JSW Steel sharpens expansion roadmap, eyes 55 mtpa capacity by FY31

MUMBAI: JSW Steel, India’s largest steelmaker by capacity, is accelerating its expansion plans and now expects to touch around 56 million tonnes per annum (mtpa) by FY31, according to the company’s top executive; This exceeds the previous target of 50 mtpa.

The higher target comes as the company emerges from a period of weak steel prices and margin pressure even as it steps up its raw material sourcing efforts and looks for early signs of a recovery in demand.

The annual target of 56 mtp is set by the company’s JFE Steel Corp. in Japan. It does not include the recently signed joint venture with JSW, in which JSW sold half of its stake in its subsidiary Bhushan Power and Steel Ltd (BPSL). Joint managing director and chief executive officer Jayant Acharya said that along with BPSL, the company is likely to reach 60 mtpa by FY 2031. Mint.

Jayant Acharya is joint managing director and CEO of JSW Steel.

“Therefore, without expansion of the BPSL joint venture, we expect to reach 56 million tonnes by the end of FY 2031,” Acharya said. Of this, 1.5 mtpa will be in the USA and the remaining 54.5 mtpa will be in India.

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In addition, management sees further increases at BPSL where capacity could potentially be increased from the current 4.5 million tonnes to 10 million tonnes, but this will be pursued independently by the joint venture partners. “This will be a parallel track where the joint venture partners will decide and then undertake it,” Acharya said.

The company also prepared a spending plan. ₹1 trillion in the next four to five years for capacity expansion.

“We’ll give you a year-by-year spread in our annual (and) fourth (quarter) results in May, but you can spread it out roughly evenly over four to five years. Next year, it’ll be a little bit higher over the next two years and then it’ll slowly come down,” Acharya told analysts during a third-quarter post-earnings interaction on Friday evening.

Currently, JSW Steel has a capacity of 35.7 mtpa, of which 4.5 mtpa is in BPSL and 1.5 mtpa in Ohio, USA.

JSW Steel, Tata Steel, Steel Authority of India and AMNS India will collectively add capacity of around 63.7 mtp per annum by 2031. Tata Steel is set to add around 13.4 mtp of capacity, increasing its capacity from 26.6 mtp to 40 mtp per annum. SAIL’s expansion will increase capacity from 21 mtpa to 35 mtpa, contributing to another 14 mtpa, while AMNS is planning a sharp increase of 16 mtpa by increasing capacity from 9 mtpa to 25 mtpa.

raw material pushing

Along with capacity expansion, JSW Steel is also increasing its efforts to secure raw materials. Acharya said the company expects to meet nearly 50% of its iron ore requirement by FY31 from captive mines supported by 23 mines operating in multiple states.

The company aims to achieve 25% closed-source use of coking coal; this rate could rise to 33-35% once the acquisition of a potential coking coal mine in Mozambique is completed.

Looking ahead, Acharya said the current quarter showed signs of improvement after many years of low steel prices and high input costs weighed on earnings.

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“I think now with the depreciation of the rupee and some improvement in domestic demand, I think prices will come to more reasonable levels this quarter,” the chief executive said. Higher coking coal costs will also lead to an increase in prices, he said, although he could not give guidance on the size of price increases.

“We estimate that the higher coking coal price will have an impact of $15-$20 per tonne this quarter, and we expect this impact to be mitigated by pricing and cost measures,” he said.

JSW Steel reports consolidated net profit ₹2,139 crore in the quarter ended December 31, 2025 ₹717 crore a year ago. Profit exceeded the record ₹1,406.7 crore consensus estimate from 13 analysts surveyed Bloomberg.

The Mumbai-based steelmaker reported an 11% year-on-year increase in revenue from its operations. ₹45,991 crore. Adjusted EBITDA increased by 22% YoY ₹6,620 crore and the EBITDA margin was 14.4%.

Profit for the December quarter was increased by the recognition of a one-time deferred tax asset. ₹1,439 crore in connection with BPSL and an exceptional provision regarding employees. ₹529 crore arising from changes in labor laws.

Excluding these items, profitability fell sequentially due to weak realizations and higher coal costs, but value-added products helped cushion the impact, Acharya added.

Adjusted EBITDA excludes unrealized foreign exchange gains and losses from long-term borrowings, while unrealized foreign exchange gains and losses from intercompany receivables are excluded.

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Regulatory review

On allegations of price dispute reported in the media, Acharya said he did not see any merit in the case and JSW Steel continued to comply with competition laws.

“JSW Steel is fully confident in its compliance with all applicable competition laws and local laws,” he said, adding that the product in question (TMT market) is highly price sensitive and dominated by secondary players.

Earlier this month, India’s competition watchdog found market leaders JSW Steel, Tata Steel, state-run SAIL and 25 other firms colluding on steel selling prices. Reuters The report, which cites a confidential document, could potentially subject companies and their executives to hefty fines.