Jindal Supreme (India)
Strength Behind InfrastructurePowering India with Steel
IPO Summary (PreQT)
Jindal Supreme (India) Limited is a Hisar-based manufacturer of MS black pipes/tubes, galvanized pipes/tubes, metal beam crash barriers and GI tubular poles, with operating roots dating to 1974. FY26 revenue from operations was INR 675.4 Cr, EBITDA INR 41.6 Cr and PAT INR 22.5 Cr; EBITDA margin expanded to 6.2% from 3.3% in FY24, while PAT margin moderated to 3.3% from 4.0% in FY25 as the unusually high FY25 other-income contribution normalized. The business is diversifying away from black and galvanized pipes through crash barriers and GI poles, but remains raw-material and working-capital intensive. The IPO comprises approximately INR 99.9 Cr of fresh issue and INR 25.0 Cr OFS at the cap price; INR 71.0 Cr is proposed for debt repayment. At INR 88.0-INR 93.0 per share, the IPO implies FY26 P/E of approximately 15.7x-16.6x and P/B of 3.7x-3.9x.
IPO Review Rating
Above Avg
MainboardBuilding Stronger Infrastructure Through Advanced Steel Manufacturing Excellence
Jindal Supreme is currently an above-average IPO primarily because of valuation, ROE, promoter commitment and improving operating profitability — not because it is a high-growth company. Revenue CAGR over FY24–FY26 is only 2.3%, but EBITDA Margin has almost doubled from 3.3% to 6.2%, indicating meaningful operating improvement.
The financial weaknesses should not be ignored. PAT Margin remains thin at 3.3%, leverage at 1.24x is high compared with listed peers, and FY26 operating cash flow was negative despite INR 22.5 Cr PAT. On the other hand, 26.3% ROE and exceptionally low customer concentration are substantial positives. The INR 71.0 Cr debt repayment should also materially improve the post-IPO balance sheet. The governance picture is relatively favourable. Abhishek Jindal has 18+ years of sector experience, promoter/promoter-group ownership remains around 73.7% after the offer and there is no promoter pledge. The deductions arise from historical promoter-group procurement, promoter funding and the fact that the independent Board structure has been assembled fairly recently ahead of the IPO.
Valuation is the principal attraction. At the INR 93 upper band, the conventional FY26 P/E is 16.6x and the more conservative post-issue P/E is approximately 21.1x, versus RHP peers at 22.3x–65.6x. Importantly, Jindal Supreme simultaneously reports 26.3% RoNW, higher than every disclosed peer. Therefore, unlike many IPOs where a peer-average discount is optically manufactured by one expensive comparable, the valuation here remains reasonable even against the peer median
PARAMETER
WEIGHT
SCORE
KEY FACTORS
Financial Performance
40.0%
3.0/5
Jindal Supreme combines strong ROE, rapidly improving EBITDA margins, declining leverage and excellent customer diversification. However, the low 2.3% FY24–FY26 Revenue CAGR, thin 3.3% PAT Margin and negative FY26 operating cash flow prevent a stronger financial score
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Detailed Analysis
Revenue increased from INR 645.4 Cr in FY24 to INR 675.4 Cr in FY26, implying only 2.3% CAGR, despite a strong 15.2% FY26 rebound
FY26 EBITDA was INR 41.6 Cr, with EBITDA Margin improving sharply to 6.2% from 3.3% in FY24
FY26 EBITDA was INR 41.6 Cr, with EBITDA Margin improving sharply to 6.2% from 3.3% in FY24
FY26 Debt/Equity improved materially to 1.2x, from 2.1x in FY24, but remains relatively elevated
FY26 ROE was a strong 26.3%
Industry
15.0%
3.0/5
This is a stable, policy-supported infrastructure industry rather than a high-growth sector. Jindal Supreme can outperform underlying 5–6% market growth through share gains and newer products such as crash barriers and tubular poles, but commodity pricing and intense competition limit structural margins
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Detailed Analysis
Indian steel-pipe demand is forecast to grow around 5.2–5.5% CAGR, although recent historical production and consumption growth has been substantially higher
Steel pipes are a mature industry, but infrastructure spending and migration toward specialized/value-added products provide structural growth
Strong government support is partly offset by BIS/QCO, environmental, commodity-price and tender-related risks
Management
15.0%
4.0/5
Experienced promoter-led management with Abhishek Jindal bringing 18+ years of sector experience and high post-IPO promoter ownership. Governance is supported by an independent board and zero promoter pledge, though independent appointments are relatively recent. Historical related-party procurement and promoter-linked funding warrant monitoring despite improvement in FY26
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Detailed Analysis
Abhishek Jindal has been associated with the business since 2007 and has 18+ years of ERW pipe/tube experience
Six-member Board with three Independent Directors, although all three independent appointments are relatively recent
No promoter/promoter-group shares are pledged; litigation exists but quantified exposure is relatively modest
Material historical purchases from a promoter-group company and promoter funding require monitoring, although promoter-group purchases ceased in FY26
Valuation
20.0%
5.0/5
At INR 93, Jindal Supreme trades at a conservative post-issue FY26 P/E of ~21.1x, below its disclosed peer median of ~23.1x and well below the average. This is supported by a strong 26.3% RoNW and improving operating margins. EV/EBITDA is less discounted, making the overall valuation reasonable to attractive rather than deeply cheap
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Detailed Analysis
Post-issue P/E of 21.1x versus RHP peer average of approximately 37.0x at 43% discount; also below the 23.1x peer median at a 9% discount
Indicative FY26 EV/EBITDA is around 11.2x at a 9% premium, broadly within the peer range rather than obviously cheap
Historical P/B approximately 3.9x
Merchant Banker Track Record
10.0%
4.0/5
Sarthi Capital Advisors has delivered a generally positive recent IPO track record, with several issues listing above their offer prices. However, performance has been volatile and the track record is partly boosted by strong SME listings. Overall, the merchant banker is credible but not comparable to a top-tier institutional ECM franchise
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Detailed Analysis
Nine recent RHP-disclosed issues produced an estimated ~31.1% average opening return, helped substantially by SME issues
Approximately 7 of 9 recent RHP-disclosed issues opened above their respective offer prices
TOTAL
100%
3.6/5
Weighted Composite Score
Issue Price
₹88.0 to ₹93.0
As of 11 Sep 2026
GMP
₹21.0
As of 11 Sep 2026
Estimated Gain / Loss
+22.6%
Lot Size
161.0 Shares
Grey Market Premium (GMPs) are shared for knowledge purpose only. PrEqt doesn’t promote or execute the trades.
| Issue size | |
|---|---|
| Overall | ₹125.0 Cr |
| Fresh Issue | ₹100.0 Cr |
| Offer for Sale | ₹25.0 Cr |
Minimum Investment
₹14,973.0 / 25,921 shares
Merchant Banker
Sarthi Capital Advisors Pvt.Ltd, Bigshare Services Pvt. Ltd.
Sarthi Capital Advisors Pvt.Ltd
Bigshare Services Pvt. Ltd.
IPO Document
Offer Start Date
Offer End Date
Valuation
Revenue
PAT (FY'26)
Issue Size
Face Value
₹ 10.0Offer Price
₹ 93.0Lot Size
161.0 sharesSale Type
Fresh capital cum OFSPAT (FY'26)
₹ 22.5 CrPAT Margin (FY'26)
3.3 %P/E Multiple
21.1xEBITDA (FY'26)
₹ 41.6 CrCAGR Growth 2Y
2.3 %ROE (FY'26)
26.3 %ROCE (FY'26)
16.8 %Price to Book Value
3.9xDebt/Equity
1.2xCompany Website
www.jindalsupreme.comExplore new deals
Overview
Fund Allocation
Total: ₹0 CrSource:Company DRHP
Timeline
IPO Open Date
To Be Announced
IPO Close Date
To Be Announced
Tentative Allotment
To Be Announced
Initiation of Refunds
To Be Announced
Credit of Shares to Demat
To Be Announced
Tentative Listing Date
To Be Announced
Business
Products
Business Model
Geographical Presence
Sales Channel
Key Risk Factor
Financial Highlights
Income Statement
Revenue growth with EBITDA and PAT margins
| Financial Metric | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|
| Revenue (₹ Cr) | 645.4 | 586.4 | 675.4 |
| Growth (%) | - | -9.1% | 15.2% |
| EBITDA (₹ Cr) | 21.1 | 25.9 | 41.6 |
| EBITDA Margin (%) | 3.2% | 4.3% | 6.2% |
| PAT (₹ Cr) | 12.9 | 24.3 | 22.5 |
| PAT Margin (%) | 2.0% | 4.0% | 3.3% |
OBSERVATIONS & INSIGHTS
FY25 revenue declined 9.1% as black-pipe and galvanized-pipe sales fell, partly offset by the first crash-barrier contribution; FY26 rebounded 15.2% as black-pipe sales recovered, crash barriers nearly doubled and GI tubular poles added a new revenue stream
EBITDA increased from INR 21.1 Cr in FY24 to INR 41.6 Cr in FY26 as revenue mix diversified and operating costs, particularly material cost relative to sales, improved. EBITDA Margin expanded from 3.3% to 4.4% and 6.2%, showing stronger core manufacturing profitability despite the commodity nature of the business
PAT rose sharply to INR 24.3 Cr in FY25 but declined 7.2% to INR 22.5 Cr in FY26 despite higher EBITDA, mainly because FY25 included INR 18.3 Cr of other income versus only INR 0.6 Cr in FY26. PAT Margin improved from 2.0% in FY24 to 4.0% in FY25, then moderated to 3.3% in FY26 as the FY25 non-operating income benefit normalized and tax expense increased
Balance Sheet
| Financial Metric | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|
| Net Worth | ₹ 50.3 Cr | ₹ 74.6 Cr | ₹ 96.8 Cr |
| Total Assets | ₹ 181.2 Cr | ₹ 200.3 Cr | ₹ 248.4 Cr |
| Total Borrowing | ₹ 104.9 Cr | ₹ 95.8 Cr | ₹ 119.9 Cr |
| Reserves & Surplus | ₹ 47.9 Cr | ₹ 72.2 Cr | ₹ 56.3 Cr |
OBSERVATIONS & INSIGHTS
Inventory: increased from INR 54.5 Cr in FY24 to INR 100.3 Cr in FY26, becoming the largest current-asset line and the principal driver of higher working-capital intensity
Trade receivables: were stable in FY25 but increased to INR 33.2 Cr in FY26, consistent with debtor days rising to about 18
CWIP: increased to INR 7.2 Cr in FY26 from INR 0.5 Cr in FY25, showing renewed investment in capacity / projects after the FY25 asset-sale and commissioning cycle
Reserves & surplus / other equity: rose through FY25 profits but reduced in FY26 mainly because reserves were utilized for the large bonus issue; total equity still increased materially because share capital rose
Total equity: increased from INR 50.3 Cr in FY24 to INR 96.8 Cr in FY26, strengthening the capital base despite the bonus-related reclassification within equity
Borrowings: combined current and non-current borrowings declined in FY25 but increased to INR 119.9 Cr in FY26 as short-term borrowings rose; the IPO proposes INR 71.0 Cr of repayment / prepayment
Total assets: increased 24.0% in FY26, led primarily by the build-up in inventory, receivables and CWIP rather than a major increase in operating PPE
Cash Flow
| Financial Metric | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|
CFO (₹ Cr) Cash generated from core business operations. | +20.2 Cr | +5.7 Cr | -5.7 Cr |
CFI (₹ Cr) Cash used for investments and long-term assets. | -43.0 Cr | +11.9 Cr | -9.9 Cr |
CFF (₹ Cr) Cash flow related to funding and borrowings. | +22.9 Cr | -17.7 Cr | +15.5 Cr |
Working Capital
| Efficiency Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
Debtor Days Average number of days taken to collect customer payments. | - | - | - |
Creditor Days Average time taken to pay suppliers and vendors. | - | - | - |
Inventory Days Average number of days inventory remains unsold. | - | - | - |
CCC (Cash Conversion Cycle) (Debtor Days + Inventory Days - Creditor Days) | - | - | - |
Financial Ratios
Measures the company’s leverage relative to shareholder equity.
OBSERVATIONS & INSIGHTS
ROE rose strongly in FY25 on higher PAT, then moderated to 26.3% in FY26 as PAT declined slightly while the equity base expanded
ROCE improved materially from FY24 but fell from 22.4% to 16.8% in FY26 as capital employed increased faster than EBIT
ROA improved from 7.1% in FY24 to 12.1% in FY25, then moderated to 9.1% as FY26 total assets expanded 24.0% while PAT declined
Current Ratio improved from approximately 1.0x in FY24 to 1.3x in FY25-FY26, but a large part of current assets is tied up in inventory
Net Debt / Equity reduced from approximately 2.1x to 1.2x as equity strengthened, although FY26 borrowings increased in absolute terms; the IPO's debt-repayment object should reduce leverage further
Interest Coverage improved from approximately 3.0x in FY24 to 4.5x in FY26 as EBIT increased faster than finance cost, despite a modest decline from the FY25 peak
Industry Overview
Industry Drivers
Infrastructure, Roads and Urban Construction
Large transport, urban and industrial infrastructure programs increase demand for structural pipes, galvanized products and road-safety systems. Jindal Supreme's entry into W-beam / Thrie-beam crash barriers directly links its growth to highways, expressways, bridges and industrial-corridor activity, while core ERW products remain widely used in construction and fabrication.
The key drivers are:
• Indian finished-steel consumption increased from 94.89 MT in FY21 to 164.19 MT in FY26, reflecting strong domestic infrastructure and industrial demand
• Domestic steel-pipe demand is projected by the industry report to grow at approximately 5.5% CAGR from FY25 to FY30
• Crash-barrier capacity is 24,000 MTPA and FY26 utilization improved to 65.2% from 35.8% in FY25
• Metro networks, highways, Dedicated Freight Corridors and industrial corridors broaden demand for structural and safety-related steel products
Water Supply, Irrigation and Urban Utilities
ERW and galvanized pipes are extensively used in municipal water networks, rural water supply, plumbing, irrigation and public utilities. Government investment in water access and urban infrastructure therefore creates a recurring project pipeline for pipe manufacturers with standardized quality and distribution reach.
The key drivers are:
• MS black and galvanized pipes together contributed approximately 69.6% of Jindal Supreme's FY26 revenue
• Jal Jeevan Mission and AMRUT-type urban water infrastructure expand the addressable market for water-distribution and utility pipes
• Galvanized pipes provide corrosion resistance for water, utility and outdoor applications, supporting demand for value-added coated products
• Rising urbanization and housing construction create parallel demand in plumbing, fabrication and building services
Energy, Gas Distribution and Industrial Expansion
Steel pipes are critical for oil & gas, city gas distribution, chemicals, industrial utility networks and process applications. Expansion of manufacturing, industrial corridors and energy infrastructure supports demand for both standard ERW products and higher-specification pipes, while domestic manufacturing policies encourage local sourcing.
The key drivers are:
• The industry report identifies oil & gas, power, chemicals and general engineering as major steel-pipe end markets
• City Gas Distribution and energy-pipeline expansion provide long-duration demand for pipe infrastructure
• Indian finished-steel production rose to 161.73 MT in FY26 from 96.20 MT in FY21, improving domestic raw-material availability for downstream processors
• Industrial and manufacturing investment supports demand for piping, structural frameworks, electrical / utility poles and fabricated steel products
Risks in the Industry
The steel-pipe industry remains cyclical and input-cost sensitive. HRC, mild-steel coils and zinc can move sharply with domestic steel prices, global trade flows and energy costs, while intense competition can limit the speed of price pass-through. Project delays and environmental / energy compliance can also affect utilization and margins.
The key risks are:
• Raw-material volatility: HRC, mild-steel coils and galvanizing materials are the dominant cost inputs and can create margin pressure when selling-price revisions lag
• Demand cyclicality: construction, infrastructure and industrial project timing directly affects pipe / tube volumes and capacity utilization
• Competition / imports: organized players compete with larger domestic manufacturers and fragmented regional suppliers on price, quality, delivery and dealer incentives
• Environmental and energy intensity: galvanizing, welding and steel processing require power, chemicals and emissions / waste compliance, increasing operating and compliance costs
Government Policy Support
Policy support is largely demand-led through public infrastructure, water, roads, urban development and energy networks, combined with manufacturing localization. These programs can expand the addressable market for pipes, crash barriers and utility poles, although actual benefit depends on project awards, implementation schedules and vendor qualification.
The Key Policies are:
• Jal Jeevan Mission / urban water programs support water-distribution, plumbing and rural / municipal pipe demand
• Highway, expressway and corridor investment supports structural steel products and metal beam crash barriers
• City Gas Distribution and energy-pipeline expansion under the gas-infrastructure framework support steel-pipe demand
• Make in India, PLI-linked manufacturing investment and domestic quality standards support organized local steel-product manufacturers and import substitution
Fundraise/Future Plans
Shareholding
Pre-issue shareholding
Promoter Holding 0.0%
Post-Issue Shareholding
Promoter Holding 0.0%
Category
Pre-Issue%Post-Issue%
Promoters
Abhishek Jindal
81.0%63.9%
Sonam Jindal
1.1%0.8%
Total Promoter Holding
82.1%64.7%
Additional Shareholders
0.0%0.0%
Total Additional Holding
0.0%0.0%
Total Shareholding
82.1%64.7%
- Overview
- Business
- Financial Highlights
- Industry Overview
- Fundraise/Future Plans
- Documentation
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