Jindal Saw Limited reported a broad-based decline in financial performance for Q4 FY26 and the full fiscal year FY26, as the company navigated a confluence of challenges including the suspension of MENA region exports, sluggish domestic water infrastructure execution, and a temporary regulatory setback in its carbon seamless pipe segment. The results were discussed during the company's Q4 FY26 Earnings Conference Call held on April 28, 2026, hosted by ICICI Securities Limited, with key management representatives including Vinay Kumar Gupta, Rajeev Goyal, and Narendra Mantri addressing analysts and investors.

Q4 FY26 Financial Performance

The company's Q4 FY26 results reflected a sequential decline across all key financial metrics on both standalone and consolidated bases. The following table summarises the quarterly performance:

Management noted that the Q4 performance fell short of its earlier expectation of exceeding Q3 results, primarily due to the deferment of export shipments to the MENA region and the impact of a sharp rupee depreciation. The company reported a foreign exchange cost of INR48 crores during the quarter, driven by the rupee's decline from INR88.88 per dollar to INR94.84 per dollar.

Full Year FY26 vs FY25: Steep Year-on-Year Decline

The full-year comparison underscores the extent of the financial deterioration, particularly on the standalone basis where the decline in profitability was most pronounced.

Management attributed the full-year decline primarily to weakness in the ductile iron pipe segment amid ongoing water infrastructure sector challenges, and to the deferment of high-margin export shipments due to the MENA conflict.

Debt Profile and Balance Sheet Strength

Despite the revenue and profitability pressures, the company's debt profile remained relatively contained. As of March 31, 2026, standalone net debt reduced to INR2,453 crores compared to INR3,154 crores in the previous year, with long-term debt standing at only INR529 crores. On a consolidated basis, net institutional debt reduced to INR2,528 crores from INR3,346 crores as of December 31, 2025, with long-term debt at INR692 crores. Management highlighted the company's strong liquidity position and deleveraged balance sheet as a critical buffer during the period of business volatility.

Key Operational Challenges

Management outlined several factors that weighed on Q4 FY26 and full-year FY26 performance:

• MENA Export Suspension: All export shipments have been suspended since March 1, 2026, following the activation of force majeure clauses due to the outbreak of military conflict in the MENA region. The company holds a robust export order book, including a 6 lakh metric ton job contract from Saudi Arabia, with approximately 2 lakh tons of buyer-supplied steel currently held at its facilities. Approximately 30,000 to 40,000 metric tons of material was ready for shipment but was deferred.
• Jal Jeevan Mission Slowdown: Despite positive policy announcements, project execution on the ground remained sluggish, impacting the ductile iron pipe business. Management noted that Q4 sales for the water business were predominantly backed by state-level funding rather than central Jal Jeevan Mission disbursements.
• API Seamless Pipe Suspension: Following an API audit, non-conformances were identified in the carbon seamless pipe segment, resulting in a suspension letter prohibiting the use of the API monogram on seamless pipes. All non-conformances have been addressed and closed. Auditors appointed by API authorities are scheduled to revisit the Nashik facility in May 2026 for verification. The company is leveraging flexible manufacturing capabilities to redirect production towards alternative seamless pipe products in the interim.
• Foreign Exchange Impact: A sharp depreciation of the rupee from INR88.88 per dollar to INR94.84 per dollar resulted in a foreign exchange cost of INR48 crores during Q4 FY26.

Subsidiary and Joint Venture Performance

The Abu Dhabi subsidiary delivered approximately 48,000 tons of pipes in Q4 FY26, compared to 52,000 tons in Q3 FY26, as regional conflict disrupted operations. As of March 31, 2026, the subsidiary holds an order book of approximately $180 million, equivalent to approximately 171,000 metric tons, representing approximately 9 months of operational visibility. In the Jindal Hunting joint venture, where Jindal Saw holds a 51% stake and Hunting holds 49%, the venture generated revenue of approximately INR149 crores with a PAT of INR43.20 crores, compared to revenue of INR177 crores and PAT of INR51.50 crores in FY25.

Strategic Initiatives and Capital Expenditure Outlook

Management outlined several strategic initiatives aimed at positioning the company for recovery and growth:

• A carbon seamless pipe plant is being set up in Abu Dhabi through a wholly owned subsidiary, with land secured and equipment ordering and LC establishment underway. A long-term lease agreement with AD Ports for the land parcel has been signed.
• In Saudi Arabia, a joint venture has been established with Buhur Group, with Jindal Saw holding 51% and Buhur Group holding 49%, to set up LSAW and HSAW facilities. Land for one of the projects has been secured and LCs established for select equipment.
• For domestic capital expenditure, management guided for INR500 crores to INR600 crores in the current fiscal year, following INR800 crores spent in FY26. For the subsequent year, capex is expected in the range of INR400 crores to INR500 crores.

Management acknowledged that Q1 of the current fiscal year is also expected to be impacted by the persisting challenges, particularly the ongoing MENA export suspension and the API seamless pipe regulatory timeline. The company expressed confidence in its ability to ramp up operations quickly once conditions in the MENA region normalise, given its fully booked order book and strong balance sheet.

Jindal SAW Ltd. has informed the stock exchanges of an upcoming virtual investor meeting, scheduled in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting is set to be held on Thursday, May 7, 2026, starting at 3:30 PM IST, and will be conducted on a one-to-one basis with investors.

Meeting Details

The key parameters of the scheduled investor interaction are outlined below:

Scope and Compliance

The company has explicitly stated that all discussions during the meeting will be based solely on publicly available information. Jindal SAW has confirmed that no unpublished price sensitive information (UPSI) is intended to be shared or discussed during the investor interaction. The company has also noted that changes to the meeting schedule may occur due to exigencies on the part of participants or the company itself.

The disclosure was made by Sunil K. Jain, Company Secretary (FCS-3056), on behalf of Jindal SAW Ltd., and was filed with both BSE Limited and the National Stock Exchange of India Limited on May 4, 2026.