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DIVERSIFIED PRODUCT PORTFOLIO BACKED BY INTEGRATED MANUFACTURING SCALE

Jindal SAW Limited’s (JSL) competitive strength lies in its diversified pipe portfolio—spanning SAW, spiral, seamless, welded, and DI pipes—supporting a wide range of end-use sectors and reducing cyclicality risk. A multi-location, technologically equipped manufacturing base enables efficient execution of large, highspecification pipeline orders. Its vertically integrated value chain, covering coating, bending, fabrication, and logistics, enhances execution reliability and cost efficiency. These capabilities position the company as a fullservice pipe solutions provider, creating strong entry barriers and reinforcing its leadership across domestic and export markets. This integrated and scalable platform strengthens the company’s ability to capitalize on expanding domestic and global infrastructure demand.

STRONG ORDER BOOK POSITION DRIVING EXECUTION VISIBILITY AND GROWTH MOMENTUM

JSL enters FY26 with a record order book (for standalone) of USD 1,452 million, including USD 1,412 million in iron and steel pipes and USD 40 million in pellets, providing strong revenue visibility. The pipe backlog has reached an all-time high of ~1.93 million MT, supported by a 0.622 million MT export water-sector order to be executed over 15–18 months, ensuring steady plant loading. The order book is well diversified, with exports of ~0.8 million MT accounting for ~43% of pipe volumes and ~31% of order book value, reducing reliance on domestic cycles. In addition, the UAE subsidiary adds USD 240 million (~215,000 MT) of secured orders, strengthening consolidated execution visibility for the next 9–12 months. This broad, multi-geography demand base enhances utilisation, improves operating leverage, and supports sustained revenue and margin momentum. Overall, the depth and durability of the order pipeline reinforce the company’s competitive positioning across both domestic and export markets.

STRUCTURAL DEMAND TAILWINDS SUPPORTING MULTI-YEAR GROWTH

India’s urban population is expected to reach 675 million by 2035, driving sustained demand for water supply, sewage systems, and urban infrastructure reliant on DI and welded pipes. Major government programs— including Jal Jeevan Mission, AMRUT 2.0, and Namami Gange 2.0—with commitments such as 3,722 MLD of new STP capacity and extensive wastewater network expansion, underpin strong multi-year demand for largediameter pipelines. Simultaneously, long-distance oil & gas projects like the 1,700 km Mumbai–Nagpur– Jharsuguda line, the 2,800 km Kandla–Gorakhpur LPG corridor, and additional 844–1,480 km crude and gas pipelines reinforce sustained opportunities for SAW and spiral pipes. International markets, particularly in Saudi Arabia and the UAE, add sizable prospects with project values ranging from USD 293 million to USD 11 billion, strengthening the overall demand environment for Jindal SAW’s diversified pipe portfolio.

OUTLOOK & VALUATION

We expect Jindal SAW Ltd. to deliver topline growth of ~15% by FY28E over FY25, driven by healthy order book position, and strong domestic and international demand backed by Infrastructure growth. Furthermore, we estimate the company to sustain healthy profitability, with EBITDA and PAT margins at ~15.3% and ~6.5%, respectively, in FY28E. Our EPS estimates stand at Rs.17.8, Rs. 20.9 and Rs. 24.5 for FY26E, FY27E and FY28E, respectively. Assigning a P/E of 8X and EV/EBITDA of 3.5X we have arrived at a target price of 198 which gives an upside of 21% from CMP of Rs.163, within an investment horizon of 24-30 months, we initiate coverage on Jindal SAW Ltd. with a BUY rating.

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