Analyst Concall
JSW Steel to increase captive iron ore capacity in next 1 yr
This story was originally published at 21:09 IST on 23 January 2026
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--JSW Steel: Plan to incur capex of INR 1 tln over next 4-5 years
--JSW Steel: Plan capex of INR 316 bln for phase 1 of steel plant in Odisha
--JSW Steel: Retain 29.2 mln tn sales, 30.5 mln tn production guidance FY26
--JSW Steel: Expect FY26 capex to be INR 150 bln-INR 160 bln
--JSW Steel: Hope to commission slurry pipeline in Jan-Mar FY27
--JSW Steel: Higher steel prices to offset high raw material costs Jan-Mar
--JSW Steel: Jan-Mar margin should be better with high steel prices
--JSW Steel: Value-added pdt mix, operational efficiency supported Q3 EBITDA
--JSW Steel: Demand for steel looks good in Jan-Mar
--CONTEXT: JSW Steel mgmt's comments in post-earnings concall with analysts
--JSW Steel: On track to reach 50 mtpa steel capacity by FY31
By Sunil Raghu and Arya S. Biju
AHMEDABAD/MUMBAI – JSW Steel Ltd. has drawn up plans to spend INR 1 trillion in capital expenditure over the coming four to five years, with a debt component of nearly INR 800 billion, the management told analysts in a conference call after the announcement of its December quarter earnings Friday.
"...you can spread it equally. Higher in the next year (FY27), next two years, and then slowly go down," the management said, adding that they would provide a full break-up, year wise in their annual report in May.
The company is seeking to expand its steel-making capacity to 50 million tonnes by 2030-31 (Apr-Mar). The key projects of this investment pipeline include the board-approved 5 million tonne greenfield steel plant at Jagatsinghpur in Odisha, to be developed by its subsidiary JSW Utkal Steel Ltd. at a cost of INR 316 billion, with commissioning targeted by FY30. The port-based facility, backed by captive jetties, pellet plants and a slurry pipeline linking iron ore mines, offers scope for phased expansion to over 13 million tonnes.
The company is also advancing multiple brownfield projects. It is expanding capacity at Dolvi to 15 million tonnes from 10 million tonnes, with commissioning expected by September 2027. The 5 million tonne expansion at Vijaynagar is said to be fully ramped up, while a 1.5-million-tonne blast furnace upgrade there is on track for completion by the end of FY26. JSW Steel has additionally approved downstream expansions, including new galvanised and galvalume lines at Rajpura, which will lift value-added capacity by around 4 million tonnes.
The company's capital expenditure for the December quarter was roughly INR 35 billion and for first nine months of FY26 it was INR 100 billion. The management sees capital expenditure for the whole year at INR 150 billion-INR 160 billion. The annual capital expenditure is likely to remain elevated into FY27, as execution accelerates across major projects and enabling infrastructure, before tapering later.
Operationally, the company reported consolidated crude steel production of 7.48 million tonnes in the December quarter, up 6% on year, despite planned shutdowns for capacity enhancements. Indian operations ran at about 93% utilisation, excluding the impacted blast furnace. Sales volume rose 14% on year to a record level, aided by the ramp-up at Vijayanagar and inventory liquidation.
Value-added products accounted for 61% of total sales, reflecting the company's continued shift towards higher-margin segments.
The management sees higher steel prices on improved steel demand to offset high raw material costs in the March quarter. It also expects better margins in the March quarter. In the December quarter, value-added product mix and operational efficiency supported its earnings before interest, tax, depreciation and amortisation. Retaining its sales guidance of 29.2 million tonnes and production guidance of 30.5 million tonnes for FY26, the management expects steel demand in India to grow 7-9% in FY27. The management sees this growth coming from infrastructure spending, construction activity, and improving private capital expenditure.
JSW Steel announced its December quarter earnings Friday. The company's consolidated net profit jumped up 198% on year to INR 21.39 billion and revenue from operations rose 11% on year to INR 459.91 billion. On the National Stock Exchange, shares of the company closed 1.2% lower at INR 1,170. End
Edited by Ashish Shirke
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