JSW Steel raises capacity target to 80 mtpa amid strong FY26 results

Mumbai: Sajjan Jindal-led JSW Steel plans to nearly double its steelmaking capacity to about 80 million tonnes per annum (mtpa) by 2031 through aggressive brownfield expansion and joint ventures, positioning India’s largest steelmaker among the world’s biggest producers. The expansion roadmap came as the company reported strong results for FY26 and the March quarter.

The Mumbai-headquartered steelmaker currently has a capacity of 37.9 mtpa.

During a post-earnings interaction with analysts on Thursday, joint managing director and chief executive officer Jayant Acharya said JSW Steel has raised its standalone capacity target to 62 mtpa by FY32 from its earlier goal of 50 mtpa by 2031.

“In addition to this, the joint ventures of JFE and POSCO will have a cumulative capacity of 16 million tonnes by FY32, taking the total capacity in India along with joint ventures to 78 million tonnes, including our Ohio capacity of 1.5 million,” Acharya said.

The company has earmarked ₹1.26 trillion in capex over the next four to five years to fund the expansion programme.

JSW Steel has also stepped up efforts to secure key raw materials with a recent acquisition of coking coal assets in Mozambique and an increased stake in Australia’s Illawarra coal mines. JSW Steel now expects to achieve 50% captive integration for both iron ore and coking coal by FY31, Acharya said.

As per the company, India’s steel consumption grew at a healthy rate of 7.9% in FY26 and is expected to grow 7-9% in FY27, incrementally adding 12-14 million tonnes of demand.

While the steelmaker believes India’s steel production will lag consumption growth and demand is expected to remain resilient, “risks such as energy price volatility and monsoon-related uncertainties need to be monitored”, Acharya said.

Steel prices rebounded starting in January after nearing multi-year lows in November 2025. “Some part of this price recovery will be realized in Q1FY27,” said Acharya.

On Thursday, the company reported consolidated net profit of ₹22,316 crore for the fiscal year, a nearly six-fold jump year-on-year (y-o-y) from ₹3,504 crore a year earlier, beating the ₹8,994.22-crore projection of 35 analysts polled by Bloomberg. However, the reported profit includes a one-time gain of ₹18,051 crore related to sale of its Bhushan Power and Steel assets.

Consolidated revenue from operations jumped 10% y-o-y to ₹1,85,470 crore in FY26. Earnings before interest, tax, depreciation and amortization (Ebitda) grew 30% y-o-y to ₹29,821 crore in FY26 from ₹22,904 crore in the previous fiscal.

However, analysts are cautious on the demand outlook.

“Steel demand in India is heavily dependent on sectors such as capital infrastructure, public spending, automobiles, engineering, to name a few,” said Sumar Kumar, metals and mining analyst at brokerage firm Philip Capital. “Considering the uncertainty looming amidst depreciating rupee, rising coking coal prices…steel prices might be supported by cost push inflation but the plausible demand softening due to weakening macros could impact profitability in the next 1-2 quarters.”

In the latest quarter ended March, JSW Steel reported a 14% rise in revenue from operations to ₹51,180 crore from ₹44,819 crore in the same quarter a year earlier. Profit attributable to owners of the company rose to ₹16,370 crore in the quarter from ₹1,503 crore in Q4FY25.

“JSW Steel ended FY26 and the March quarter on a strong note, aided by higher volumes and an improvement in steel prices, which supported both revenue growth and profitability. The company has also outlined an ambitious roadmap to build an 80 million tonnes steel ecosystem over the next few years, although the pace and execution of these expansion plans will remain key monitorables as regulatory clearances with government take time for greenfield projects,” Kumar said.