JSW Steel is investing $2.5 billion in capacity expansion

JSW Steel Ltd., India’s largest steel producer, has announced ambitious expansion plans. In the next fiscal year (FY 2027), the company’s capital expenditures will range from 220 to 240 billion rupees (approximately $2.5 billion). This is nearly 50% more than the previous year’s investments, which totaled 155.85 billion rupees. This was reported by Bloomberg.

JSW Steel’s investment activity is driven by the rapid development of India’s infrastructure. The Indian government is directing billions of dollars toward the construction of highways, ports, and airports, aiming to accelerate the country’s economic growth and transform it into a developed economy by 2047.

The company’s plans for capacity expansion:

by 2030, JSW Steel plans to increase its total capacity to 48.8 million tons per year (from the current 31.9 million tons);
The Board of Directors has approved an expansion of one of the subsidiary’s production capacity by 5 million tons per year. The cost of this project is 260 billion rupees, and commissioning is scheduled for the 2030 fiscal year.

According to CEO Jayanta Acharya, steel demand in India is expected to grow by 7–9% in the current 2027 fiscal year. At the same time, domestic metal prices are likely to remain within a stable range following sharp spikes in April and May.

The company considers geopolitical instability in the Middle East to be the main risk to further growth. This could lead to prolonged disruptions in supply chains, rising energy prices, and further intensification of inflationary pressures.

According to Reuters, the company posted strong results for the quarter ended March 31:

• JSW Steel’s sales volume rose 6% during the quarter, driven by a 10.4% increase in steel consumption in India;
• revenue rose 14.2% year-over-year, reaching 511.8 billion rupees ($5.34 billion), exceeding analysts’ forecasts;
• net profit jumped to 163.7 billion rupees. This significant figure is due to one-time income (approximately 179 billion rupees) from the sale of the Bhushan Power and Steel steelmaking business;
• operating margin (EBITDA) improved from 14.23% to 16.87% thanks to higher product sales, despite rising coking coal prices.

The positive trend was driven by a recovery in steel prices, facilitated by import tariffs on Chinese steel imposed by New Delhi and increased export demand following tariff reductions in the U.S.

As reported by GMK Center, JSW Steel and POSCO have established a joint venture to build a steel plant with a production capacity of 6 million tons per year in the state of Odisha (India).

For JSW Steel, this partnership aligns with its long-term vision of expanding steelmaking capacity from 35.7 million tons per year to 50 million tons per year in India by the 2030/2031 fiscal year.