Jindal Steel has officially announced plans to significantly expand its structural steel manufacturing capabilities at the Raigarh facility, targeting a doubling of capacity to 2.4 million tonnes per annum (MTPA) by mid-2028. The company disclosed this strategic expansion through a press release on December 29, 2025, under Regulation 30 of SEBI Listing Regulations.

Capacity Expansion Details

The expansion project will increase structural steel production capacity from the current 1.2 MTPA to 2.4 MTPA, representing a complete doubling of manufacturing capability. The following table outlines the key parameters of this expansion:

Advanced Manufacturing Capabilities

The expansion will enable Jindal Steel to manufacture India's largest parallel flange sections, significantly enhancing domestic production capabilities. The company will commission a new dedicated structural steel mill alongside advanced upstream and downstream technology upgrades.

Strategic Market Impact

The expansion addresses growing demand from multiple sectors including infrastructure, refinery, power, renewable energy, transmission, and high-rise construction projects. Subrat Panda, Head – Structures & CSB at Jindal Steel, emphasized that "doubling our structural steel capacity at Raigarh is a strategic step towards building long-term domestic capability for large and complex projects."

The enhanced capabilities will significantly reduce India's reliance on imported heavy structural steel sections while supporting faster project execution and improved design efficiency. The company continues to promote high-strength structural steel usage, supporting efficient construction and optimized material usage across steel-intensive sectors.

Investment and Infrastructure

Jindal Steel operates with an investment footprint exceeding USD 12 billion, running state-of-the-art facilities in Angul, Raigarh, and Patratu. The company maintains strategic operations across India and Africa, leveraging its mine-to-metal model and captive resources to deliver high-performance steel solutions through advanced manufacturing capabilities and global distribution networks.

Jindal steel and Power Ltd. shares are expected to be in focus during Friday's trading session following a revised analyst note from Kotak Securities that highlights both near-term challenges and long-term opportunities for the steel manufacturer.

Target Price Revision Details

Kotak Securities has adjusted its financial outlook for JSPL, reducing the target price while maintaining confidence in the company's fundamental prospects. The key changes include:

Steel Sector Challenges

The brokerage firm's decision stems from immediate market headwinds affecting the steel industry. Steel prices have particularly softened during the third quarter of FY26, creating a challenging operating environment for steel manufacturers. This pricing pressure is expected to impact JSPL's financial performance in multiple ways:

• Earnings Impact: Continued pressure on steel prices may weigh heavily on the company's short-term earnings
• Margin Compression: The emerging pricing environment could put additional pressure on JSPL's profit margins
• Revenue Concerns: Softer commodity prices may affect overall revenue generation in the near term

Long-Term Growth Drivers

Despite near-term headwinds, Kotak Securities remains optimistic about JSPL's long-term prospects, citing several growth catalysts:

Capacity Expansion Plans

The company has multiple capacity additions lined up that could serve as significant growth drivers. These expansions are expected to:

Market Performance and Outlook

JSPL's stock performance reflects the mixed sentiment surrounding the steel sector. The company has delivered modest returns to investors, with shares generating approximately 6% returns on a year-to-date basis. The revised target price of ₹1,150.00 suggests Kotak Securities sees potential upside of around 15% from current levels.

Upcoming Catalysts

Investors will be closely monitoring JSPL's third-quarter earnings results to assess how the ongoing pricing pressure in the steel sector has affected the company's financial performance. The earnings report will provide crucial insights into the company's ability to navigate current market challenges while positioning for future growth through its capacity expansion initiatives.