Profitability Erosion
Jindal Saw Reports 75% Q1 Profit Decline Amid Shrinking Margins, Stock Slumps
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Key Points
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Standalone Q1 FY27 revenue rose 12.75% year-on-year to ₹3,721.44 crore, but quarter-on-quarter revenue declined 2.5% from Q4 FY26.
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Standalone pre-tax profit for Q1 FY27 stood at ₹145.01 crore, down 7.2% QoQ from ₹156.29 crore in the preceding quarter.
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Cost of materials consumed in the standalone result rose to ₹2,388.46 crore, reflecting a roughly 4.5% increase quarter-on-quarter.
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Finance costs in the standalone quarter fell to ₹70.72 crore, a 44.4% reduction from Q4 FY26 (and about 46% lower year on year).
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This quarter marked the second consecutive quarter of profitability decline for Jindal Saw, following a 52% net profit drop in Q4 FY26.
Jindal Saw posted a 75% collapse in consolidated net profit to ₹104 crore in Q1 FY27, even as revenue climbed 9% year-on-year to ₹4,452 crore, according to NDTV Profit. Investors punished the stock hard — shares fell nearly 6% on July 14 after the results hit, per Equity Pandit.
The numbers reveal a company selling more but keeping far less. EBITDA — profit before interest, taxes, and depreciation — dropped 41% to ₹396 crore. The EBITDA margin shrank from 16.4% a year ago to just 8.9%, signaling deep operating pressure despite the revenue growth.
Margins Collapse as Costs Eat Into Revenue Gains
The core problem is clear: revenue grew, but costs grew faster. On a standalone basis, the cost of materials consumed jumped to ₹2,388 crore — a roughly 4.5% rise from the previous quarter, per Business Upturn. That squeezed profits even as top-line sales improved.
Sahi reported that operational headwinds in the iron and steel pipe sector drove the 76% profit decline. Fluctuating raw material prices made it hard for Jindal Saw to protect margins. The consolidated EBITDA margin fell from around 13% a year ago to just 5.34% — a near-collapse in profitability.
Standalone Numbers Show Sequential Slowdown Too
On a standalone basis, Q1 FY27 revenue rose 12.75% year-on-year to ₹3,721 crore. But compared to the previous quarter, revenue actually slipped 2.5% from Q4 FY26. Pre-tax profit fell to ₹145 crore, down 7.2% from ₹156 crore the quarter before, according to Business Upturn.
One bright spot: finance costs dropped sharply. Jindal Saw paid just ₹70.72 crore in interest charges — down 44% from Q4 FY26 and about 46% lower than a year ago. Lower debt costs helped cushion the blow, but not enough to stop the profit slide.
Second Straight Quarter of Falling Profits
This is not a one-off miss. Q1 FY27 marks the second consecutive quarter of declining profits for Jindal Saw. Net profit fell 52% in Q4 FY26 — and now it has dropped another 75% year-on-year in Q1 FY27. The trend points to a sustained squeeze on the business.
ScanX put the consolidated net profit even lower — at ₹90.79 crore, down from ₹415.47 crore a year earlier. Regardless of which figure is used, the direction is the same. Jindal Saw earned far less in June 2026 than it did in June 2025, despite selling more product.
Stock Drops 6% as Market Reacts to Earnings Shock
Markets reacted swiftly. Shares of Jindal Saw fell close to 6% on the NSE on July 14, the day results were announced, according to Equity Pandit. The sell-off reflects investor concern not just about one weak quarter, but about whether the margin erosion is structural.
The key question now is whether raw material costs will ease in coming quarters. If they do, Jindal Saw's revenue growth could translate into profit recovery. But with two straight quarters of declining earnings, the company has work to do to rebuild investor confidence.
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