Jindal Supreme IPO

GMP History

Strengths

• ✓The company’s manufacturing facility is located in Hisar, Haryana, which it states provides logistical and cost advantages due to its proximity to the manufacturing plants of its customers. The location also enables the company to supply customised steel products closer to their end-use locations.
• ✓The company has increased its sales volume over the period under review. Total sales volume increased from 98,351 MT in FY24 to 101,100 MT in FY26, while EBITDA, excluding other income, increased from Rs 21.11 crore to Rs 41.63 crore during the same period.
• ✓The company has expanded its product portfolio into metal beam crash barriers and GI tubular poles. It commenced manufacturing W-beam and Thrie-beam crash barriers in FY25 and added GI tubular poles to its product portfolio in FY26, catering to road safety, street lighting, electrification, and public utility applications.
• ✓The company has a diversified customer base across multiple end-use sectors. Its steel pipes, tubes, crash barriers, and GI tubular poles are supplied for applications across water supply and plumbing, infrastructure and construction, roads and highways, bridges, oil and gas, chemicals, agriculture and rural electrification.
• ✓The company has increased its dealer network in recent years. The number of dealers increased from 34 in FY24 to 53 as of June 30, 2026, with the majority of its dealers located in the northern states of India.
• ✓The company has reported growth in revenue from operations over the last three financial years. Revenue from operations increased from Rs 645.44 crore in FY24 to Rs 586.40 crore and then Rs 675.39 crore in FY26.

Risks

• !The company’s manufacturing operations are concentrated at a single facility in Hisar, Haryana, making its business dependent on the continuous functioning of this location. Any disruption caused by machinery breakdown, power or utility failure, natural disasters, severe weather, civil unrest, or adverse social, economic, or political developments in the region could result in production delays, higher costs, and loss of revenue. The company also does not have a formal documented disaster recovery or business continuity plan or specific business interruption insurance, which could increase the impact of prolonged disruptions.
• !The company is dependent on a limited group of suppliers for its raw material purchases. Its top 10 suppliers accounted for Rs 474.12 crore (76.23%), Rs 388.98 crore (70.92%), and Rs 456.61 crore (75.73%) of total purchases in FY26, FY25, and FY24, respectively. Any disruption in supplies or inability of these suppliers to meet requirements could result in higher procurement costs, production delays, and pressure on profit margins.
• !A significant portion of the company’s revenue is derived from the sale of black pipes and galvanised pipes. Revenue from black pipes stood at Rs 290.26 crore (42.98%), Rs 271.51 crore (46.30%), and Rs 317.47 crore (49.19%) in FY26, FY25, and FY24, respectively. Revenue from galvanised pipes stood at Rs 179.42 crore (26.57%), Rs 209.63 crore (35.75%), and Rs 288.01 crore (44.62%) during the same periods. Any decline in demand for either product, increased competition, or inability to maintain sales could adversely affect the company’s revenue, profitability, and cash flows.
• !The company derives a significant portion of its revenue from its top 10 customers. These customers contributed Rs 137.12 crore (20.32%), Rs 93.51 crore (15.96%), and Rs 102.72 crore (15.90%) to revenue from operations in FY26, FY25, and FY24, respectively. Any loss of key customers or decline in orders from them could adversely affect the company’s revenue, cash flows, and financial performance.
• !The company has reported negative cash flows from operating, investing, and financing activities in certain periods. Operating cash flow was negative at Rs 5.69 crore in FY26, primarily due to funds blocked in a net increase in current assets of Rs 41.43 crore, while investing cash flow was negative at Rs 9.86 crore, mainly due to the purchase of fixed assets of Rs 9.18 crore. In FY24, investing cash flow was negative at Rs 43.04 crore, primarily due to the purchase of property, plant and equipment of Rs 52.05 crore, while financing cash flow was negative at Rs 17.65 crore in FY25, mainly due to repayment of borrowings and interest payments. Continuation of negative cash flows could adversely affect the company’s liquidity and financial position.
• !The company’s revenue is concentrated in Haryana, exposing it to developments in the state. Revenue from operations from Haryana stood at Rs 192.80 crore (28.55%), Rs 179.42 crore (30.60%), and Rs 190.04 crore (29.44%) in FY26, FY25, and FY24, respectively. Any adverse changes in demand, customer preferences, procurement requirements, or state and local government policies, or a slowdown in economic activity in Haryana, could adversely affect the company’s sales, earnings, and cash flows.
• !The company, its promoters, and senior management are involved in certain ongoing legal proceedings. These matters are pending before various judicial authorities at different levels of adjudication, and any adverse judgments or orders could result in additional liabilities and adversely affect the company’s financial position and operations.
• !The company has significant outstanding borrowings, including secured and unsecured loans. As of June 30, 2026, its total outstanding borrowings stood at Rs 91.23 crore. Failure to service or repay these borrowings could adversely affect the company’s cash flows, financial position, and operations.
• !The company had trade receivables of Rs 32.99 crore as of June 30, 2026, indicating that a significant amount of funds remained tied up in amounts due from customers. Any delay or failure in collecting these receivables could increase the company’s working capital requirements, adversely affect its liquidity and cash flows, and may result in provisions or write-offs if amounts become difficult to recover.

About Jindal Supreme

Jindal Supreme (India) Limited is engaged in the manufacture and supply of steel pipes, tubes, and related products for infrastructure and industrial applications. Its product portfolio includes mild steel (MS) black pipes and tubes, galvanised pipes and tubes, metal beam crash barriers, and galvanised iron (GI) tubular poles. These products are used in water supply and plumbing, infrastructure and construction, roads and highways, bridges, oil and gas, chemicals, agriculture, rural electrification, and other applications. The company primarily sells its products directly to institutional buyers, including infrastructure contractors and industrial customers, and also supplies through a network of dealers, mainly in northern states of India. The company commenced operations in 1974 and has expanded its product portfolio over the years. Its manufacturing facility is located in Hisar, Haryana, and is equipped with machinery, mills, welding plants, and galvanising plants, along with an in-house maintenance workshop and testing equipment.