Jindal Worldwide shares rose 20% on Thursday following the announcement by its subsidiary, Jindal Mobilitric, to open 100 electric vehicle showrooms by FY28. Investors are weighing the company's aggressive retail expansion against its ongoing efforts to reduce debt and manage its core textile business.
Shares of Jindal Worldwide hit the 20% upper circuit on Thursday, following a major expansion announcement from its electric vehicle subsidiary, Jindal Mobilitric Private Limited. The company plans to scale its retail footprint to 100 showrooms by the end of fiscal year 2028, with a mid-term target of establishing 40 outlets by the end of fiscal year 2027.
Jindal Mobilitric, in which Jindal Worldwide holds a 92.5% stake, has already begun setting up its physical presence. The company has launched pilot showrooms in Srinagar and Jaipur and has secured 52 dealership appointments to support its growth across urban and semi-urban markets. This retail push is supported by the company’s manufacturing facility in Ahmedabad, which features an annual capacity of 2.5 lakh vehicles and an in-house battery assembly unit.
The market reaction on Thursday reflects confidence in the company’s push into the electric mobility space. This diversification comes alongside a strong performance in its core business, with the company reporting an 85.8% year-over-year rise in consolidated net profit to ₹32.41 crore in the first quarter of fiscal year 2027. To support its balance sheet, the company has also undertaken a ₹650 crore rights issue, with a stated objective of achieving debt-free status by fiscal year 2027.
While the EV expansion offers a new growth vector, the company faces distinct challenges. The core textile business remains sensitive to the cyclical nature of demand and the volatility of cotton prices, which can significantly impact profit margins. Furthermore, the electric mobility market in India is increasingly competitive. The company faces the execution risk of scaling a large retail network across the country while managing its capital allocation. Investors will likely monitor how effectively the company can balance its debt-reduction goals with the capital spending required to build this retail chain.
The primary monitorables for investors going forward will be the timeline for showroom rollouts, the pace of order execution for its electric vehicles, and the company’s ability to maintain stable margins in both the new EV division and the established textile business.