Jindal Saw profit drops 75.97% as operating margin falls to 9.95%
Revenue declined 13.24% year on year, while higher interest and a 1.72-point tax-rate increase added to the pressure on profit.
Filed 27 Apr 2026, 17:44 IST · after market close · Jindal Saw Ltd (JINDALSAW)
Key takeaways
- Standalone net profit fell 75.97% year on year to Rs 113.98 cr as revenue declined 13.24% and operating margin narrowed 8.41 percentage points.
- Operating margin fell to 9.95% from 12.10% sequentially because expenses declined 5.27% against a 7.53% revenue drop.
- Other income contributed 21.28% of pre-tax profit, while the tax rate rose 1.72 percentage points year on year to 27.07%.
Price around the results
Revenue contraction erased operating leverage
Standalone revenue fell 13.24% year on year to Rs 3,818.44 cr, while expenses declined only 4.30%. That mismatch cut operating profit 52.99% and narrowed operating margin by 8.41 percentage points to 9.95%. Sequentially, revenue fell 7.53% and operating profit declined 23.97%.
Interest and tax reduced profit conversion
Interest expense rose 28.40% year on year and 23.01% sequentially, while depreciation increased 6.22% year on year. Other income made up 21.28% of pre-tax profit, so reported profit also had a meaningful non-operating contribution. The tax rate rose from 25.35% to 27.07% year on year and from 24.90% sequentially.
Margin remains below the industrials peer median
The 9.95% operating margin was 5.71 percentage points below the 15.66% median for 71 Industrials companies that had reported the same quarter. It was among the 13 companies closest to the bottom of that peer set. The margin trend is uneven: it fell from 18.36% in Q4FY25 to 8.83% in Q2FY26, recovered to 12.10% in Q3FY26, and then declined again in Q4FY26.
The initial market reaction was milder than its usual move
The results were filed after market close, and the stock opened down 5.78% before ending the first session 1.99% lower. The first-day fall was smaller than the 5.93% median absolute move after the company's previous eight results, during which the stock rose three times and fell five times.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,818 cr | ₹4,129 cr | -7.53% | -13.24% |
| Other income | ₹33 cr | ₹27 cr | +20.99% | -31.22% |
| Expenses | ₹3,439 cr | ₹3,630 cr | -5.27% | -4.30% |
| Operating profit | ₹380 cr | ₹500 cr | -23.97% | -52.99% |
| Operating margin (%) | 9.95% | 12.10% | — | — |
| Interest | ₹127 cr | ₹103 cr | +23.01% | +28.40% |
| Depreciation | ₹129 cr | ₹122 cr | +6.45% | +6.22% |
| Profit before tax | ₹156 cr | ₹302 cr | -48.24% | -75.40% |
| Tax | ₹42 cr | ₹75 cr | -43.71% | -73.73% |
| Net profit | ₹114 cr | ₹227 cr | -49.74% | -75.97% |
| EPS (₹) | ₹1.79 | ₹3.56 | -49.72% | -75.97% |
Operating margin of 9.95% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.99% | -1.59% |
| Next session | -6.27% | — |
| 5 sessions | -1.20% | -2.18% |
| 15 sessions | -10.45% | — |
| 30 sessions | -8.84% | — |
Volume on the results session was 3.42× its 20-day average.
What to watch
- Whether operating margin recovers from 9.95% after the Q3FY26 rebound to 12.10%.
- Whether interest expense moves down from Rs 127.30 cr after rising 23.01% sequentially.
- Whether other income remains a material contributor after accounting for 21.28% of pre-tax profit.