Jindal Steel Expands Steel Making Capacity to 15.6 MTPA in FY26; Targets Up to 11.5 Million Tonnes Production in FY27

Published at : Aug 31, 2026 08:13 AM (IST)

Total Views : 65

Jindal Steel Expands Steelmaking Capacity to 15.6 MTPA in FY26; Targets Up to 11.5 Million Tonnes Production in FY27

-Jindal Steel increased its steelmaking capacity from 9.6 MTPA to 15.6 MTPA in FY26 following the successful Angul expansion, while reporting an 18% rise in PAT to Rs. 3,361 crore.

-The company achieved 14% growth in steel production and 9% growth in sales during FY26, supported by higher capacity utilisation and an expanding portfolio of value-added products.

- For FY27, Jindal Steel targets production of 11-11.5 million tonnes and sales of 10.5-11 million tonnes, backed by continued capacity ramp-up and strong domestic steel demand.
The Print Times | May  2, 2026:

Jindal Steel Limited reported a milestone year in FY26, marked by the successful expansion of its steelmaking capacity, higher production and sales volumes, and continued progress on its integrated raw material and digital transformation strategies.

Speaking during the Q4 & FY26 Earnings Conference Call, Mr. Gautam Malhotra, Chief Executive Officer, Jindal Steel Limited, said FY26 was a defining year for the company, with its steelmaking capacity increasing from 9.6 million tonnes per annum (MTPA) to 15.6 MTPA following the expansion at its Angul facility. He added that the company has steadily ramped up the newly commissioned capacities while improving operational efficiencies across its manufacturing sites at Angul, Raigarh and Patratu.

Mr. Malhotra said the company is now well positioned to deliver higher production volumes and expand its portfolio of value-added steel products to meet India's growing infrastructure demand.

Providing an overview of the global steel market, he noted that the industry is entering a phase of gradual recovery, with global steel demand projected to grow by 0.3% in 2026 to 1.7 billion tonnes, accelerating to 2.2% in 2027 to reach 1.762 billion tonnes. While China's steel demand continues to contract, India and other developing Asian economies remain the primary growth drivers. Developed markets, including the European Union, the United States and Japan, are also expected to return to positive growth in 2027.

Discussing China, Mr. Malhotra said crude steel production stood at 950 million tonnes in CY25, declining 5% year-on-year, while domestic steel demand contracted by 7%, resulting in persistent oversupply. Consequently, Chinese steel exports reached a record 119 million tonnes during the year.

Turning to the Indian market, he said India continues to strengthen its position as the world's fastest-growing major steel market. Domestic steel demand is projected to grow 7.4% in 2026 and further accelerate to 9.2% in 2027, supported by infrastructure development, construction activity, automotive demand, industrial capital expenditure and railway expansion.

During FY26, India's finished steel consumption increased 8% year-on-year to 164.2 million tonnes, while crude steel production rose 11%. In the fourth quarter alone, finished steel consumption reached 44.6 million tonnes, while crude steel output stood at 44.7 million tonnes, representing sequential growth of 10% and 5%, respectively. Mr. Malhotra also noted that India became a net steel exporter during FY26 with exports of 0.1 million tonnes, while the safeguard duty on flat steel imports was revised from 12% to 11.5%, effective April 21, 2026.

Highlighting the company's expansion programme, Mr. Malhotra said significant progress was achieved at the Angul complex during FY26. The project includes the commissioning of Blast Furnace-2 (4.6 MTPA), while Direct Reduced Iron Plant-2 (2 MTPA) remains under construction. Steelmaking capacity has been enhanced by 6 million tonnes through the addition of BOF-2 and BOF-3, each with a capacity of 3 MTPA.

The company also commissioned a 1.2 MTPA Cold Rolling Complex, aimed at expanding its value-added product portfolio, and operationalised the 1,050 MW Shree Bhoomi Power Plant, comprising two 525 MW units. In addition, the coal conveyor connecting the Utkal C thermal coal mine to Angul has become operational, while the slurry pipeline from Barbil to Angul is nearing completion and is expected to be commissioned during the first quarter of FY27.

As part of its raw material integration strategy, Jindal Steel was declared the preferred bidder for the Thakurani-A1 iron ore block in Odisha. The company had also secured the Saradhapur Jalatap East coal block during the previous year to strengthen thermal coal availability.

Operational performance improved significantly during FY26. Steel production increased to 9.25 million tonnes, registering 14% year-on-year growth, while steel sales reached 8.68 million tonnes, up 9% over FY25.

During the fourth quarter, production stood at 2.65 million tonnes, reflecting 6% sequential growth and 26% year-on-year growth, while sales increased to 2.62 million tonnes, recording 15% quarter-on-quarter growth and 23% year-on-year growth.

According to the company, the improved performance reflects the successful ramp-up of the Angul expansion and higher capacity utilisation across manufacturing operations, supported by stronger steel demand and an increasing share of value-added products.

On the financial front, Jindal Steel reported consolidated gross revenue of Rs. 62,412 crore for FY26, representing 8% growth over the previous year. Consolidated adjusted EBITDA stood at Rs. 9,099 crore, with adjusted EBITDA per tonne of Rs. 10,482, compared with Rs. 11,712 per tonne in FY25. Profit after tax increased 18% year-on-year to Rs. 3,361 crore, translating into earnings per share of Rs. 33. The Board of Directors recommended a final dividend of Rs. 2 per share.

For the fourth quarter, consolidated gross revenue rose to Rs. 19,399 crore, compared with Rs. 15,172 crore in Q3 FY26, registering 28% sequential growth. The improvement was supported by higher production from the expanded Angul facility and stronger recovery in hot rolled coil (HRC) and TMT rebar prices. The blended average selling price increased by Rs. 4,743 per tonne quarter-on-quarter.

Quarterly adjusted EBITDA stood at Rs. 2,647 crore, with adjusted EBITDA per tonne of Rs. 10,093, while profit after tax reached Rs. 1,041 crore. The company also recognised an impairment charge related to its Australian mining assets. Following the closure of the shaft, reserves are no longer accessible, although mining licences remain valid. Accordingly, Jindal Steel recognised an impairment of Rs. 1,433 crore in the standalone business and Rs. 834 crore in the consolidated financial statements.

As of March 31, 2026, consolidated net debt stood at Rs. 16,019 crore, with a Net Debt-to-EBITDA ratio of 1.66x and a Debt-to-Equity ratio of 0.43x. Management expects leverage metrics to improve further by the second quarter of FY27 as newly commissioned capacities generate stronger operating cash flows. During FY26, the company invested Rs. 9,574 crore towards its ongoing expansion programme. Out of the total planned capital expenditure of Rs. 47,043 crore, investments of Rs. 35,498 crore have already been made between FY22 and FY26, leaving Rs. 11,545 crore to be invested under the current programme.

Mr. Malhotra also highlighted Jindal Steel's digital transformation initiatives, stating that the company is building an intelligent manufacturing ecosystem through artificial intelligence, robotics and integrated digital platforms.

The company's JARVIS (Jindal AI for Real-time Visibility, Intelligence and Systems) platform integrates production, sales and business data into a unified intelligence layer to support smarter decision-making and autonomous operations.

On sustainability, Jindal Steel outlined a phased ESG roadmap. By 2030, the company aims to achieve a 30% reduction in carbon intensity, source 50% renewable energy, and implement biodiversity programmes across all manufacturing locations. The roadmap further targets scaling hydrogen, circular economy initiatives and carbon capture infrastructure between 2030 and 2040, with the long-term objective of achieving net-zero emissions, zero waste and net-positive biodiversity by 2047.

The company's sustainability performance received significant external recognition during FY26, with S&P Global improving Jindal Steel's ESG score from 37 to 74, while its Corporate Sustainability Assessment (CSA) score increased from 30 to 72.

Looking ahead, Mr. Malhotra said the continued ramp-up of Angul's expanded facilities will support higher production and sales volumes in FY27. The company expects Indian steel demand to remain robust, driven by infrastructure and construction activity, while steel prices are expected to remain supportive despite continued volatility in coking coal prices.

For FY27, Jindal Steel has set a production target of 11-11.5 million tonnes and sales guidance of 10.5-11 million tonnes. However, management expects coking coal prices to increase by US$20-25 per tonne sequentially during the first quarter of FY27.

Published at : Aug 31, 2026 08:13 AM (IST)

Total Views : 65