. Second question. Sir, I'll just wait over here. I'll let you answer then I'll come to the second question.
Yeah. Absolutely, like you said, exactly the first process is on of land acquisition, and a substantial portion has been acquired already. We still expect most of this year to go in land acquisition. We will start, like you mentioned, first we would like to put up downstream capacity and subsequently very fast come up with upstreaming as well. You know, We are still, every day this is being worked upon, and probably we need another few months to come out with a clear-cut plan. Absolutely, as of now, land acquisition is in full force in Maharashtra at the moment.
Great. Sir, what should be the CapEx number that one should bake in for FY 2027 and FY 2028, overall at the company level?
Not per se Maharashtra you're saying. You're saying overall now.
For FY 2027 our CapEx guidance is around INR 2,800.
INR 2,800.
Around.
For FY 2027.
2,600.
INR 2,600 for FY 2027. Yeah.
Sir, for FY 2028?
We have yet to go.
We will come back to you with that one.
Sure. Just moving to the second question. How should we look at the profitability of RKEF? I think it would be throwing amazing cash flows right now. Possible to give some color over here, its contribution at the EBITDA level, how should we read into it? That's the second question, first part. The second question, second part is, 1.2 million ton slab from Indonesia. Basically, how should we look at the contribution on the numerator and the denominator when we look at incremental EBITDA per ton?
RKEF business, that is the nickel business. Even in the past we have discussed that, when we had made the investments, I mean, the strategy just to recall that strategically, it is more for the raw material security. Yes, from the return point of view, it's a bit volatile business. In the past we had given a guidance that anything from $500-$1,500 per ton of nickel kind of a EBITDA we can expect. With the sharp increase of nickel in the last quarter, the actual EBITDA has come around $3,000 per ton. Ritesh, these things keeps on changing very fast because Indonesian government also, they keep on adjusting the nickel ore prices also accordingly. Their also formula keeps on changing.
This is the current position on it, the current financial numbers are. Now, so far as, our, this, melt shop is concerned, so we intend to bring the slabs over here and process, in India. In a way.
That in putting up a mesh up there in place of over here strategically placing ourselves in order to be where the nickel is. Whatever EBITDA guidance we are providing that will have the value chain including from the.
Yeah. Taking that into account also we've given the 18%-20% for H1 guidance.
Sure. Sir, Tarun Khulbe sir just to get a clarification on the $3,000 per ton number. I understand, please correct me if I'm wrong, 200 KT 14% nickel content. So are we looking at 28 KT $3,000 into our stake of, say, 50%? Is that the right way to?
Ritesh, it varies. I mean, like, it depends upon the ore quality also keeps on changing, and accordingly the nickel output also keeps on changing. Whatever the nickel production comes out, for the last quarter it was around $3,000 per ton.
Right. sir, what I'm trying to appreciate is the underlying EBITDA per ton, if we had to strip out this nickel-led volatility. That's what I was trying to If you could help, understand that.
So this I think,
Angad Khurana will get back to you with this calculation.
Sure. Sure. Just coming to the next question. Sir, you did indicate on incremental HRAP and CRAP capacities. Are we looking at some imbalance over the next six months till the HRAP facility comes up in Jajpur? Or if you could help us with the timeline on both by month for HRAP as well as CRAP, just to appreciate the mass balance.
One thing, I appreciate your concern, but, some of our equipment what we have invested in the past they have the capability of, doing both HRAP as well as CRAP. That gives us the flexibility. Also depending upon requirement, our investments in Indonesia gives us the flexibility even to get the coils, in place of slab. That also, the possibility remains with us. We are confident of balancing our needs, as the-
As the market demands.
Sure. Just last question I'll squeeze in. Sir, you indicated a lot of gases in your starting remarks, which potentially had some impact on the operations. How are we looking to mitigate this assuming the Middle East situation doesn't improve? Any mitigation measures that you would like to highlight, that would be-
Absolutely. Already a lot of effort is happening, Mr. Khulbe, Kenneth.
Ritesh, it is like this. When this disruption happened, as soon as the war started, at that moment, we, our primary gaseous fuel in both our integrated steel plant at Jajpur and Visakhapatnam, was propane and LPG. Whereas in our Chromeni Mundra plant, natural piped gas we use as a fuel. What we realized that on the LPG the government, the state government put a ban because they wanted to keep it or they allocated those quantities for the public use, not for the industrial use. On the natural gas there was a disruption. They reduced the quantity, but never stopped. They very quickly we found them, you know, increasing the availability of the natural gas.
Looking at this we realized that we need to diversify ourselves. In our Jajpur plant already we have worked on using the natural gas also. A portion of it which in fact we have started using it, which we will gradually increase. We are working on it. Visakhapatnam plant also we are looking in the longer term what can be done. Even in Jajpur and at other places, coal gasification plants and syngas, these are also the possibilities.
East India, East India we will look towards coal gasification and syngas. pipe natural gas wherever we can include. Also to replace ammonia, we're going for green hydrogen. Already in Jajpur 600 MM cube plant will be up and running in June, July. Visakhapatnam also at 90 will increase to 400 almost in the next few months. That way in all fronts, to not ensure or to ensure that this impact doesn't come, we're already working on it.
Yeah. Even in our Ghaziabad plant we are now working on the natural piped gas.
Pipe natural gas for Ghaziabad also.
In a way we have started taking actions on multiple fronts so that in future we, you know.
We are not impacted by any disruption.
At least our risk is mitigated.
There's a security on this. Yeah.
Perfect, sir. Thank you so much for elaborate answers. Thank you so much. Thank you.
Thank you. The next question is from the line of Pinakin from HSBC. Please go ahead.
Yeah. Thank you very much. Given the 1.2 million ton Indonesian JV has now been commissioned, can you again walk us through how that facility will be utilized, whether you'll bring it to India or sell it from there? How the accounting will work. I mean, should we assume that entire flow-through into EBITDA and then a minority interest going out or a 50% attributable? Just trying to understand that.
At this stage our intent is to bring the slabs to India and then process them over here.
From the accounting perspective, since it is a subsidiary, so it will get line by line consolidated in our numbers. As per the accounting standard, the minority share will be calculated and shown separately.
Understood. Does the FY 2027 guidance of eight to 10% and INR 18,000-INR 20,000 EBITDA per ton build into some volumes from this capacity facility?
Our business plan is accordingly built. The guidance of seven to nine percent on the volume and INR 18-INR 20 on the EBITDA per ton factors that.
Thank you. My second question is on Indonesia, right? There has been a lot of noise and news about policy intervention from the government, whether it is on nickel, whether it is on coal. What is the company's view of the regulatory outlook or the framework over there? Are there any potential risks to the Indonesian operations from any change in policy?
That is exactly why if you see our timing was absolutely on point because we already started hearing Indonesian government talking of restrictions, talking of duty, which is why at stage 1 we went and invested in our RKEF. That the Indonesian government was talking about banning nickel ore export, that way we invested in NPI. Already government is talking about further valuation should happen in Indonesia, further restrictions that you yourself are saying could come, which is why we took that step and went and invested in a steel melt shop there also, stainless steel melt shop there also. Even Government of India is encouraging these kind of investments because they have realized that nickel is not available in the country.
70% to 75% of the world's nickel supply comes from Indonesia, so it was absolutely logical step for a company of our size to go to Indonesia. Because we've taken these measures, we feel no restriction from Indian government or Indonesian government should come on Jindal Stainless.
Got it. This is very, very helpful. Thank you very much.
Thank you. The next question is from the line of Vikas Singh from ICICI Securities. Please go ahead.
Hi, sir. Good evening, and thank you for the opportunity. Sir, my first question is, after all this renewable power, thing which we are doing, how should we look at our products, acceptability in the European market, which currently going through the CBAM process? Have you got any, you know, data or the like steel got EUR 75 kind of the CBAM cost? Have you got anything like that?
That is the similar. I think the default value they're putting on all metal companies, so on steel, stainless steel at the moment is similar kind of value like you're saying. I think we all are waiting for verifiers to get appointed by European Union. That is something that the step has to be taken at their end. We as a company are completely geared up. Already, 85% plus on scrap, moving more and more to renewable energy, green hydrogen, working with our supplier already to work on their supply chain to add more green products. We are absolutely ready as a company. We have already gone and got scores of various agencies, domestic and international.
We're actually waiting for European Union to give us some more information, show us more, I would say, show us more light of the way forward, because we as a company have done pretty much everything or, most things are in the pipeline at the moment.
Noted, sir. Sir, my second question pertains to our basically mix. If I'm not incorrect, previously we were supposed to get the Indonesian slab, get it rolled here, and then sold in the market.
Correct.
considering your guidance, it doesn't seems like that either we are utilizing that facility fully or the domestic facility to the full extent. Just wanted to understand the how it should be looking into.
Melt shop has just come online right now. Any melt shop does take time to stabilize and to give output. That's why we are quite confident in our balancing, I would say, Mr. Khulbe can add. We have that combo line.
Yeah.
The way the market demands, we are quite flexible to change our product range also.
Noted. Sir, let me put it in other way. If I should look at including the Indonesia capacity and the timelines between your Maharashtra facility may come up, shall we assume that for the next three to four years we would probably more likely on nine to 10% volume growth story before the Maharashtra comes in, even though the international situation normalizes?
We have already given the statement that by FY 2029 we are targeting to be a player of around 3.5 million, which takes, which answers practically all your questions.
Three and a half million sales.
Yeah, INR three and a half million sales. All our CapEx, whatever we have announced, they're aligned to that. This is after taking care of all our investments, declared in the past and recently what we have announced, all that is going to take care of it.
Noted, sir. That's all from my side, and all the best for future.
Thank you.
Thank you. The next question is from the line of Renjith Sivaram from Mahindra Manulife Mutual Fund. Please go ahead.
Yeah. Hi, sir. Just wanted to understand, like, what are the cost pressures, if you can just give us some color on that, whatsoever dependent on, dependence how much of LPG or natural gas are we dependent on, and how much has the cost of these increased? Is there any compensation to that?
In terms of cost, like we mentioned, has gone up close to two point five to three x of what we were paying. I'm not understanding the first part in terms of how much do we consume you are asking?
Yeah. That we are able to quantify that. You have told that.
No, no. I really, honestly, I don't have those figures with me right now. That is something that possibly we would not like to share. That's why we even with this cost increase, I'm giving you the EBITDA per ton guidance of INR 18 to INR 20, factoring in this cost increase.
We are able to pass on these prices. That's what you mean to say.
No, I'm not saying that also. I'm not saying that also. Some cases we are, some cases we are not. We have to look at our competitors in mind also. Leading to all these factors, like I said, sometimes we are, sometimes we are not, and that's why the blended rate is something that we're quite confident of achieving.
These prices also fluctuate.
There's so much uncertainty that you don't know what will happen.
Okay. Okay, sir. Thanks.
Thank you.
Thank you. The next question is from the line of Satyadeep Jain from Ambit Capital. Please go ahead.
Hi. Thank you. Sir, some follow-up questions to some of the earlier questions which have been asked. The Indonesia SMS is now up and running. The Jajpur HRAP will come certain later in the year. You do have the capability to maybe get some coils. Just trying to understand the scenarios you're looking at for FY 2027. You're also looking at a possibility that you get some slab and give it on job work basis till the HRAP come, and is that part of the guidance you're looking at for FY 2027?
FY 2027 guidance, volume guidance already, we have provided, which is seven to nine percent, and that takes care of all these uncertainties. Already we made a statement that we have equipments, which can do both HRAP as well as CRAP on one hand, and also we are having the possibility of getting the coils from outside directly from Indonesia.
Basically, you've given EBITDA per ton guidance for 1H. If you look at the entire year, this getting slab because you have the capability will not impact EBITDA per ton on those volumes, right?
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Volume we have given. EBITDA, H1 purposely, when Mr. Jindal was giving, he also stated that so much of uncertainty of the cost movement. There's gas availability and movement. That is why we said that while we are providing this volume guidance for the whole year and EBITDA guidance for H1, but then we'll be reviewing it at the H1, then, basis the situation we can revise the same.
Okay. The 3.5 million tons you've guided to for FY 2029, if we look beyond FY 2029 also, do you need Maharashtra for further volume growth beyond 2029? Or with the existing capacity, how do we look at volume growth beyond 2029?
Definitely after FY 2029, Maharashtra is going to be our major focus. That doesn't mean that if there is any delay at Maharashtra level, then we will not be able to add further equipments in Hisar and Jajpur or even Mundra now. We feel quite comfortable that we'll be able to maintain our market share in the future as well.
Yeah. We'll keep on evaluating the situation and basis the-
There is potential to grow in other plants, but we would prefer that most of the growth after FY 2029 comes toward Maharashtra. We are open to all kind of options.
Lastly, what's the status on the blast furnace?
That is not part of JSL, so we don't really discuss that on this call.
Okay. Thank you so much.
Thank you.
Thank you. The next question is from the line of Rajesh Majumdar from 360 ONE. Please go ahead.
Yeah, good evening, sir, and thanks for the opportunity. My question is two parts. Firstly, for FY 2026, what is the breakup between 200 series, 300 series and 400 series?
Yes.
200.
For?
FY 2026 breakup.
For FY 2026, 200 series is around 37%, 300 series is 46% and 400 series is 18%.
Yeah. My second part is that if you look at the 400 series, which I think a couple of years ago you were talking about as a very fast-growing space and infrastructure series, and we were quite optimistic on that. If you look at it over the years, it has come down from 27% to 18%. Now, while you highlight the infrastructure products, et cetera, in your presentation, is that a matter of concern that this 400 series is falling over the years?
Well, 400 series, definitely we wanted to grow, but at the same time as the business evolves, as the market requirements and demand evolves. That also, you know, accordingly, we also have to change our product mix. Under the current product what we are dealing with, under the current market demand what we have, and as you can see that 92% of our market share is from the domestic. Yeah, that is not allowing us to go very aggressively on the 400 series.
eventually our first priority is.
Our aim is to meet the requirements, but we'll keep on working.
If you see already, like, small example, but already year average was 18, but already Q4 400 series has picked up from 19 to 20. You know, as a company, our focus is EBITDA maximization, and we have to fulfill the requirements of the domestic market and customers. Always development efforts are towards 400 series. Auto is picking up. Infra will pick up also in the next few years.
Just to add, while in terms of percentage, for FY 2025 the 400 series was 17%, and for FY 2026 it is 18%. While you see only one percent, but this increases also.
At a higher volume.
Yeah, on the larger base. That is also the situation.
Would it be safe to assume that we can assume a creeping increase in this percentage over a period of time?
Yes.
Is that the effect? Yeah.
Absolutely.
At the cost of the 200 series.
We're seeing that in our performance also.
That would be positive for our EBITDA per ton, right?
Absolutely. Like I said, if it is not going to add value to our EBITDA per ton, then we would not do it only.
Okay, sir. Thanks for that. My second question was, you've talked about Jindal Defence & Aerospace separately this time in a commercial order. I was going through the website of this company, and it has a lot of potential. What is the size of this company and, do we have any plans down the line?
It's not a different entity. You know, It's not a different entity. It's part of JSL only. It's not a company that we've created. It was just given to create a more of a presence and a branding kind of play. It's part of the whole entire JSL setup.
It's not a separate company.
No.
Okay. Thanks. Thank you.
Thank you. The next question is from the line of Mehul Panjwani from 40 Cents. Please go ahead.
Hello, sir. Thank you so much for the opportunity. Sir, what is the expected timeline and ramp-up curve and the cost advantages which we may have from the Indonesian plant?
Indonesian plant was purely to go for nickel resources and nickel-bearing grades. That was the reason we went to Indonesia with all the restrictions we foresee coming. Now they are, like, the world leaders in nickel production.
Hello?
Can you ask the question again?
Yeah. I was actually trying to understand how will it impact our EBITDA per ton and margins over the next 12 months.
We've already guided, see, with everything encompassing our Indonesia investment, our domestic investments, expansion, all of that, we're giving a guidance of 18-20 till H1 of this year. You know, closer to H1 of this year, again, we will come back with a fresh guidance if we see a big change happening. Indonesia workshop is factored in this EBITDA per ton.
Basically, sir, because I'm new to tracking this company, so what kind of EBITDA per ton benefit we'll see in the next six months?
INR 18,000-20,000 EBITDA per ton for the entire-.
Stainless steel.
Stainless steel business, 18-20.
Yeah.
EBITDA per ton is the guidance for the entire stainless steel business.
Okay. sir,
I would maybe suggest you spend some time with the IR team, to get up to speed with all the other things, you know. Otherwise, understanding will take a little longer time.
Appreciate that, sir. Thank you so much, sir.
Thank you.
Thank you. The next question is from the line of Rakesh Roy from Boring AMC. Please go ahead.
Hi, sir. My first question, sir, can you light on the your Rathi performance for whole year and Q4 in term of its revenue and EBITDA?
The Rathi, for the whole year, was operating, operated at around 80%-85% capacity utilization. In this plant, we, as we had spoken in the past that we intend to produce more of rebar, the stainless steel rebar, which for the last quarter, was around 25% of the total volume. This we are increasing gradually, We are finding even within the various agencies, the policy level decisions as well as coming for making in the coastal area, usage of rebars as mandatory.
Otherwise, so far as the overall performance is concerned, Rathi is also a part of the total business EBITDA per ton, whatever we have given. All that is included into that. Subsidiaries, we have not been discussing separately.
Right. Just to know, sir, is Rathi now EBITDA positive for Q4 or for your whole year?
Yes, EBITDA positive.
Company is a bit of positive, yeah. Okay, right, sir. Next question, just to know, sir, due to the shortage of sulfur or the rise in sulfur prices, any impact on our Indonesia business or in terms of production or anything?
No. In our business of nickel production, sulfur is not directly used.
Okay. Not used directly, sir. Right. Okay. Thank you, sir.
Thank you. The next question is from the line of Kirtan Mehta from Baroda BNP Paribas Mutual Fund. Please go ahead.
Thank you, sir, for the opportunity. I wanted to understand the model that we want to pursue after the Indonesian slab becomes operational. We have been utilizing around 85% scrap, and that gives us the green advantage. At the same point of time, we are also now thinking about bringing the slab into India and use them in our process. What is the intended scrap utilization plus post Indonesia becomes fully operational?
The idea of going to Indonesia was because globally around 70, 35% of stainless steel even today is produced using NPI as an input, nickel in the form of NPI. Of course, 30% approximately is produced scrap as an input. We as a company now have both the possibilities because in India we have the technology and capacity to use the scrap as much as possible. Now we have our this possibility of bringing in slabs from Indonesia through NPI route. We'll be balancing the two and as depending upon our customer requirements, accordingly, we can use the product and produce the product.
We may not necessarily bring the entire 1.2 million ton slab into India. In that case, if we don't bring it to India, what would be the alternate route of monetization and what kind of EBITDA we'll make on that? Because that will be on top of the 18-20, correct?
At this stage, our plan is to bring in. It has just started. Right now, whatever our plan is to bring the quantities to India.
Right. What kind of sort of the utilization levels we are looking for next H1?
Mr. Mehta, I'm sorry to interrupt you, sir. That will be the last question.
It's a follow-up on the same.
Okay, please ask. Please ask. It is okay.
No, no, I was just checking in terms of the what kind of then out of the 1.2 million tons utilization, what kind of the throughput level that we are assuming for FY 2027 for the Indonesia melt facility?
Now the ramp up has started. We believe that gradually the ramp up will take place and up to 70%-80% of the capacity should ramp up.
In this financial year.
In this year.
Sure. Thank you.
Thank you, sir.
Okay. Thank you.
Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference over to Mr. Abhyuday Jindal for closing comments. Thank you and over to you, sir.
Thank you everybody. In closing, I am proud to share that we achieved a stable and resilient performance despite the challenges of a dynamic external environment. Resilient demand across key sectors, coupled with a sharp focus on value-added products and unwavering customer focus drove our achievements this quarter. Despite uncertainties in global trading, we remain committed to our long-standing customer relationship across the globe. Our agile business model continues to differentiate us and help us deliver sustained growth in a volatile geopolitical environment. I hope that we have been able to answer all your questions satisfactorily. Should you need any further clarification or would like to know more about the company, please feel free to contact our investor relations team. Thank you once again for joining.
Thank you.
Thank you. Thank you, everyone.
Thank you, members of the management. On behalf of Ambit Capital, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.