India: JSW Steel’s crude steel production, sales edge higher y-o-y in FY’25

• FY’26 production guidance stands at 30.5 mnt, sales at 29.2 mnt
• Improving prices, lower costs expected to boost Q1FY’26 outlook

Indian steel major JSW Steel’s crude steel production and sales edged higher y-o-y in FY’25. The company logged crude steel production of 22.47 million tonnes (mnt) and sales of 21.74 mnt during the year.

The company achieved 98% of its production and sales guidance for FY’25, BigMint learnt from the company’s investors call held on 23 May 2025.

The company has provided a consolidated production guidance of 30.5 mnt and sales guidance of 29.2 mnt for FY’26. The company incurred approximately INR 3,700 crore in capex during the quarter and nearly INR 15,000 crore for FY’25.

Update on projects

• Around INR 2,700 crore was allocated for downstream expansion.
• Planned BF-3 shutdown at Vijayanagar in July 2025, which will upgrade the capacity of the furnace by 1.5 mnt.
• Vijayanagar steel plant’s expansion to 5 MTPA capacity
  • A Raw Material Handling System (RMHS), sinter plant, blast furnace (BF), and one steel melting shop (SMS) unit have been commissioned.
  • SMS Converter-2 is set to be commissioned in Q2FY’26.
  • Commercial production and sales from the hot strip mill (HSM) began in March 2024.
  • Overall ramp-up is progressing well.

Highlights

• Crude steel production edges up y-o-y: JSW Steel’s standalone crude steel production edged up by 1% y-o-y to 22.47 mnt in FY’25 as against 22.26 mnt in the previous year. Additionally, production remained stable y-o-y at 5.70 mnt in Q4FY’25, with capacity utilisation at Indian operations at 93% during the quarter.
• Sales rise 2% y-o-y: The company’s sales rose 2% y-o-y to 21.74 mnt in FY’25 as compared with 21.22 mnt in the preceding year. During Q4FY’25, steel sales edged up by 1% y-o-y to 5.77 mnt as compared with 5.69 mnt in the same period last year. Value-added and special products accounted for over 50% of total sales.
• Operating EBITDA declines y-o-y: The company’s operating EBITDA declined by 16% y-o-y to INR 18,381 crore in FY’25 as against INR 21,980 crore in the last year. Meanwhile, the same increased 14% y-o-y to INR 5,068 crore in Q4FY’25 from INR 4,442 crore in Q4FY’24.
• Inventories drop y-o-y, q-o-q: Inventories declined by 220,000 tonnes (t) in Q4FY’25 and by 150,000 t in FY’25.
  
• Plan to pursue legal remedies in BPSL case: JSW is of the opinion that it implemented the resolution plan for Bhushan Power and Steel (BPSL) lawfully and successfully revived the company. However, the Supreme Court’s 2 May 2025 judgment rejected the plan and ordered refunds. Citing a prior 2020 order, the company believes it has strong legal grounds and will seek appropriate remedies.
• Improving prices, lower costs expected to boost Q1FY’26 outlook: Domestic steel prices were low in December but are higher since March, which is expected to boost Q1FY’26 realisations. Overall costs fell, with a $15/t drop in coking coal and lower iron ore expenses following the Jajang mine shutdown. Additionally, coking coal costs are expected to decline further in Q1FY’26.

Outlook

The company expects strong market growth in India, with demand projected to increase by 8-10% in FY’26.