JSW Steel CEO Jayant Acharya remains optimistic about India's steel demand, asserting that the current oversupply situation in the global market is only temporary. He believes that the rapidly growing Indian economy will be able to absorb the excess steel, even as the international market grapples with trade protection measures and cheaper imports.
Acharya's bullish outlook is supported by projections of strong domestic demand growth. JSW Steel anticipates an 8-9% increase in domestic steel demand in FY26. This confidence stems from India's robust economic momentum, particularly in the construction sector, which is a major consumer of steel. He noted that while exports need monitoring due to tariff actions by various countries, JSW Steel is optimistic about a strong second half, supported by improving steel prices and higher production volumes.
Despite the positive outlook, Acharya has expressed concerns regarding increasing steel imports, particularly from China. He cautioned India to remain watchful against potential dumping of low-priced steel, especially with global oversupply concerns exacerbated by tariffs imposed by the United States. He noted that while the safeguard duties of 12% have been helpful, their effectiveness is eroding. He also pointed out that India's 12% safeguard duty on certain flat steel products is relatively low compared to other nations.
JSW Steel has been proactively expanding its production capacity to meet the anticipated surge in demand. The company is expected to reach a capacity of 41.9 million tonnes by FY27, with further expansion planned with the addition of a 1 MTPA electric arc furnace plant in Kadapa, Andhra Pradesh, targeted for completion by the end of FY29, bringing production to 42.9 million tonnes. JSW Steel aims for a 50 million tonnes capacity by 2030.
In the second quarter of FY26, JSW Steel produced 7.90 million tonnes of crude steel, a 17% increase compared to the previous year. This growth was primarily driven by the Dolvi plant operating at full capacity after maintenance, along with the ramp-up of JSW Vijayanagar Metallics Limited and Bhushan Power and Steel Ltd expansions. The company's consolidated capital expenditure for Q2 FY26 was ₹3,135 crore, and ₹6,535 crore for the first half of FY26, with an expected spend of ₹20,000 crore for the entire fiscal year.
JSW Steel reported a consolidated net profit of ₹1,623 crore for the quarter ended September 30, 2025, a significant increase from ₹439 crore the previous year. Revenue from operations rose 14% to ₹45,152 crore, while adjusted EBITDA jumped 39% to ₹7,849 crore, driven by higher volumes and lower input costs. Acharya acknowledged that prices have been softer during the monsoon season but expects them to improve in November–December.
While remaining cautious about the global outlook for 2026 due to geopolitical uncertainty and high tariffs, JSW Steel maintains a broadly positive outlook on the domestic economic momentum. The company's strategy includes closely monitoring imports, expanding capacity, and focusing on cost efficiency to capitalize on India's growing steel demand.
