JSW Steel raises capacity target to 80 mtpa amid strong FY26 results
Mumbai: Led by Sajjan Jindal JSW Steel plans to nearly double its steel production capacity to around 80 million tonnes per annum (mtpa) by 2031 through aggressive brownfield expansion and joint ventures, positioning India’s largest steelmaker among the world’s largest producers. The expansion roadmap comes as the company reported strong results for FY26 and the March quarter.
Headquartered in Mumbai, the steelmaker currently has an annual capacity of 37.9 mtp.
During a post-earnings interaction with analysts on Thursday, joint managing director and chief executive officer Jayant Acharya said JSW Steel has increased its standalone capacity target to 62 mtpa by FY32 from its previous target of 50 mtpa by 2031.
“In addition, JFE and POSCO’s joint ventures will have a cumulative capacity of 16 million tonnes by FY32, taking the total capacity in India with the joint ventures to 78 million tonnes, including our Ohio capacity of 1.5 million,” Acharya said.
The company allocated ₹1.26 trillion in capital investment over the next four to five years to finance the expansion programme.
JSW Steel has also stepped up efforts to secure key raw materials safely. the recent acquisition of coking coal assets in Mozambique and increasing stakes in Australia’s Illawarra coal mines. Acharya said JSW Steel now expects to achieve 50% integration for both iron ore and coking coal by FY31.
According to the company, India’s steel consumption grew at a healthy rate of 7.9% in FY26 and is expected to rise 7-9% in FY27, with demand rising by 12-14 million tonnes.
Acharya said steel producer India believes that steel production will lag behind consumption growth and demand is expected to remain resilient, but “risks such as volatility in energy prices and monsoon-related uncertainties need to be monitored.”
Steel prices began to recover from January after reaching near multi-year lows in November 2025. “Some of this recovery in prices will occur in the first quarter of 2027,” Acharya said.
On Thursday, the company announced its consolidated net profit. ₹22,316 crore for the financial year, an increase of almost six times on a year-on-year basis. ₹3,504 crore in the previous year ₹8,994.22 crore estimate by 35 analysts surveyed Bloomberg. However, the reported profit also includes a one-off gain. ₹18,051 crore on sale of assets of Bhushan Power and Steel.
Consolidated revenue from operations increased by 10% year-on-year ₹1,85,470 crore in FY26. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 30% compared to the same period last year ₹29,821 crore in FY26 ₹22,904 crore in the previous financial year.
However, analysts are cautious about the demand outlook.
“Steel demand in India largely depends on sectors like capital infrastructure, public expenditure, automobiles, engineering,” said Sumar Kumar, metals and mining analyst at brokerage firm Philip Capital. “Given the uncertainty due to depreciation of rupee and rise in coking coal prices…steel prices may be supported by cost inflation, but modest demand weakening due to weakening macros may impact profitability in the next 1-2 quarters.”
In the last quarter ending March, JSW Steel reported a 14% increase in operating income. ₹51,180 crore ₹44,819 crore in the same quarter of the previous year. Profit attributed to company owners increased ₹16,370 crore this quarter ₹1,503 crore in Q25.
“JSW Steel ended FY26 and the March quarter on a strong note, supporting both revenue growth and profitability, aided by higher volumes and improvement in steel prices. The company has also outlined an ambitious roadmap to build an 80 million tonnes steel ecosystem over the next few years, but the pace and execution of these expansion plans will remain key watchdogs as regulatory clearances with the government take time for new field projects,” Kumar said.
