Jindal Saw Shares Slide 6% on Sharp Q1 Profit Drop

Shares of Jindal Saw Ltd fell to an intraday low of Rs 253.15 on the NSE on 14 July, down nearly 6% at one point.

The trigger was the company’s June quarter numbers, where profit fell hard even as sales grew.

Net profit for Q1FY27 came in at Rs 104 crore, down 75% from Rs 424 crore in the same quarter last year. Revenue actually rose 9% to Rs 4,452 crore from Rs 4,085 crore.

So the business sold more. It just made a lot less money doing it, and that mismatch is what spooked the market.

The reason sits in the margins. EBITDA fell 41% to Rs 396 crore, and the EBITDA margin nearly halved, down to 8.9% from 16.4% a year ago.

Net profit margin slipped to 2.03% from 10.13%. Much of the pressure traces back to how the company’s inventory levels moved compared with last year.

Inventory had provided a large buffer in the year ago quarter, and that buffer shrank sharply this time round, which pushed up total expenses and ate into what would otherwise have been a decent quarter on the top line.

It’s a familiar story by now. The March quarter wasn’t much better, with net profit down 52% to Rs 139.4 crore and revenue down 8% to Rs 4,633.5 crore.

EBITDA had dropped nearly 35% that quarter too, with margin down to 10.4% from 14.6%. Two quarters running of shrinking margins, even as revenue has largely held up.

Jindal Saw makes submerged arc welded pipes, ductile iron pipes and seamless tubes, supplying the oil and gas, water transport and infrastructure sectors across India and overseas markets.

The stock closed the day at Rs 258.85, down 3.63% for the session. That leaves it well off its 52 week high of Rs 278.95, set just earlier this month, and it’s a sharp reminder of how quickly sentiment can turn when margins disappoint.

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