India’s steel industry plays a pivotal role in the country’s economic development, ranking as the second-largest crude steel producer globally after China. In FY24, India’s crude steel production reached approximately 143 million tonnes, with expectations to cross 300 million tonnes by 2030, driven by rising infrastructure demand, real estate growth, and government initiatives like PM Gati Shakti and Make in India.
The sector contributes nearly 2 percent to India’s GDP and is a major employment generator, supporting allied industries like automotive, construction, and capital goods. With increasing urbanization and the government’s focus on building smart cities, highways, and rail networks, domestic steel demand is projected to grow at a CAGR of 7 to 8 percent over the next few years.
In this rapidly expanding landscape, JSW Steel and Tata Steel stand out as two of India’s leading players, both with strong legacies, expansive capacities, and global footprints.
Price Movement
The shares of JSW Steel Ltd. trading at Rs. 1,012.85 per share on Wednesday, rising 0.60 percent from its previous closing price of Rs. 1,006.95 per share. The shares have delivered over 8.83 percent returns in a year and over 425 percent returns in a five-year period.
Similarly, the shares of Tata Steel Ltd trading at Rs. 155.75 per share on Wednesday, raising 0.61 percent from its previous closing price of Rs.154.80 per share. The shares have delivered negative 11.31 percent returns in a year but over 380 percent returns in a five-year period.
Manufacturing Capacities
JSW Steel Ltd is on a significant growth trajectory, with its current crude steel capacity standing at 35.7 million tonnes per annum (MTPA), including 34.2 MTPA in India and 1.5 MTPA in the U.S.. The company has laid out a clear capital expenditure (Capex) plan that aims to increase total capacity to 43.4 MTPA by September 2027, driven primarily by brownfield expansions, particularly at the Vijayanagar and Dolvi plants. Of this, 41.9 MTPA will be in India, while the U.S. capacity remains constant at 1.5 MTPA.
Looking further ahead, JSW Steel has identified a future potential capacity of 51.5 MTPA by FY31, with India contributing 50 MTPA, reflecting the company’s focus on strengthening its domestic manufacturing base while maintaining a steady international footprint. This strategic growth aligns with India’s rising steel demand and positions JSW Steel as a dominant force in the sector.
Tata Steel Ltd reported a consolidated EBITDA of Rs.25,802 crores, up 10 percent YoY, driven by its highest-ever crude steel production of 21.7 million tonnes in India (up 4 percent). Indian deliveries accounted for 68 percent of total volumes. The company incurred a capital expenditure of Rs.15,671 crores and maintained strong liquidity of Rs.38,791 crores. A dividend of Rs.3.60 per share has been recommended.
Strategic milestones include commissioning India’s largest blast furnace (5 MTPA) at Kalinganagar and the first coil from a 2.2 MTPA Cold Roll Mill. Tata Steel turned around Neelachal Ispat Nigam Ltd, generating Rs.1,000+ crores EBITDA and Rs.1,100 crores FCF. At Port Talbot, UK, the decommissioning of blast furnaces cut fixed costs by 23 percent (Rs.2,600+ crores). Restructuring at Tata Steel Netherlands is expected to deliver a Rs.4,600+ crores turnaround, alongside Rs.11,500 crores in cost competitiveness programs.
Future Guidance
JSW Steel has provided FY26 guidance with an expected crude steel production of 30.5 million tonnes and sales volume of 29.2 million tonnes. The majority of this will come from its consolidated India operations, which are projected to produce 29.5 million tonnes and sell 28.2 million tonnes. The USA, Ohio operations are expected to contribute 1 million tonne each to both production and sales.
Tata Steel expects a 1.5 million tonnes increase in deliveries for FY26, primarily driven by India, with the Kalinganagar plant adding around 2 million tonnes of capacity. This growth is partially offset by planned blast furnace relining at Jamshedpur following maintenance in FY25. Volumes in the UK are expected to remain flat, while the Netherlands may see a slight rise. Overall, the company aims for net positive volume growth by focusing on Indian operations and managing maintenance downtimes.
Financial Performance
JSW Steel Ltd reported consolidated revenue of Rs.1,68,824 crores in FY25, down 3.54 percent from Rs.1,75,006 crores in FY24. The company’s net profit for FY25 was Rs.3,491 crores, an decrease of 61.07 percent compared to Rs.8,973 crores in the previous year.
Meanwhile, on the other hand, Tata Steel Ltd reported consolidated revenue of Rs.2,18,543 crores in FY25, down 4.62 percent from Rs.2,29,171 crores in FY24. The company posted a net profit of Rs.3,174 crores in FY25, recovering from a net loss of Rs.4,910 crores the previous year, which was impacted by negative exceptional items amounting to Rs. 7,814 crores.
Written by – Siddesh S Raskar
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