- Iron ore pellet capacity scaled up from 1.5 mnt to 3 mnt
- DRI production surges 12% y-o-y to record high in FY’26
Jayaswal Neco Industries Limited (JNIL) has announced the establishment of a new 1.50 million tonnes per annum (mnt/year) straight-grate pellet plant, as per a Board of Directors meeting held on 24 April 2026. This facility will be developed within its integrated steel plant at Siltara in Raipur, along with a modern raw material handling system and associated infrastructure. The expansion is also crucial for the use of iron ore from its own captive mines. However, the project is subject to existing lenders’ approval.
Expansion to meet growing demand
The company currently operates a 1.5 mnt/year pellet plant, which is already running at approximately 90% capacity utilisation. The addition of a new pellet plant of equal capacity will double its production capability to 3 mnt/year. This expansion comes at a time when demand for high-quality pellets continues to rise, driven by increased steel production and efficiency requirements.
The proposed project is expected to be completed within a 24-month construction timeline. Once operational, it will significantly enhance the company’s ability to meet both internal consumption and external market demand, while also improving operational efficiencies.
Strong operational performance in FY’26
JNIL demonstrated robust operational performance in FY’26, achieving record production levels across multiple segments. The pellet plant recorded its highest-ever annual production of 1.37 mnt with a 5% y-o-y hike, surpassing the previous best of 1.3 mnt in FY’25.
Pellet sales were recorded at 853,347 t in FY’26, with a fall of 6% y-o-y against 909,980 t in FY’25. Sales dropped due to increased DRI production in JNIL’s captive sponge iron plant.
Similarly, direct reduced iron (DRI) production reached a record 301,136 t in FY’26, marking a 12% growth y-o-y against 269,999 t. DRI sales were recorded at 204,430 t, a 3% y-o-y increase in FY’26 against 196,098 t in FY’25.
JNIL’s liquid steel production in FY’26 increased to over 0.74 mnt compared with 0.54 mnt in FY’25. Production of BF-based hot metal also increased from 0.57 mnt to over 0.85 mnt, while rolled steel production stood at over 0.7 mnt.
Performance snapshot of Q4FY’26
In Q4FY’26, pellet production stood at 308,449 t, down by 13% and N% compared to 354,493 t in Q3FY’26 and 337,820 t in Q4FY’25, respectively. Sponge iron (DRI) production for the quarter reached 65,200 t, reflecting steady performance.
On the sales front, pellet sales in Q4FY’26 were recorded at 212,037 t, while sponge iron sales stood at 41,386 t. These figures indicate stable demand and efficient sales execution.
Meanwhile, operational efficiency improvements are further reflected in extended campaign life figures. The pellet plant achieved the highest campaign life of 459 days, while the DRI plants recorded campaign lives of 443 days and 338 days, respectively. These metrics indicate enhanced plant reliability, reduced downtime, and better cost management.
Mining operations deliver exceptional growth
The company’s mining operations also delivered remarkable performance. The Chhotedongar Mines achieved an annual record production of 2.72 mnt in FY’26, representing a substantial 32% increase over the previous year. Meanwhile, the Metabodeli Mines reported a strong output of 999,848 t in this financial year. The Chhotedongar and Metabodeli mines have an annual production capacity of 6 mnt and 1 mnt, respectively.
In Q4FY’26, iron ore production stood at 292,647 t, up by 10% against 266,461 t in Q3FY’26. Meanwhile, iron ore dispatches recorded 362,853 t in Q4FY’26, up by 39% against 260,897 t in the previous quarter.
Financial performance
- EBIDTA rises y-o-y: The company’s consolidated EBITDA was recorded at INR 1,341 crore in FY’26, a 19% hike as against INR 952 crore in the last financial year.
- PAT increases sharply y-o-y: JNIL’s profit after tax (PAT) sharply increased by three times to INR 463 crore in FY’26 from INR 113 crore in FY’25.
JNIL moves to add captive solar power capacity
On 25 April, JNIL also informed the exchanges of its Non-binding Term Sheet with Waaree Group entity for investing in a proposed Special Purpose Vehicle(s) for setting up solar power project(s) for supplying to its steel plant division and the Chhotedongar iron ore mines of the company.
This investment is intended to enable the company to procure solar energy on a captive basis, in compliance with the provisions of the Electricity Rules 2005 under the Group Captive Multiple Consumers Structure.
Strategic outlook
The upcoming pellet plant expansion aligns with Jayaswal Neco Industries’ long-term growth strategy of scaling up production capacity while maintaining operational efficiency. By integrating advanced technology such as the straight-grate process and upgrading material handling systems, the company aims to enhance productivity and reduce operational costs.
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