IPO

Jindal Supreme (India), founded by Late Madan Lal Jindal in 1974, is engaged in the manufacturing and supply of a different range of steel pipes and tubes catering to the requirements of multiple infrastructure and industrial applications.

The product portfolio of the company includes mild steel (MS) black pipes, tubes, galvanized pipes, metal beam crash barriers, and galvanized iron (GI) tubular poles of various dimensions. Products find application in various industry segments like water supply and plumbing, infrastructure &construction, road &highways, bridges, oil &gas, chemicals, agriculture, rural electrification and others.

Over the years, the company expanded its product offerings to tap into emerging opportunities in infrastructure development projects. For instance, in FY2025, the company commenced the manufacturing of metal beam crash barriers with W-beam and Thrie-beam crash barriers, which are primarily utilized for road safety and highway infrastructure projects. Then, in FY 2026, it further diversified into the production of GI tubular poles, which are commonly used for street lighting, electrification projects, and other public utility infrastructure.

The manufacturing facility of the company is located at Hisar in Haryana, with an annual installed capacity of 90000 tpa for MS black pipes/tube; 45000 tpa for MS galvanized pipe/tubes; 42000 tpa (including 18000 tpa capacity addition recently completed) for metal beam crash barrier and 12000 tpa for GI tubular poles. The manufacturing facility is equipped with various machinery, mills, welding plants, and galvanizing plants, supported by in-house maintenance workshop and testing equipment. The company added new galvanising unit with installed capacity of 18,000 tpa at its existing plant at a capex of Rs 1.735 crore funded by internal accruals. This enhanced the existing capacity from 45,000 tpa to 63,000 tpa.

In FY26, the contribution of income from sale of products to the revenue from operations was 91.56% [42.94% fromMS black pipes/tubes; 26.54% fromMS galvanized pipes; 17.41% from metal beam crash barriers; and 4.66% from GI tubular poles] and the balance 8.36% from other operating income including sales of scrap and strip and zinc dross.

The business model of the company is primarily focused on direct sales, primarily to institutional buyers for specific projects or applications like infrastructure contractors, and industrial customers. A significant share of its revenue is facilitated through direct sale to parties. Direct sales contributed 79.73% of revenue from operation in Q1FY27, 68.18% in FY26 and 73.47% in FY25. The balance revenue came from dealers, who numbered 53 as end of Jun 2026.

Revenue is mostly concentrated to northern and a few western Indian states. In FY26, about 82.40% of revenue from operations came from six states: Haryana (28.55%), Rajasthan (13.98%), Punjab (13.67%), Uttar Pradesh (12.36%), Delhi (7.95%) and Gujarat (5.89%).

The issue, Objects of the issue

The offer comprises fresh issue of 10741149 equity shares of Rs 10 each and an offer for sale of 2686851 equity shares by VVJ Enterprises, a promoter group company.

Of the net proceeds from fresh issue, the company intends to use Rs 71 crore towards prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company; and balance towards general corporate purposes.

Outstanding borrowings as of end of June30, 2026, stood at Rs 92.4607 crore.

Strengths

Established player with wide product portfolio with ability to diversify into adjunct products to capitalize on opportunities.

About 68% of revenue in FY26 came from direct sales to institutional buyers like infra contractors or industrial customers for specific projects or applications.

The Top 10 customer accounted for about 20% FY26 revenue from operations signaling diversified customer base and are not concentrated to few customers to generate revenue from operations.

Weaknesses

Manufacturing facility is concentrated at a single location in Hisar, Haryana.

Production costs are vulnerable to fluctuations in the prices of raw materials, especially MScoils, MS HRcoil, and galvanizing materials.

A significant portion of revenue from operations is derived from the sale of black pipes and galvanized pipes and thus any fall in demand for these products will adversely affect the business.

In the past had negative cash flows from operating activities.

About 28.55% of revenue from operations in FY26 came from the state of Haryana.

Does not own the land on which its manufacturing plant is located and has been obtained by it on a leave and license basis.

The use of `Jindal' and the association of itspromoters with the larger Jindal family may create an impression that the company is associated with or forms part of other companies using the `Jindal' name, including listed entities. Any adverse developments relating to such entities may adversely affect the perception of the company and its business.

Valuation

Consolidated re-stated revenue in FY26 stood higher by 15% to Rs 675.39 crore. With OPM expanding by 180 bps to 6.2%, the growth of OP was 61% to Rs 41.63 crore. Other income was down by 97% to Rs 0.55 crore. Thus, the PBIDT was down 5% to Rs 42.18 crore. Finally, net profit after MI was lower by 7% to Rs 22.53 crore.

On the expanded equity, the EPS for FY26 was Rs 4.4. On the upper price band, the PE works out to 21.1 times of its FY26 EPS. Annualized EPS for Q1FY27 was Rs 6.5 and PE works out to 14.3 times.P/BV stood at 2.3 times and EV/Sales stood 0.8 times. ROE stands at 7.7%.

Repayment of Rs 71 crore from net proceeds will bring the borrowings down by about 76.8%, resulting in lower interest outgo. Annualized EPS for Q1FY27 works out to Rs 7.7 if 76.8% of its interest cost is removed, keeping all other items, including tax rate, same. The reworked PE stood at 12.1 times.

In comparison, Hi-Tech Pipes quotes at a PE of 20.4 times, ROE of 5.7% and FY26 OPM of 4.1%. The PE of Sambhv steel was 26.5 times, ROE of 13.7% and OPM of 11.3%. The PE of Vibhor Steel was 24.3 times, ROE of 4.9% and OPM of 3.7%.

JTL Industries quotes at a PE of 34 times, ROE of 6.6% and OPM of 7.2%. PE of Hariom Pipes was 15 times, ROE of 11.7% and OPM of 12.6%. APL Apollo Tubes quotes at a PE of 50 times, ROE of 22.7% and OPM of 7.8%

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