Jindal Stainless (JDSL IN) – Q4FY26 Result Update – Good Q4 despite disruptions; cost pressures linger – ACCUMULATE
Published on 06 May 2026
Commissioning of the 1.2mtpa Indonesia melt shop and ongoing downstream expansions position JDSL well for the next phase of volume-led growth, with capacity additions expected to drive sales towards the 3.5mt target by FY29. While near-term volumes may remain muted given downstream limitations & LPG shortage, domestic demand continues to remain strong across key sectors with applications of stainless steel. Management continues to focus on profitability through product mix and cost control. Sustained volume growth supported by capacity ramp-up and stable pricing environment, would be critical for maintaining margins. Key monitorable includes a) production disruptions, b) pricing pressure amid higher import on QCO relaxations, c) ramp-up of Indonesia and downstream capacities, and d) demand momentum in exports. We marginally cut FY27/28E EBITDA by 1.6%/1.4% and expect JDSL to deliver 13% EBITDA CAGR over FY26-28E. At CMP, the stock is trading at 10.4x/8.5x EV of FY27/FY28E EBITDA. Maintain ‘Accumulate’ rating with TP of Rs821 (earlier Rs826), valuing at same 9x EV of Mar’28E EBITDA.
