Jindal Steel is entering a new operational phase after completing one of its largest expansion programmes, with the company now shifting focus towards sweating assets and improving returns from newly commissioned capacities.
Jindal Steel CEO Gautam Malhotra told analysts that the company plans to allocate between ₹7,500 crore and₹10,000 crore towards capital expansion (sustenance capex) programmes, even as the bulk of its large-scale expansion cycle nears completion.
The company’s steelmaking capacity has expanded significantly from 9.6 million tonnes per annum to 15.6 million tonnes per annum during FY26, driven largely by the ramp-up at its Angul facility.
Angul emerges as growth driver
The Angul complex has become the centrepiece of Jindal Steel’s growth strategy, with several large projects either commissioned or nearing completion.
The company operationalised Blast Furnace-2 with a capacity of 4.6 million tonnes, while construction of the 2 million tonne DRI2 unit is underway. At the steelmaking level, BOF2 and BOF3 have added another 6 million tonnes of capacity.
Jindal Steel also commissioned a 1,050 MW Shree Bhoomi Power Plant comprising two 525 MW modules, strengthening energy integration for the expanding operations.
The company said the coal pipe conveyor belt linking the Utkal C thermal coal mine and Angul is operational, while the Barbil-to-Angul slurry pipeline project is nearing commissioning and is expected to become operational during the first quarter of FY27.
Value-added products in focus
Beyond scale expansion, the company is also sharpening its focus on value-added steel products aimed at India’s infrastructure and construction sectors.
A newly commissioned cold rolling complex with 1.2 million tonnes per annum capacity is expected to enhance product offerings while supporting margin expansion through higher-value products.
The company said operational efficiencies across Angul, Raigarh and Patratu remain a priority as the expanded capacities gradually stabilise.
Volume guidance signals confidence
Jindal Steel has guided for FY27 crude steel production of 11 million to 11.5 million tonnes and sales volumes of 10.5 million to 11 million tonnes, indicating confidence in domestic demand conditions and capacity utilisation improvements.
The company expects India’s steel demand to remain resilient, backed by continued infrastructure spending and construction activity.
Steel prices have also shown signs of recovery in recent months, although the company flagged volatility in coking coal prices as a near-term risk