Jindal Saw margin slides 7.50 points as costs outrun revenue growth
Revenue rose +9.00% year on year, but the tax rate moved to 36.45% from a prior-year credit and operating margin fell again sequentially.
Filed 14 Jul 2026, 15:06 IST · Jindal Saw Ltd (JINDALSAW)
Key takeaways
- Consolidated operating margin fell 7.50 percentage points year on year to 8.91% as expenses rose +18.77% against revenue growth of +9.00%.
- Net profit declined -78.15% to Rs 90.79 cr, with the prior-year tax credit reversing to a 36.45% tax rate this quarter.
- The stock fell -3.63% on the results day, a smaller move than its 5.63% median absolute reaction across the past eight result events.
Price around the results
Revenue growth did not prevent a sharp profit contraction
Jindal Saw reported consolidated revenue of Rs 4,452.31 cr, up +9.00% year on year but down -3.91% sequentially. Operating profit fell -40.80% year on year and -17.51% quarter on quarter as expenses rose faster than revenue on the annual comparison and declined less than revenue sequentially. Net profit fell -78.15% year on year to Rs 90.79 cr, while EPS declined -75.53% to Rs 1.63.
Costs and tax both weighed on the quarter
Expenses increased +18.77% year on year against +9.00% revenue growth, reducing operating margin by 7.50 percentage points; sequentially, expenses fell -2.34% while revenue fell -3.91%, cutting margin by another 1.47 percentage points. The tax rate rose 47.45 percentage points year on year to 36.45%, compared with a -11.00% rate in the prior-year quarter, which had benefited from a tax credit. Other income contributed 12.81% of profit before tax, making it a material part of reported pre-tax profit.
Operating margin has declined for two consecutive quarters
Margin fell from 12.39% in Q3FY26 to 10.38% in Q4FY26 and 8.91% in Q1FY27, marking two straight quarterly declines after the Q3 level. Jindal Saw's margin was 6.18 percentage points below the 15.09% median for the 16 Industrials peers that had reported, placing it fourth from the bottom among them.
The initial share-price reaction was negative but not unusual
The stock fell -3.63% on the results day and was down -4.86% by the next session, underperforming the market by -2.97% and -2.27%, respectively. Across the past eight results reactions, the stock rose three times and fell five times, with a median absolute move of 5.63%; the latest initial decline was therefore smaller than its typical move.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,452 cr | ₹4,633 cr | -3.91% | +9.00% |
| Other income | ₹18 cr | ₹20 cr | -9.45% | -36.15% |
| Expenses | ₹4,056 cr | ₹4,153 cr | -2.34% | +18.77% |
| Operating profit | ₹397 cr | ₹481 cr | -17.51% | -40.80% |
| Operating margin (%) | 8.91% | 10.38% | — | — |
| Interest | ₹108 cr | ₹163 cr | -33.36% | -36.64% |
| Depreciation | ₹164 cr | ₹167 cr | -1.82% | +6.76% |
| Profit before tax | ₹143 cr | ₹172 cr | -16.77% | -61.83% |
| Tax | ₹52 cr | ₹48 cr | +8.57% | — |
| Net profit | ₹91 cr | ₹124 cr | -26.59% | -78.15% |
| EPS (₹) | ₹1.63 | ₹2.19 | -25.57% | -75.53% |
Operating margin of 8.91% compares with a Industrials sector median of 15.09% across 16 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.63% | -2.97% |
| Next session | -4.86% | — |
| 5 sessions | -2.36% | -2.27% |
Volume on the results session was 2.22× its 20-day average.
What to watch
- Whether consolidated operating margin stabilises above 8.91% after two consecutive quarterly declines.
- Whether expenses continue to grow faster than revenue, after the year-on-year gap of +18.77% versus +9.00%.
- Whether the tax rate remains near 36.45% and other income remains a material 12.81% of profit before tax.