Jindal Stainless Ltd Gains Over 3% After Ahead-of-Schedule Commissioning of Indonesia SMS Facility

Jindal Stainless Ltd shares rose more than 3 per cent on Tuesday, closing at Rs 717.45, after the company announced the commissioning of its stainless steel melt shop (SMS) facility in Indonesia. The positive market response reflects investor confidence in the company’s ongoing expansion strategy and capacity growth.

The newly commissioned facility, developed through a joint venture, has a capacity of 1.2 million tonnes per annum (MTPA) and has been completed ahead of schedule. This milestone comes less than two years after the company outlined plans to expand its melting capacity by 40 per cent. With the addition of the Indonesian unit, Jindal Stainless Ltd’s total melting capacity has now increased to 4.2 MTPA, including 3 MTPA located in India.

In parallel with the expansion of its melting operations, the company is also strengthening its downstream capabilities. It is preparing to commission a 1.1 MTPA Hot Rolled Annealed Pickled (HRAP) line and an additional 0.17 MTPA cold rolling capacity at its facility in Jajpur, Odisha. These projects are expected to be operational by Q4 22026-27 and Q2 2026-27, respectively and form part of a previously announced investment of Rs 1,900 crore.

Looking ahead, the company has also earmarked a fresh investment of Rs 900 crore to enhance cold rolling capacities at its plants in Hisar and Kharagpur. These facilities are scheduled for commissioning by Q2 2027-28.

The expansion of downstream operations will enable Jindal Stainless Ltd to manufacture thinner cold rolled products designed for high-growth sectors. As a result of these developments, the company aims to increase its cold rolling capacity from 2.05 MTPA in 2025-26 to 2.67 MTPA by 2027-28, marking an addition of 0.62 MTPA. Upon completion of all ongoing projects, cold rolling capacity is expected to account for 64 per cent of the company’s total melting capacity.

With this concurrent enhancement in melting and downstream capacities, the company is targeting to achieve a sales volume of ~3.5 MTPA by 2028-29, delivering double-digit CAGR over the next three years.

Commenting on this development, CEO, Jindal Stainless, Mr Tarun Khulbe, said,

"Expansion in melt capacity and corresponding strengthening of downstream facilities speaks volumes about our commitment to fuel the Indian growth story. Our capacity and production enhancements are in line with the robust domestic potential of our country. With the activation of new capacities, we will unlock the next phase of growth for Jindal Stainless, strengthening our vision to build world-class capabilities in stainless steel."

About Jindal Stainless Ltd

Jindal Stainless Ltd (JSL) is India’s largest homegrown stainless steel maker. It serves key industries such as Railways, automotive, infrastructure, consumer goods, and oil and gas. JSL operates 16 manufacturing and processing facilities in India, including in Hisar and Jajpur, as well as internationally, with a presence in 12 countries, as of March 2025.

Jindal Stainless Ltd Share Price Performance

Jindal Stainless Ltd share price closed at Rs 717.45, marking a rise of Rs 21.75, or 3.13 per cent, from the previous close of Rs 695.70. The stock opened at Rs 703.90 and went on to touch an Intraday high of Rs 721.70, while the day’s low stood at Rs 703.90.

On a year-to-date basis, shares have declined by 15.74 per cent, indicating some pressure in the stock during the current year. However, over a one-year period, the share has delivered a strong return of 21.65 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.