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Jindal Stainless: Steady performance; Guided lower EBITDA/ton owing to high operating cost amidst West Asia conflict

ICICIdirect Research 08 May 2026 DISCLAIMER

 Total operating income stood at ₹11,337 crore, up by 11% YoY, supported by higher average blended realisation (up 3% QoQ to ~₹1.68 lakh/ton) in Q4FY26
 While stainless steel sales volume reported a flattish YoY growth to 6.4 lakh tonnes, primarily due to production rationalization amid natural gas supply disruptions caused by the West Asia conflict in mid of March’26.
 Nonetheless, a higher value-added product mix during the quarter led to a sequential increasing in EBITDA/ton by ~₹1,000/ton to ~₹22,670/ton in Q4FY26.
 Going ahead, JSL has guided for lower EBITDA/ton of ₹18,000-20,000/ton for H1FY27 (vs ₹21,670/ton in FY26), owing to elevated cost pressures such as LPG and propane amid the ongoing West Asia conflict. It may revise guidance depending on the evolving cost environment.
 Thus, headwinds from the West Asia conflict leading to higher operating costs and rising imports, are expected to result in subdued near-term performance for the company.
 Consequently, we have downgraded stock from BUY to HOLD, with a target price of ₹880 i.e. 11x EV/EBITDA on FY28E

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