Jindal Saw margin falls to 5.84% as costs outpace revenue
Consolidated revenue rose 5.63% YoY, but expenses grew 11.32%, driving a 4.82-percentage-point margin decline and a tax benefit-supported profit.
Filed 16 Oct 2026, 16:00 IST · after market close · Jindal Saw Ltd (JINDALSAW)
Key takeaways
- Operating margin fell 3.07 percentage points QoQ to 5.84% as expenses grew 3.83% while revenue grew 0.44%.
- Net profit of Rs 35.28 cr was supported by a -144.66% tax rate, while other income equalled 331.83% of pre-tax profit.
- Jindal Saw's 5.84% operating margin was 5.89 percentage points below the 11.73% median of 14 Industrials peers.
Price around the results
Costs erased operating leverage in Q2FY27
Consolidated revenue rose 0.44% QoQ to Rs 4,471.79 cr, but expenses increased 3.83% to Rs 4,210.81 cr. The faster cost growth reduced operating margin by 3.07 percentage points to 5.84%. Year on year, revenue grew 5.63% while expenses grew 11.32%, producing a 4.82-percentage-point margin decline.
Reported profit depended on tax and other income
Profit before tax fell to Rs 14.42 cr, while the negative tax charge of Rs 20.86 cr lifted net profit to Rs 35.28 cr. The tax rate was -144.66%, down 181.11 percentage points from the previous quarter. Other income of Rs 47.85 cr equalled 331.83% of pre-tax profit, making reported profit quality weaker than the net profit figure alone suggests.
Operating margin declined for a third straight quarter
The operating margin has fallen from 12.39% in Q3FY26 to 10.38%, 8.91% and now 5.84% over the past three quarters. The current margin was 5.89 percentage points below the 11.73% median for 14 reported Industrials peers, placing Jindal Saw fourth from the bottom. Interest expense also rose 15.70% QoQ, although it was down 17.96% YoY.
Market reaction is pending after the late filing
The consolidated results were filed after market close, so there is no immediate reaction to report. Across eight prior result reactions, the stock fell six times and rose twice; the median absolute move was 5.29%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,472 cr | ₹4,452 cr | +0.44% | +5.63% |
| Other income | ₹48 cr | ₹18 cr | +161.48% | +20.02% |
| Expenses | ₹4,211 cr | ₹4,056 cr | +3.83% | +11.32% |
| Operating profit | ₹261 cr | ₹397 cr | -34.21% | -42.15% |
| Operating margin (%) | 5.84% | 8.91% | — | — |
| Interest | ₹125 cr | ₹108 cr | +15.70% | -17.96% |
| Depreciation | ₹169 cr | ₹164 cr | +3.21% | +8.65% |
| Profit before tax | ₹14 cr | ₹143 cr | -89.91% | -92.10% |
| Tax | ₹-21 cr | ₹52 cr | — | — |
| Net profit | ₹35 cr | ₹91 cr | -61.14% | -74.54% |
| EPS (₹) | ₹0.74 | ₹1.63 | -54.60% | -68.91% |
Operating margin of 5.84% compares with a Industrials sector median of 11.73% across 14 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from 5.84% after its third straight quarterly decline.
- Whether expenses continue to grow faster than revenue after rising 3.83% versus 0.44% QoQ.
- Whether the -144.66% tax rate and 331.83% other-income share of pre-tax profit persist.