#SALES #GROWTH 5 Year CAGR 10.3%
In FY25, the company recorded sales of โน2,491 cr, increasing by 4% YoY, majorly led by volume as the average check remained stable during the period. SSSG was negative 2.9% on a base of negative 1.5% in FY24. On-premise business contributed 58% to the total sales. Digital sales (including application and self ordering kiosks) contributed ~72%. Average sales per store (on a TTM basis) was โน5.9 cr. It added 41 net new stores, during the period. However, these new additions impacted the average unit volume. Revenue in Q1 FY26 was โน658 cr, a growth of 7% YoY. SSSG was 0.5% YoY for the period, driven by stable volume growth and average bill growth. The onpremise business grew by 8% YoY and contributed 59% to revenue. Average sales per store on a TTM basis, remained stable at โน6.2 cr. Overall, the consumption trends remained stable.
In FY25, the company recorded sales of โน2,491 cr, increasing by 4% YoY, majorly led by volume as the average check remained stable during the period. SSSG was negative 2.9% on a base of negative 1.5% in FY24. On-premise business contributed 58% to the total sales. Digital sales (including application and self ordering kiosks) contributed ~72%. Average sales per store (on a TTM basis) was โน5.9 cr. It added 41 net new stores, during the period. However, these new additions impacted the average unit volume. Revenue in Q1 FY26 was โน658 cr, a growth of 7% YoY. SSSG was 0.5% YoY for the period, driven by stable volume growth and average bill growth. The onpremise business grew by 8% YoY and contributed 59% to revenue. Average sales per store on a TTM basis, remained stable at โน6.2 cr. Overall, the consumption trends remained stable.
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#EBITDA #GROWTH 5 Year CAGR 9.3%
In FY25, the EBITDA stood at โน320 cr witnessing a degrowth of 13% YoY. Gross profit improved by 4% to โน1,746 cr. Employee benefit expense saw an increase of 10% and royalty expense increased by 9% YoY. In Q1 FY26, the EBITDA stood at โน85 cr, up by 8.5% YoY. Gross profit stood at โน471 cr, up by ~8% YoY. Employee benefit expense grew by 9% YoY, cost of goods sold increased by 3% YoY and royalty costs witnessed a growth of 5% YoY.
In FY25, the EBITDA stood at โน320 cr witnessing a degrowth of 13% YoY. Gross profit improved by 4% to โน1,746 cr. Employee benefit expense saw an increase of 10% and royalty expense increased by 9% YoY. In Q1 FY26, the EBITDA stood at โน85 cr, up by 8.5% YoY. Gross profit stood at โน471 cr, up by ~8% YoY. Employee benefit expense grew by 9% YoY, cost of goods sold increased by 3% YoY and royalty costs witnessed a growth of 5% YoY.
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#PAT #GROWTH 5 Year CAGR 16.6%
The company recorded โน12 cr of PAT in FY25 reducing by ~82% on a YoY basis. Increase in both depreciation and finance costs led to the fall in PAT YoY. The new store opening did not contribute as much to the overall revenue, thereby impacting the profitability. Tax rate for FY25 was 7%. This included a tax credit of โน1.5 cr in FY25 pertaining to adjustment of tax relating to previous years v/s a charge of โน0.6 cr in FY24. In Q1 FY26, the PAT was ~โน1 cr. It reduced by 62% on a YoY basis. Finance costs and depreciation increased by 19% and 11% YoY, respectively. Cash PAT in Q1 FY25 was โน47 crore as compared to โน46 crore in Q1 FY25.
The company recorded โน12 cr of PAT in FY25 reducing by ~82% on a YoY basis. Increase in both depreciation and finance costs led to the fall in PAT YoY. The new store opening did not contribute as much to the overall revenue, thereby impacting the profitability. Tax rate for FY25 was 7%. This included a tax credit of โน1.5 cr in FY25 pertaining to adjustment of tax relating to previous years v/s a charge of โน0.6 cr in FY24. In Q1 FY26, the PAT was ~โน1 cr. It reduced by 62% on a YoY basis. Finance costs and depreciation increased by 19% and 11% YoY, respectively. Cash PAT in Q1 FY25 was โน47 crore as compared to โน46 crore in Q1 FY25.
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#EBITDA #MARGIN
EBITDA margin stood at 12.8% in FY25, contracting by 260 bps YoY. Gross margin contracted by 20 bps YoY to 70.1%. Other expenses expanded by ~169 bps, leading to lower EBITDA margins. Restaurant operating margin was 19.3% for the year v/s 21.8% in FY24, impacted by occupancy & other operating expenses. In Q1 FY26, EBITDA margin stood at 13.1%, showing an increase of 30 bps YoY. Increase in margins was led by rise in gross margin expansion of 120 bps YoY at 72.1%. Restaurant operating margins stood at 19.9% v/s 19.1% in Q1 FY25.
EBITDA margin stood at 12.8% in FY25, contracting by 260 bps YoY. Gross margin contracted by 20 bps YoY to 70.1%. Other expenses expanded by ~169 bps, leading to lower EBITDA margins. Restaurant operating margin was 19.3% for the year v/s 21.8% in FY24, impacted by occupancy & other operating expenses. In Q1 FY26, EBITDA margin stood at 13.1%, showing an increase of 30 bps YoY. Increase in margins was led by rise in gross margin expansion of 120 bps YoY at 72.1%. Restaurant operating margins stood at 19.9% v/s 19.1% in Q1 FY25.
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#PAT #MARGIN
In FY25, PAT margin contracted by 241 bps YoY and stood at 0.5%. The margins fell on account of lower revenue growth v/s large increase in depreciation and finance costs. In Q1 FY26, PAT margin stood at 0.2% v/s 0.5% in Q1 FY25. The increase in finance and depreciation cost contributed to the decrease in PAT margin.
In FY25, PAT margin contracted by 241 bps YoY and stood at 0.5%. The margins fell on account of lower revenue growth v/s large increase in depreciation and finance costs. In Q1 FY26, PAT margin stood at 0.2% v/s 0.5% in Q1 FY25. The increase in finance and depreciation cost contributed to the decrease in PAT margin.
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#MANAGEMENT
Mr. Hrushit Shah has been appointed as the Chief Financial Officer (CFO) after resignation of Mr. Saurabh Bhudolia, effective from 9th May 2024. In a career spanning more than 18 years, prior to joining Westlife, Hrushit worked as vice-president (finance) of Pidilite industries and worked in other FMCG companies like Marico and Godrej consumer products across various roles. Amit Jatia ceased to be the CEO w.e.f., 18th March 2025. He was succeeded by Akshay Jatia. Akshay Jatia has been associated with Westlife Foodworld for more than 10 years.
Mr. Hrushit Shah has been appointed as the Chief Financial Officer (CFO) after resignation of Mr. Saurabh Bhudolia, effective from 9th May 2024. In a career spanning more than 18 years, prior to joining Westlife, Hrushit worked as vice-president (finance) of Pidilite industries and worked in other FMCG companies like Marico and Godrej consumer products across various roles. Amit Jatia ceased to be the CEO w.e.f., 18th March 2025. He was succeeded by Akshay Jatia. Akshay Jatia has been associated with Westlife Foodworld for more than 10 years.
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#COMPANY #POTENTIAL
โข The total Foodservice Market in India was estimated at ~โน6,12,600 cr in FY25, of which the organised segment was ~โน2,81,900 cr. (Source: CRISIL) โข The organized QSR segment had a market size of ~โน79,400 cr and represents a small portion of India's food services industry. (Source: CRISIL) โข The increasing trend of eating out in urban cities in India, across all the economic classes, without the need for any special occasion, has boosted the demand for QSRs. People increasingly prefer eating outside as a part of their leisure outings or shopping experience. โข An increasing number of fast-food franchises in untapped areas and expansion of tier II and tier III cities have also led to the rise in the number of quick service restaurants. โข Consumer habits continue to evolve; as there is a growing preference for eating out or eating delivered food at home or office. โข Keeping in mind the young demographic of India, changing population along with higher spending capacity of young consumers will increase the consumption of fast food. โข Rising nuclearization of families and dual income families in India has led to increase in eating out or ordering in of food in place of home cooked meals. โข Expansion in penetration of technology enables consumers to order food online as well as browse through menus increasing their horizon, thereby potentially increasing demand for such products. โข The organized eating out market, particularly the Western Fast-Food category is projected to grow in double-digits in the next 5 years.
โข The total Foodservice Market in India was estimated at ~โน6,12,600 cr in FY25, of which the organised segment was ~โน2,81,900 cr. (Source: CRISIL) โข The organized QSR segment had a market size of ~โน79,400 cr and represents a small portion of India's food services industry. (Source: CRISIL) โข The increasing trend of eating out in urban cities in India, across all the economic classes, without the need for any special occasion, has boosted the demand for QSRs. People increasingly prefer eating outside as a part of their leisure outings or shopping experience. โข An increasing number of fast-food franchises in untapped areas and expansion of tier II and tier III cities have also led to the rise in the number of quick service restaurants. โข Consumer habits continue to evolve; as there is a growing preference for eating out or eating delivered food at home or office. โข Keeping in mind the young demographic of India, changing population along with higher spending capacity of young consumers will increase the consumption of fast food. โข Rising nuclearization of families and dual income families in India has led to increase in eating out or ordering in of food in place of home cooked meals. โข Expansion in penetration of technology enables consumers to order food online as well as browse through menus increasing their horizon, thereby potentially increasing demand for such products. โข The organized eating out market, particularly the Western Fast-Food category is projected to grow in double-digits in the next 5 years.
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#FUTURE #OUTLOOK
โข In FY25, the company opened 41 new stores. Westlife plans to have around 580-630 restaurants by 2027 (currently 438 restaurants). The company expects store additions to be skewed towards South India which is seen as an underpenetrated market and they have moved towards market leadership there, via meals and chicken proposition, hence they expect to bring in volume as well as returns. โข The company intends to increase the proportion of Drive-Thrus to ~30-35% of stores in the next 5-6 years. It shall also be tapping into opportunities in infrastructure development areas including highways, metros and airports. โข For Vision 2027, the company has set targets to reach the sales figure of ~โน4,000-โน4,500 cr. It expects to have high single digit SSSG, ~18%-20% operating EBITDA margin, over 40% ROCE, more than 25% ROE, and 60%+ free cash flow conversion. โข It introduced the value meal proposition, offering a choice of burger, fries and a drink for a price of โน149. This move was made in line with softening consumption demand and increase in competition hoping to drive in more traffic. It wants to move towards leadership in meals as meals is a much larger segment and a much larger occasion for the consumer than snacking and the management believes it is going to be the next big revenue driver for Westlife. It also launched McSavers+, allowing customers to pair snacks with a beverage for just โน69. โข To target the young Indian consumers, it launched a limited-time Korean range of burgers, sides and drinks, at an entry level price point of โน69. โข The off-premise segment (includes delivery, on-the-go pickups and drive-thrus) currently contributes 41%. Going forward, it plans to accelerate growth rate in delivery segment.
โข In FY25, the company opened 41 new stores. Westlife plans to have around 580-630 restaurants by 2027 (currently 438 restaurants). The company expects store additions to be skewed towards South India which is seen as an underpenetrated market and they have moved towards market leadership there, via meals and chicken proposition, hence they expect to bring in volume as well as returns. โข The company intends to increase the proportion of Drive-Thrus to ~30-35% of stores in the next 5-6 years. It shall also be tapping into opportunities in infrastructure development areas including highways, metros and airports. โข For Vision 2027, the company has set targets to reach the sales figure of ~โน4,000-โน4,500 cr. It expects to have high single digit SSSG, ~18%-20% operating EBITDA margin, over 40% ROCE, more than 25% ROE, and 60%+ free cash flow conversion. โข It introduced the value meal proposition, offering a choice of burger, fries and a drink for a price of โน149. This move was made in line with softening consumption demand and increase in competition hoping to drive in more traffic. It wants to move towards leadership in meals as meals is a much larger segment and a much larger occasion for the consumer than snacking and the management believes it is going to be the next big revenue driver for Westlife. It also launched McSavers+, allowing customers to pair snacks with a beverage for just โน69. โข To target the young Indian consumers, it launched a limited-time Korean range of burgers, sides and drinks, at an entry level price point of โน69. โข The off-premise segment (includes delivery, on-the-go pickups and drive-thrus) currently contributes 41%. Going forward, it plans to accelerate growth rate in delivery segment.
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Westlife Development Limited 400-448
Expected level 550
Support 345
Expected level 550
Support 345
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Jindal Stainless Ltd Company details report
Jindal Stainless Ltd (JSL) is Indiaโs leading stainless
steel manufacturer with 3mt capacity (plans to
expand to 4.2mt by FY27). The company operates
a wide network of 16 stainless steel
manufacturing and processing facilities in India
and internationally. Its product portfolio includes
stainless steel slabs, blooms, coils, plates, sheets,
precision strips, wire rods, rebar, blade steel, and
coin blanks. JSL is aggressively expanding its
capacity and enhancing backward integration to
drive sustainable and profitable growth.
Additionally, the company remains focused on
enhancing its value-added portfolio, further
supporting margins.
๏ถ Considering the robust demand, capacity
expansion plans, and a focus on value-added
products, we expect JSL to strengthen its market
dominance and achieve a 14% CAGR of revenue
growth driven by volume growth of 10% CAGR
coupled with NSR improvement of 4% CAGR over
FY25-27. Strong topline growth, coupled with
improved cost structure, is expected to drive an
EBITDA/APAT CAGR of 17%/21% over FY25-27.
With strong cash flow generation and steady
capex outflow, we expect JSL to generate strong
cash flow during FY26-27E, which can further be
utilized for deleveraging.
๏ถ We initiate coverage on the stock with a BUY
rating and a TP of INR770 (premised on 10x FY27E
EV/EBITDA).
Jindal Stainless Ltd (JSL) is Indiaโs leading stainless
steel manufacturer with 3mt capacity (plans to
expand to 4.2mt by FY27). The company operates
a wide network of 16 stainless steel
manufacturing and processing facilities in India
and internationally. Its product portfolio includes
stainless steel slabs, blooms, coils, plates, sheets,
precision strips, wire rods, rebar, blade steel, and
coin blanks. JSL is aggressively expanding its
capacity and enhancing backward integration to
drive sustainable and profitable growth.
Additionally, the company remains focused on
enhancing its value-added portfolio, further
supporting margins.
๏ถ Considering the robust demand, capacity
expansion plans, and a focus on value-added
products, we expect JSL to strengthen its market
dominance and achieve a 14% CAGR of revenue
growth driven by volume growth of 10% CAGR
coupled with NSR improvement of 4% CAGR over
FY25-27. Strong topline growth, coupled with
improved cost structure, is expected to drive an
EBITDA/APAT CAGR of 17%/21% over FY25-27.
With strong cash flow generation and steady
capex outflow, we expect JSL to generate strong
cash flow during FY26-27E, which can further be
utilized for deleveraging.
๏ถ We initiate coverage on the stock with a BUY
rating and a TP of INR770 (premised on 10x FY27E
EV/EBITDA).
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Valuation
The industry is poised for strong growth, backed by rising stainless steel adaptability across sectors and government initiatives for mega infrastructure projects. The thriving manufacturing industry, sustainable construction, automotive sector, consumer durables, and growing new-age sector are expected to steadily propel Indiaโs stainless steel consumption to 7.3mt by FY31 and 12.5-20mt by 2047. JSL has evolved from being solely a flat SS producer to a diversified long SS player, expanding into rebar, wire rods, and decorative SS, unlocking significant infrastructure opportunities. Additionally, its focus on value-added CR SS strengthens its position in both domestic and export markets. Considering these tailwinds, JSLโs revenue CAGR is projected to be ~14% over FY25-27, outperforming other carbon steel players in the industry. With steady margins of INR20,500-22,000/t, EBITDA is expected to reach ~17% CAGR over FY25-27. A healthy CFO and steady capex outflow will ensure JSLโs B/S remains resilient.
The industry is poised for strong growth, backed by rising stainless steel adaptability across sectors and government initiatives for mega infrastructure projects. The thriving manufacturing industry, sustainable construction, automotive sector, consumer durables, and growing new-age sector are expected to steadily propel Indiaโs stainless steel consumption to 7.3mt by FY31 and 12.5-20mt by 2047. JSL has evolved from being solely a flat SS producer to a diversified long SS player, expanding into rebar, wire rods, and decorative SS, unlocking significant infrastructure opportunities. Additionally, its focus on value-added CR SS strengthens its position in both domestic and export markets. Considering these tailwinds, JSLโs revenue CAGR is projected to be ~14% over FY25-27, outperforming other carbon steel players in the industry. With steady margins of INR20,500-22,000/t, EBITDA is expected to reach ~17% CAGR over FY25-27. A healthy CFO and steady capex outflow will ensure JSLโs B/S remains resilient.
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Scenarios analysis
Bull Case ๏ฎ Robust economic growth, coupled with supportive government initiatives like the PLI scheme and Make in India, is set to boost demand across sectors like infrastructure, railways, automotive, new-age industries, and the defense sector, fueling stainless steel demand in India. Additionally, the tariff barriers on Chinese imports will safeguard domestic players, creating a level playing field. ๏ฎ Revenue is projected to post ~21% CAGR, reaching ~INR573b over FY25-27. This growth will be driven by strong volume expansion from the ramp-up of new capacities and healthy NSR, supported by a higher VAP share. ๏ฎ Strategic investments in renewable energy and backward integration for cost control are expected to drive margin accretion. With EBITDA improving to INR23,500/t (vs. FY25 reported EBITDA), it is expected to result in a 26% CAGR, reaching INR74b over FY25-27.
Bull Case ๏ฎ Robust economic growth, coupled with supportive government initiatives like the PLI scheme and Make in India, is set to boost demand across sectors like infrastructure, railways, automotive, new-age industries, and the defense sector, fueling stainless steel demand in India. Additionally, the tariff barriers on Chinese imports will safeguard domestic players, creating a level playing field. ๏ฎ Revenue is projected to post ~21% CAGR, reaching ~INR573b over FY25-27. This growth will be driven by strong volume expansion from the ramp-up of new capacities and healthy NSR, supported by a higher VAP share. ๏ฎ Strategic investments in renewable energy and backward integration for cost control are expected to drive margin accretion. With EBITDA improving to INR23,500/t (vs. FY25 reported EBITDA), it is expected to result in a 26% CAGR, reaching INR74b over FY25-27.
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Bear Case ๏ฎ A slowdown in domestic demand could hinder stainless steel volume growth. Furthermore, cheap stainless steel imports from China may erode the pricing power of domestic manufacturers. This could lead to sluggish volume CAGR of 8%, with flat NSR over FY25-FY27. As a result, revenue is expected to post an 8% CAGR, where volume gains may offset the any negative impact led by weaker NSR. ๏ฎ Geopolitical tensions and logistical challenges could disrupt raw material availability, causing price volatility and supply chain disruptions. This may impact business operations, resulting in operating margin moderation. Hereby company could see modest EBITDA of INR20,000/t (vs. INR19,600/t in FY25) could result in ~9% CAGR for EBITDA, reaching INR55b over FY25-27.
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Expansion underway to cater to robust demand
๏ฎ JSL is executing a strategic INR57b investment plan to expand its capacity, enhance
downstream operations, and diversify its product portfolio. Over 40% of this capex
has already been incurred as of FY25, increasing the total capacity by 40% to
4.2mtpa by FY27.
๏ฎ As part of its overseas presence, JSL has entered into a JV in Indonesia to establish
a 1.2mtpa Steel Melt Shop (SMS). Domestically, JSL is strengthening its
downstream operations, particularly in Jajpur.
๏ฎ Further, JSL has acquired Jindal United Steel (JUSL) with a hot (3.2mtpa) and cold
(0.2mtpa) rolling capacity. It is also diversifying into the infra space by acquiring
Rathi Super Steel (RSSL) and Rabirun Vinimay (RVPL).
๏ฎ JSL aims to increase the share of its CR products to 75% (vs. 45% currently) with the acquisition of Chromeni Steels, which has a capacity of 0.6mtpa and the potential to expand to 4mtpa.
๏ฎ JSL is executing a strategic INR57b investment plan to expand its capacity, enhance
downstream operations, and diversify its product portfolio. Over 40% of this capex
has already been incurred as of FY25, increasing the total capacity by 40% to
4.2mtpa by FY27.
๏ฎ As part of its overseas presence, JSL has entered into a JV in Indonesia to establish
a 1.2mtpa Steel Melt Shop (SMS). Domestically, JSL is strengthening its
downstream operations, particularly in Jajpur.
๏ฎ Further, JSL has acquired Jindal United Steel (JUSL) with a hot (3.2mtpa) and cold
(0.2mtpa) rolling capacity. It is also diversifying into the infra space by acquiring
Rathi Super Steel (RSSL) and Rabirun Vinimay (RVPL).
๏ฎ JSL aims to increase the share of its CR products to 75% (vs. 45% currently) with the acquisition of Chromeni Steels, which has a capacity of 0.6mtpa and the potential to expand to 4mtpa.
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Strategic expansion to strengthen its global leadership
๏ฎ Jindal Stainless (JSL) is Indiaโs leading stainless steel manufacturer with a 3mt capacity
(plans to expand to 4.2mt by FY27). JSL operates a wide network of 16 stainless steel
manufacturing and processing facilities in India and internationally. Its product portfolio
includes stainless steel slabs, blooms, coils, plates, sheets, precision strips, wire rods,
rebar, blade steel, and coin blanks. JSL is aggressively expanding its capacity and
enhancing backward integration to drive sustainable and profitable growth. Additionally,
the company focused on enhancing its value-added portfolio, further supporting margins.
๏ฎ Following the merger, JSLโs revenue recorded a 12% CAGR over FY22-25, primarily driven
by a 12% volume CAGR, partially offset by NSR moderation. During the same period,
EBITDA posted a compounded decline of 3% due to weak NSR and a surge in input prices.
In line with the EBITDA, APAT also registered a 7% compounded decline over the same
period. Considering the robust demand, capacity expansion plans, and a focus on value-
added products, we expect JSL to strengthen its market dominance and achieve a 14%
CAGR of revenue growth driven by volume growth of 10% CAGR, coupled with NSR
improvement of 4% CAGR over FY25-27. Strong revenue growth, coupled with improved
cost structure, is expected to drive an EBITDA/APAT CAGR of 17/21% over FY25-27.
๏ฎ JSL has deleveraged its balance sheet from the peak of INR103b during FY16 to INR40b as
of FY25. We expect its OCF at INR62b, which would comfortably fund the ongoing capex
of INR40b during the next two years. JSLโs RoE slipped to 15% in FY25 (vs. 18% in FY23),
and it is likely to remain steady at 16% in FY27.
๏ฎ At CMP, the stock trades at 8.4x EV/EBITDA on our FY27 estimate. We initiate coverage
on the stock with a BUY rating and a TP of INR770 (premised on 10x FY27E EV/EBITDA).
We believe that JSLโs focus on strategic acquisitions and greater raw material security
will further strengthen its growth prospects
๏ฎ Jindal Stainless (JSL) is Indiaโs leading stainless steel manufacturer with a 3mt capacity
(plans to expand to 4.2mt by FY27). JSL operates a wide network of 16 stainless steel
manufacturing and processing facilities in India and internationally. Its product portfolio
includes stainless steel slabs, blooms, coils, plates, sheets, precision strips, wire rods,
rebar, blade steel, and coin blanks. JSL is aggressively expanding its capacity and
enhancing backward integration to drive sustainable and profitable growth. Additionally,
the company focused on enhancing its value-added portfolio, further supporting margins.
๏ฎ Following the merger, JSLโs revenue recorded a 12% CAGR over FY22-25, primarily driven
by a 12% volume CAGR, partially offset by NSR moderation. During the same period,
EBITDA posted a compounded decline of 3% due to weak NSR and a surge in input prices.
In line with the EBITDA, APAT also registered a 7% compounded decline over the same
period. Considering the robust demand, capacity expansion plans, and a focus on value-
added products, we expect JSL to strengthen its market dominance and achieve a 14%
CAGR of revenue growth driven by volume growth of 10% CAGR, coupled with NSR
improvement of 4% CAGR over FY25-27. Strong revenue growth, coupled with improved
cost structure, is expected to drive an EBITDA/APAT CAGR of 17/21% over FY25-27.
๏ฎ JSL has deleveraged its balance sheet from the peak of INR103b during FY16 to INR40b as
of FY25. We expect its OCF at INR62b, which would comfortably fund the ongoing capex
of INR40b during the next two years. JSLโs RoE slipped to 15% in FY25 (vs. 18% in FY23),
and it is likely to remain steady at 16% in FY27.
๏ฎ At CMP, the stock trades at 8.4x EV/EBITDA on our FY27 estimate. We initiate coverage
on the stock with a BUY rating and a TP of INR770 (premised on 10x FY27E EV/EBITDA).
We believe that JSLโs focus on strategic acquisitions and greater raw material security
will further strengthen its growth prospects
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RM security + backward integration = Mitigating input cost volatility
๏ฎ Nickel, which accounts for ~50% of input costs, is a critical raw material for SS
production. India lacks domestic reserves and relies on imports, primarily
ferronickel and stainless steel scrap. However, global scrap availability is tightening
due to export restrictions and disruptions like trade tension. JSL is strategically
mitigating the nickel price volatility through backward integration.
๏ฎ To secure long-term supply, JSL has entered into a JV with New Yaking Pte Ltd for a Nickel Pig Iron (NPI) smelter in Indonesia (49% stake). The facility has been operational since Augโ24, ensures an annual supply of 0.2mt NPI with 14% nickel content and reduces JSLโs exposure to nickel price fluctuations
๏ฎ Nickel, which accounts for ~50% of input costs, is a critical raw material for SS
production. India lacks domestic reserves and relies on imports, primarily
ferronickel and stainless steel scrap. However, global scrap availability is tightening
due to export restrictions and disruptions like trade tension. JSL is strategically
mitigating the nickel price volatility through backward integration.
๏ฎ To secure long-term supply, JSL has entered into a JV with New Yaking Pte Ltd for a Nickel Pig Iron (NPI) smelter in Indonesia (49% stake). The facility has been operational since Augโ24, ensures an annual supply of 0.2mt NPI with 14% nickel content and reduces JSLโs exposure to nickel price fluctuations
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Operational synergies via integration, expansion, and value addition
๏ฎ The company has streamlined its corporate structure by merging with its promoter
holding company (Jindal Stainless - Hisar) and acquiring key assets. This has led to
increased capacity, enhanced backward integration, and downstream product
diversification and value addition. As a result, JSL has become the largest stainless
steel player in India and one of the top global manufacturers.
๏ฎ JSL has formed two JVs in Indonesia to establish an NPI facility and an SMS,
ensuring a stable nickel supply and reducing price volatility. Recent acquisitions
(CSPL, JSUL, RSSL, RVPL) complement these efforts, allowing JSL to handle
increased melt capacity and expand its VAP share.
๏ฎ The company has streamlined its corporate structure by merging with its promoter
holding company (Jindal Stainless - Hisar) and acquiring key assets. This has led to
increased capacity, enhanced backward integration, and downstream product
diversification and value addition. As a result, JSL has become the largest stainless
steel player in India and one of the top global manufacturers.
๏ฎ JSL has formed two JVs in Indonesia to establish an NPI facility and an SMS,
ensuring a stable nickel supply and reducing price volatility. Recent acquisitions
(CSPL, JSUL, RSSL, RVPL) complement these efforts, allowing JSL to handle
increased melt capacity and expand its VAP share.
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