Tag: JSWSteel

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JSW Steel plans ₹14,000 crore fundraising

JSW Steel has approved plans to raise ₹14,000 crore and cleared the merger of BMM Ispat as part of its expansion strategy.

The company’s board approved fundraising through a combination of debentures, equity shares and convertible securities. JSW Steel said the funds will support future expansion, business growth and operational requirements.

The board also approved the merger of BMM Ispat with JSW Steel. Industry experts believe the merger will strengthen the company’s long steel products business and improve production efficiency.

BMM Ispat operates a steel manufacturing plant in Karnataka with a production capacity of around one million tonnes annually. The facility is located near JSW Steel’s Vijayanagar plant, which is expected to help reduce transportation costs and improve operations after the merger.

Company officials said the acquisition would also provide access to additional land for future expansion projects. Analysts noted that large steel companies are increasing investments as domestic demand for steel remains strong due to infrastructure projects, housing development and industrial growth.

The fundraising plan comes at a time when JSW Steel has reported strong financial performance and rising production capacity. Market experts said the latest decisions reflect the company’s focus on strengthening its position in India’s growing steel sector.

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JSW Steel Q3 net profit rises 2.4x to Rs 2,410 cr

JSW Steel Ltd reported a strong increase in its consolidated net profit for the third quarter of the 2025–26 fiscal year, surpassing market expectations. The company posted a net profit of Rs 2,410 crore for the quarter ending December 31, 2025, more than double the Rs 719 crore recorded in the same period last year. The growth was driven by higher steel sales volumes and the recognition of one-time tax benefits.

Revenue from operations rose to approximately Rs 45,200–45,990 crore, up around 10–11 percent year‑on‑year. Saleable steel sales increased roughly 14 percent to 7.64 million tonnes, while crude steel production grew about 6–7 percent. Strong domestic demand from construction, automotive, and other sectors supported this growth.

The profit surge was further aided by the recognition of deferred tax assets of about Rs 1,439 crore, linked to unabsorbed depreciation in Bhushan Power and Steel Ltd. This accounting adjustment significantly boosted reported earnings for the quarter.

On the operational side, consolidated EBITDA rose about 20 percent year‑on‑year to Rs 6,496 crore. Despite the increase, margins narrowed slightly compared with the previous quarter, reflecting pressure on steel prices and rising input costs.

Looking ahead, JSW Steel plans continued investment in capacity expansion, including a major greenfield project in Odisha and potential growth at its Dolvi plant in Maharashtra.

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Japan’s JFE Steel, JSW Steel form ₹15,750 cr Bhushan Power JV

Japanese steel major JFE Steel is investing ₹15,750 crore to acquire a 50% stake in a new joint venture with JSW Steel, focused on running the Bhushan Power & Steel Ltd. (BPSL) business. The deal marks a significant step for both companies in strengthening India’s steel sector while unlocking growth potential for JSW.

Under the agreement, BPSL’s integrated steel plant in Odisha, along with its associated iron‑ore mine, will be transferred to the JV through a “slump sale.” The total valuation of these assets is estimated at around ₹24,483 crore, with JFE’s investment planned in two tranches.

JSW Steel acquired BPSL in 2021 when the company was distressed. Since then, the plant’s crude steel capacity has expanded from 2.75 million tonnes per year to 4.5 million tonnes, supporting roughly 25,000 jobs. With the new JV, the aim is to further increase production to 10 million tonnes per year by 2030, combining JSW’s operational expertise with JFE’s technical strengths in steelmaking.

For JSW, the partnership is also strategically important. The cash inflow and the transfer of debt will help de-leverage its balance sheet, providing financial flexibility for future growth while sharing risk with a global partner. Analysts view the move as a smart way to unlock value and strengthen JSW’s position in the market.

The collaboration builds on a long-standing alliance between JSW and JFE that began in 2009. As India’s steel demand grows, the partnership positions both companies to capitalize on opportunities while ensuring the BPSL plant achieves its full potential.

In the coming months, attention will be on the completion of the asset transfer and the gradual ramp-up of production at BPSL. The JV is expected to play a key role in shaping the future of steel manufacturing in India, balancing expansion with financial prudence and long-term strategic growth.

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