Jindal Saw Ltd Q2 FY26 – “Pipes se Paisa, Arbitration se Aansu” — ₹1,452 Mn Order Book, -69% QoQ PAT & a CCI Raid Bonus!
1. At a Glance
If pipes could talk, Jindal Saw’s would probably say — “Bhai, hum flow kar rahe hain, par profit leak ho gaya hai!” After posting a Q2 FY26 standalone PAT of ₹152 Cr (down 69% QoQ and 61% YoY), the ₹12,192 Cr market cap pipe powerhouse finds itself caught between shrinking profits and expanding geographies.
At ₹191/share (down nearly 48% YoY), the stock trades at 8.9× P/E, just above its book value (1.07×) — cheaper than your local plumber’s ego. Sales this quarter came in at ₹4,234 Cr, a 24% drop QoQ, showing how global project delays, arbitration drama, and CCI raids can puncture even industrial steel.
With ROCE of 19.4%, ROE of 16.3%, and a debt reduction from ₹3,819 Cr → ₹2,913 Cr in FY25, the company still flexes operational muscles. But between NTPC court battles, Saudi JV expenses, and pellet price fatigue, Jindal Saw’s Q2 looks like an episode of “Pipes of Thrones” — full of power, pressure, and leaks.
2. Introduction
In the universe of steel pipes, where one end connects to oil fields and the other to government tenders, Jindal Saw sits as the desi overachiever who has seen everything — from global expansions to courtroom battles. Founded by the Jindal Group, the company doesn’t just make pipes; it practically veins India’s industrial bloodstream — oil, gas, water, sewage, even oxygen pipelines — sab inka maal hai.
And yet, just when investors thought the steel pipe party was heating up post-FY24’s dream margins (17% OPM, 27.18 EPS), Q2 FY26 arrived with a reality check: OPM crashed to 11%, PAT dropped 69%, and the company’s Delhi office got surprise visitors — not customers, but Competition Commission of India (CCI) inspectors.
Coincidence? Maybe. Comic timing? Definitely.
Jindal Saw’s quarter reads like a Netflix series — one episode with an NTPC arbitration worth ₹1,891 Cr being overturned, another with UAE and Saudi JVs worth USD 118 Mn, and a subplot about debt shrinking faster than its profit.
So, dear reader, tighten your flanges — we’re diving deep into how this rust-free iron empire is dealing with rusted profits.
3. Business Model – WTF Do They Even Do?
Let’s decode Jindal Saw’s business without sounding like a metallurgy textbook. They’re in the pipe mafia — legally, of course. They manufacture:
LSAW pipes (Longitudinal Submerged Arc Welded): For oil, gas & water pipelines.
HSAW pipes (Helical Submerged Arc Welded): For long-distance fluid transport.
DI pipes (Ductile Iron): The kind your city’s water supply depends on.
Seamless pipes: For heavy industry, thermal power plants & energy infrastructure.
Pellets: Because why waste low-grade iron ore when you can turn it into profit pellets?
But that’s not all. They also own iron ore mines in Rajasthan — 1,989 hectares of low-grade iron ore with 180 Mn tons of reserves, a 50-year lease, and a zero-chill attitude toward imports.
The company’s global empire stretches across India, the UAE, and even the US. The recent JVs in Saudi Arabia aim to ride the Middle East’s pipeline boom. Imagine being everywhere pipes are needed — from Ganga pipelines to Gulf oil fields.
In short: Jindal Saw doesn’t sell “pipes”. It sells industrial lifelines. And lately, some legal ones too.
4. Financials Overview
Source table
Metric
Latest Qtr (Q2 FY26)
Same Qtr Last Yr
Previous Qtr (Q1 FY26)
YoY %
QoQ %
Revenue (₹ Cr)
4,234
5,466
5,047
-22.5%
-16.1%
EBITDA (₹ Cr)
451
804
736
-43.9%
-38.7%
PAT (₹ Cr)
152
356
479
-57.3%
-68.3%
EPS (₹)
2.38
5.90
7.92
-59.7%
-70.0%
Commentary: The once-solid margins have deflated faster than air in a burst cycle tire. Operating margin dropped to 11%, and PAT margin is now barely 3.6%. While revenue decline is manageable, the profit collapse screams cost overruns, order delays, and Middle East teething expenses.
You tell us — when profits fall 70% in one quarter, is it a pipe dream or a pipe burst?
5. Valuation Discussion – Fair Value Range Only
Let’s put on our auditor caps.
(i) P/E Approach:
Annualised EPS = ₹2.38 × 4 = ₹9.52 Fair P/E Range = 9×–13× (below industry avg 22×)
→ Fair Value Range: ₹85 – ₹125 per share
(ii) EV/EBITDA Method:
EV/EBITDA industry mean ≈ 6.5× FY25 EBITDA = ₹2,797 Cr; Net Debt = ₹2,913 Cr; EV ≈ ₹16,280 Cr → Fair Equity Value = (6.5×EBITDA – Debt) ÷ Shares ≈ ₹10,200 – ₹12,000 Cr → ₹160–₹190/share
