Jindal Saw's revenue rises, but profit drops 75%

Jindal Saw Limited (JINDALSAW) reported Q2 FY27 consolidated total income of ₹4,523 crore, up around 6% year-on-year. Yet profit after tax fell to ₹35.3 crore from ₹138.6 crore a year earlier. That is the part investors should pay attention to. Consolidated EBITDA declined to ₹312.3 crore from ₹481.6 crore. EBITDA margin contracted to approximately 6.9%, compared with 11.3% in Q2 FY26. This is not simply a story of weak demand. The company's results presentation highlights several operating challenges. Exports to the Middle East were halted amid regional instability, affecting capacity utilisation and revenue recognition. India's water-pipe business also faced persistent domestic oversupply and cash-flow pressure from delays in Jal Jeevan Mission-related payments. The order book offers some support. Jindal Saw reported an iron and steel pipe and pellet order book of approximately $1.135 billion, alongside letters of intent worth another $575 million. However, the company expects execution of the existing order book to span 9 to 12 months, and the Middle East disruption remains a factor to watch. My view: the order book is encouraging, but it does not automatically protect earnings. Investors need to see whether orders convert into sales at healthier margins and whether export execution resumes. For the next quarter, I would track EBITDA margin recovery, Middle East shipments and cash-flow improvement. A revenue recovery without margin improvement would not be enough to call this a turnaround.