JSW Steel Limited reported consolidated crude steel production of 7.48 million tonnes for Q3 FY26, marking a 6% year-on-year increase from 7.03 million tonnes produced in Q3 FY25. The quarterly performance demonstrates the company's operational resilience despite ongoing capacity enhancement activities at its flagship Vijayanagar facility.

Quarterly Production Performance

The Q3 FY26 production figures reflect the impact of planned infrastructure upgrades, with Blast Furnace 3 (BF3) at Vijayanagar undergoing shutdown for capacity upgradation since end of September 2025. The facility is expected to be commissioned by end of Q4 FY26, temporarily affecting capacity utilisation at Indian operations.

*Including trial run production of 0.12 million tonnes

Capacity Utilisation and Operational Efficiency

Despite the BF3 shutdown, JSW Steel maintained strong operational performance with capacity utilisation for Indian operations reaching approximately 93% when excluding BF3 capacity. Including the temporarily offline BF3 capacity, the utilisation stood at 85% for the quarter. This demonstrates the company's ability to optimise production across its remaining facilities while managing planned maintenance and upgradation activities.

Nine-Month Performance Highlights

The company's nine-month performance for FY26 showcased robust growth momentum across all operational segments.

*Including trial run production of 0.12 million tonnes

Strategic Infrastructure Development

The ongoing BF3 upgradation at Vijayanagar represents JSW Steel's commitment to expanding production capacity and enhancing operational efficiency. The Vijayanagar facility currently operates as India's largest single-location steel-producing facility with a capacity of 17.50 million tonnes per annum. The planned upgradation is expected to further strengthen the company's production capabilities upon completion.

Operational Overview

JSW Steel operates with a consolidated crude steel capacity of 35.70 million tonnes per annum, including 1.50 million tonnes in the United States. The domestic crude steel capacity stands at 34.20 million tonnes per annum. The company has outlined plans for its next phase of growth, targeting consolidated capacity expansion to 43.40 million tonnes per annum over the next three years, reinforcing its position as one of India's leading integrated steel companies.

JSW Steel has received credit rating assignments from Japan Credit Rating Agency (JCR), with the Japanese rating agency assigning A- ratings with stable outlook for both foreign and local currency long-term issuer categories.

Credit Rating Details

The rating assignment covers comprehensive evaluation of the steel manufacturer's creditworthiness across different currency exposures:

Business Position and Market Standing

JCR's rationale emphasizes JSW Steel's strong market position as one of India's largest steel manufacturers. The company operates six steel plants domestically and one facility in the United States, ranking among the world's top crude steel producers. JSW has established large-scale steel plants near iron ore mines, creating an integrated and efficient production system from raw material procurement to steel making and processing.

The company maintains significant market presence with approximately 17.00% domestic market share in capacity terms. JSW supplies steel across diverse industries including infrastructure, automotive, and construction materials through its extensive distribution network of approximately 2,300 JSW Shoppe retail outlets nationwide.

Strategic Partnerships and Expansion

JSW's strategic collaborations have strengthened its market position significantly. In 2009, the company partnered with JFE Holdings, which made an approximately 15.00% equity investment, making JSW an equity-method affiliate. This collaboration deepened with establishment of a joint venture to manufacture grain-oriented electrical steel sheets.

Additionally, JSW entered into non-binding heads of agreement with Korea's POSCO HOLDINGS to establish a joint venture for steel manufacturing, demonstrating continued expansion through strategic partnerships.

Financial Performance and Outlook

JCR noted that JSW experienced decreased total income and profits despite increased steel production and sales volumes. The decline was attributed to falling sales prices, which had significant negative impact despite downward trending raw material prices.

However, a subsequent period showed recovery indicators:

The rating agency highlighted JSW's improved plant operating rates and lower raw material costs as key drivers of profitability recovery. The company's equity ratio has strengthened to 33.00% as of the end of a recent fiscal year, compared to mid-20% range approximately a decade ago, indicating steady financial structure improvement.

Capacity Expansion and Investment Plans

JSW continues pursuing capacity expansion, targeting production capacity of 51.50 million tonnes per annum by FY2031. The company operates 23 iron ore mines with 12 currently operational, enabling internal raw material procurement. This vertical integration supports efficient raw material transportation through pipe conveyor and railways systems, underpinning price competitiveness.

JCR expects JSW to maintain disciplined financial management given its strong track performance record, competitive domestic position, favorable business environment, and strategic partnerships despite ongoing investments.