JSW Steel has approved ₹29,000 crore in new projects as it plans to expand production capacity to nearly 65 million tonnes by 2031. Chief executive Jayant Acharya said strong demand and a healthier balance sheet support the company’s investment plans.

Key Takeaways

  • The company reported record quarterly capital expenditure of ₹6,266 crore in the September 2026 quarter.
  • Acharya said Indian steel consumption grew 7.5% in the first half, with demand strengthening in the second quarter.
  • Debt repayments helped reduce JSW Steel’s weighted average interest rate to 6.09%.

JSW Steel expansion plans

The newly approved projects are intended to add production volume, improve raw material security and expand the range of value-added products, Acharya said. The capacity target remains a plan, not completed production.

JSW Steel currently has 38 million tonnes of capacity, including 32 million tonnes in India. Acharya said the company’s scale is generating enough cash flow to manage its capital expenditure cycle.

Demand supported September-quarter sales

Acharya said steel demand in India picked up in the second quarter after a cautious first quarter. JSW Steel added to sales by drawing down between 200,000 and 210,000 tonnes of inventory during the September quarter, a move he said was unusual for that period.

He attributed a recovery in steel prices to demand and said he was confident Indian supply would not outstrip demand over the next few years. That assessment is management’s outlook, not a confirmed market outcome.

Debt repayments lower financing costs

Quarterly capital expenditure of ₹6,266 crore was funded largely from internal accruals, Acharya said. The company also repaid costly debt over two quarters using funds from the Bhushan deal and free cash flow from existing operations.

Its weighted average interest rate fell to 6.09% from 6.16% in the preceding quarter and 6.67% in the September quarter a year earlier. Acharya also said Moody’s had upgraded the company to investment grade.

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