West Asia war uncertainty weighs on Jindal Stainless’ volume outlook

The West Asia-led uncertainty, volatile fuel prices, and persistent shipping disruptions continue to cloud Jindal Stainless Ltd’s outlook, prompting India’s largest stainless steel manufacturer to cut its FY27 sales volume growth guidance.

The company has lowered its sales volume growth guidance to 4-6% for fiscal year 2026-27 (FY27) from 7-9% earlier, as disruptions in the first quarter affected its performance, chief executive Tarun Khulbe told reporters on Thursday.

The company however, raised its earnings before interest, taxes, depreciation and amortization (Ebitda) guidance to ₹22,000 per tonne from ₹18,000-20,000 per tonne indicated at the beginning of the fiscal year.

“The first quarter was badly affected by the war because of fuel availability and the prices of fuel. In the second quarter, we were able to overcome that. From an availability point of view, the situation is better, but price fluctuations remain,” Khulbe said.

However, fluctuations in oil and fuel prices continue to create uncertainty around production costs. Logistics remain another concern, particularly for exports and imported raw materials, as container availability and ocean freight rates fluctuate, Kulbe warned.

The company has managed these challenges through long-term relationships and contracting arrangements with shipping lines, given its presence on both the import and export sides, Khulbe said.

Jindal Stainless expects to pass on higher costs gradually, although any fresh spike in energy, raw material or shipping expenses could affect profitability. “Any spike of any sort, whether on shipping, raw material or energy, impacts us,” Khulbe said.

Gas availability also remains a concern amid uncertainty surrounding the Strait of Hormuz and the broader West Asia. While Jindal Stainless has not faced restrictions on its allocated gas supplies so far, Khulbe noted that some suppliers in western India had curtailed allocations to long-term customers.

Beyond the war, the company is also navigating changes in trade policy and competition from cheaper Chinese imports following the government's revision of quality control requirements.

The company has also diversified its raw material sourcing, including through investments in Indonesia, anticipating tighter global scrap supplies as the European Union considers restrictions on scrap exports. Any such curbs could push scrap prices higher, but Khulbe said Jindal Stainless's ability to use scrap, nickel pig iron and material from its Indonesian operations gives it greater flexibility in managing supply risks.

Mint reported on 30 September that the European Union's (EU) rule could restrict metal scrap shipments to India, forcing manufacturers to find alternative supplies and potentially raising raw material and logistics costs.

The company's performance in the coming quarters will depend partly on how energy prices, shipping conditions and the geopolitical situation evolve, even as it works to sustain production and protect margins.

Jindal Stainless’s consolidated revenue from operations rose 18.2% year-on-year to ₹12,873.86 crore in the September quarter, compared with ₹10,892.78 crore a year ago, according to exchange filings.

The Delhi-headquartered company consolidated net profit increased 11.1% to ₹897.75 crore from ₹807.92 crore in the year-ago quarter.

Dipali Banka is a Mumbai-based journalist who treats corporate reporting less like a beat and more like a puzzle to be solved. This invariably means she has to read through annual reports and speak with leaders and analysts. She tracks policies, deals, and the pulse of industries spanning metals, mining, paints, and cement, alongside aviation. She started out as an intern at The Statesman and then completed her postgraduate diploma in journalism from Asian College of Journalism, Chennai, in 2025. Relentlessly curious at heart, Dipali is driven by the simple urge to understand how things work and who they impact. Armed with an enduring fascination for steel and aeroplanes, she moves through the churn of daily news with focus, turning complexity into clarity without losing the story. She is particularly committed to shaping numbers into objective narratives, having little appetite for vagueness that gets in her way.<br><br>Outside the newsroom, Dipali is an unapologetically loud presence who values long conversations and longer walks to unwind. She devours books of all kinds and can often be found indulging in the lyrical sway of contemporary ghazals. She ardently believes that her relationship with her bylines is more sacred than it would ever be with anyone across the human race.

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