Revenue rose 18.19%, but operating margin fell to 10.99%
Costs grew faster than sales, while higher other income helped profit before tax rise 11.38% year on year.
Filed 22 Oct 2026, 15:24 IST · Jindal Stainless Ltd (JSL)
Key takeaways
- Consolidated revenue grew 18.19% year on year, but expenses grew faster at 20.38%, pulling operating margin down 1.62 percentage points to 10.99%.
- Net profit rose 11.12% year on year even as operating profit grew only 2.96%, with other income contributing 20.82% of profit before tax.
- Jindal Stainless' operating margin was 7.63 percentage points below the 18.62% median for nine reported Commodities peers and ranked second from the bottom.
Price around the results
Sales growth did not translate into operating profit
Consolidated revenue increased 18.19% year on year and 14.14% sequentially, but operating profit grew only 2.96% and 3.74%, respectively. The gap indicates weaker operating conversion despite higher sales. Profit before tax grew faster at 11.38% year on year and 16.22% sequentially, helped by non-operating income.
Faster cost growth drove the margin slide
Expenses grew 20.38% year on year against 18.19% revenue growth, narrowing operating margin by 1.62 percentage points; sequentially, expenses rose 15.58% against 14.14% revenue growth and margin fell 1.10 percentage points. Interest expense also increased 17.01% year on year and 12.72% sequentially. Other income rose 133.58% year on year and accounted for 20.82% of profit before tax, so reported profit growth had a meaningful non-operating contribution. The year-on-year tax rate increased 0.18 percentage points, while the sequential rate fell 0.37 percentage points.
Operating margin has declined for three straight quarters
Operating margin fell from 13.44% in Q3FY26 to 13.18% in Q4FY26, 12.09% in Q1FY27 and 10.99% in Q2FY27. This is the third consecutive sequential decline and places Jindal Stainless 7.63 percentage points below the 18.62% median of nine Commodities peers that have reported. The company ranked second from the bottom on this comparison.
Management pointed to automotive demand and new products
Management said the FY27 automotive outlook remains positive, supported by overall industry growth. The company said it has 16 stainless steel manufacturing and processing facilities in India and abroad as of March 2026, and reported developing India's first high-aluminium stainless steel grade for catalytic converters. Management also reported a 12% reduction in GHG emission intensity in Q2FY27 through investments in renewables and green hydrogen.
Current market reaction is not yet available
The results are too fresh for a market reaction. Across the last eight result reactions, the stock rose five times and fell three times, with a median absolute move of 1.47%, so its historical response has been more often positive than negative but generally modest.
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 | ₹12,874 cr | ₹11,279 cr | +14.14% | +18.19% |
| Other income | ₹250 cr | ₹118 cr | +111.28% | +133.58% |
| Expenses | ₹11,459 cr | ₹9,915 cr | +15.58% | +20.38% |
| Operating profit | ₹1,415 cr | ₹1,364 cr | +3.74% | +2.96% |
| Operating margin (%) | 10.99% | 12.09% | — | — |
| Interest | ₹165 cr | ₹146 cr | +12.72% | +17.01% |
| Depreciation | ₹299 cr | ₹302 cr | -1.13% | +14.15% |
| Profit before tax | ₹1,201 cr | ₹1,034 cr | +16.22% | +11.38% |
| Tax | ₹303 cr | ₹265 cr | +14.54% | +12.18% |
| Net profit | ₹898 cr | ₹769 cr | +16.79% | +11.12% |
| EPS (₹) | ₹10.85 | ₹9.34 | +16.17% | +10.71% |
Operating margin of 10.99% compares with a Commodities sector median of 18.62% across 9 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.43% | -2.89% |
Volume on the results session was 0.55× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The Stainless Academy conducted 205 fabricator training programmes in Q2 FY27, reaching 12,165 independent fabricators.
Guidance & outlook
- Automotive demand is expected to remain positive in FY27, supported by overall industry growth.
Expansion
- The company has 16 stainless steel manufacturing and processing facilities in India and abroad as of March 2026.
New products
- The company developed a high-aluminium stainless steel grade for catalytic converters.
- The Saathi Seal offering was extended to water tanks.
New initiatives
- Jindal Stainless developed India's first high-aluminium stainless steel grade for catalytic converters.
- The company reduced GHG emission intensity by 12% in Q2 FY27 through investments in renewables and green hydrogen.
What to watch
- Whether operating margin stabilises after falling from 13.44% in Q3FY26 to 10.99% in Q2FY27.
- Whether expenses grow more slowly than revenue after rising 20.38% versus 18.19% year on year.
- Whether other income remains near 20.82% of profit before tax.