More Stories

Informist, Thursday, May 14, 2026

 

Please click here to read all liners published on this story

--JSW Steel: Targeting 62 mln-tonne total capacity by FY32
--CONTEXT: JSW Steel mgmt's comments in post-earnings call with analysts
--JSW Steel:India steel output growth next 10 yrs may lag consumption growth
--JSW Steel: See 7-9% growth in domestic steel demand in FY27
--JSW Steel: Currently 13 of co's total 25 iron ore mines operational
--JSW Steel: Expect coking coal costs to be higher in Q1
--JSW Steel: Company's exposure to gas-linked production low
--JSW Steel: Cost of production up on supply disruption amid West Asia war
--JSW Steel: See co's capacity additions cater to higher India demand
--JSW Steel: Increased flats prices in Apr, May; see them range-bound ahead
--JSW Steel: See co's iron ore costs in Q1 slightly higher than in Q4
--JSW Steel: See co's iron ore cost rising 5% sequentially in Q4
--JSW Steel: See seaborne freight costs rise in Q1 vs Q4

 

By Rajesh Gajra and Eshitva Prakash

 

MUMBAI – JSW Steel Ltd. is likely to incur another INR 1 trillion of capital expenditure between now and the financial year 2032-33 (Apr-Mar) to meet its ambitious targets of touching an installed capacity of 62 million tonnes per annum by the end of FY32 and over 10 million tonnes per annum by FY32 for its joint ventures with JFE Steel and POSCO, the management told analysts and investors on a post-earnings call Thursday. The company had incurred capital expenditure of nearly INR 156 billion in FY26, and has guided for capital expenditure of INR 1.26 trillion over 4-5 years starting from the current financial year. The total capital expenditure plan of the company till FY33, therefore, amounts to INR 2.26 trillion.

 

The company Thursday guided for capital expenditure of INR 220 billion-INR 240 billion for FY27. Domestic steel demand is expected to grow by 7-9% in FY27, a top official said on the call. Given that demand in India is likely to grow rapidly, "we believe that capacities are going to follow demand and there will be a lag (in production) in the medium term up to 2030," the official said. The ambitious capacity addition plan of the company, and the ensuing capital expenditure, is in this backdrop, the management indicated.

 

To a question on risks to volumes from the impact of the West Asia war on natural gas and liquefied petroleum gas supplies, the management said the company's exposure to natural gas-linked production is limited in the overall production. "However, it does have an impact on the cost of production" through higher gas prices, a top official said. The company's exposure to natural gas is just 5-6% of its total production volume, he said.

 

The company uses a "little bit of LPG" in its downstream production, according to the management. The severe LPG supply disruptions due to the war would have posed challenges for JSW Steel. "But we have been converting to different fuels, and, therefore, we are able to mitigate some part of the impact of the LPG price," a top official said.

 

To a question on steel price hikes, the JSW Steel management said the company increased selling prices of flat steel products in April, and also in May so far. "As of now, we believe this (flat steel prices) would be range-bound going into this quarter (Apr-Jun)," he said.

 

The June quarter will likely put pressure on input costs for JSW Steel. A top official said the company is factoring in a 5% sequential increase in iron ore costs in the quarter. "On iron ore, we have 25 iron ore mines out of which 13 are currently operational," he said. The rest of the mines are under exploration, he added. The company aims to upgrade its available captive iron ore sources, he said.

 

The management also expects coking coal costs to rise in the June quarter. This is likely to be in the form of higher shipping freight charges due to the West Asia war. "There is a large part of the seaborne trade" for JSW Steel, "whether it is the import of coking coal or other coal, or coastal movements," the official said.

 

JSW Steel reported its March quarter financial results Thursday. Its consolidated net profit rose to INR 163.70 billion, against the year-ago quarter's net profit of INR 15.03 billion. The surge in net profit was mainly due to a large one-time gain of INR 180.51 billion from the transfer of its subsidiary Bhushan Power and Steel Ltd.'s assets to JSW Sambalpur Steel Ltd. on a slump-sale basis with effect from Mar. 27 for a consideration of INR 294.75 billion.

 

The company's consolidated revenue from operations for the March quarter increased 14% on year to INR 511.80 billion. Its shares closed at INR 1,296.90 on the National Stock Exchange, up 1.7% from Wednesday.  End

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.