JSW Steel’s Crude Steel Production Rises 5% to 7.27 Million Tonnes in Q2 FY2027

India’s leading integrated steel manufacturer, JSW Steel Limited, reported consolidated crude steel production of 7.27 million tonnes (MT) during the July–September quarter of FY2026–27, registering a 5% increase over the corresponding period of the previous financial year. Production also increased by 10% compared with the preceding quarter, reflecting improving operations across the company’s manufacturing facilities.

In a regulatory disclosure dated 8 October 2026, JSW Steel reported that its Indian operations contributed 7.07 MT during the quarter, while its Ohio facility in the United States produced another 0.20 MT. Capacity utilisation across Indian operations averaged 88% and improved to approximately 90% in September as the upgraded Blast Furnace 3 at Vijayanagar progressively increased production.

The company also reported consolidated crude steel production of 13.86 MT during the first half of FY2027, representing 4% year-on-year growth. The figures highlight the contribution of JSW Steel’s domestic manufacturing operations as the company continues upgrading production infrastructure and expanding its steelmaking capabilities.

JSW Steel Records 10% Sequential Growth in Crude Steel Production

JSW Steel’s consolidated crude steel output increased from 6.59 MT in the April–June quarter to 7.27 MT during July–September 2026. The improvement represents additional quarterly production of approximately 680,000 tonnes.

Compared with the July–September quarter of FY2026, when consolidated output stood at 6.95 MT, production increased by approximately 320,000 tonnes.

The company’s Indian operations accounted for most of this growth. Domestic production increased from 6.35 MT in the preceding quarter to 7.07 MT, representing an 11% sequential improvement. On a year-on-year basis, Indian production increased by 5% from 6.71 MT.

JSW Steel’s US operations recorded comparatively lower output. Production at the Ohio facility stood at 0.20 MT, compared with 0.24 MT in both the preceding quarter and the corresponding quarter of FY2026.

The production figures demonstrate that the improvement in consolidated output came primarily from the company’s Indian steelmaking facilities.

Vijayanagar Blast Furnace Upgrade Supports Higher Capacity Utilisation

A significant contributor to JSW Steel’s improving operational performance is the progressive ramp-up of Blast Furnace 3 at its Vijayanagar steel plant in Karnataka.

The blast furnace had undergone a planned shutdown for capacity upgradation. Following completion of the work, JSW Steel began progressively increasing production to bring the upgraded facility towards its intended operating level.

During the July–September quarter, the company’s Indian operations recorded average capacity utilisation of 88%. This improved to approximately 90% in September, indicating that manufacturing operations were operating closer to available production capacity.

Blast furnaces form a central part of integrated steelmaking. They convert iron-bearing raw materials into molten iron, which undergoes further processing to produce crude steel.

Upgrading a blast furnace can increase its production capacity, improve operational efficiency and support more consistent manufacturing performance. The benefits depend on equipment configuration, raw material availability, operating conditions and the integration of downstream steelmaking facilities.

The Vijayanagar ramp-up is particularly important because it strengthens production from one of JSW Steel’s principal manufacturing centres.

Vijayanagar Remains Central to JSW Steel’s Manufacturing Expansion

Located in Karnataka’s Ballari district, JSW Steel’s Vijayanagar complex is among India’s largest integrated steel manufacturing facilities.

The plant plays a major role in the company’s production of flat steel products used across automotive manufacturing, construction, engineering, consumer appliances and industrial applications.

The integrated facility combines ironmaking, steelmaking, casting and rolling operations within a large manufacturing complex. This arrangement allows the company to process raw materials into finished steel products through interconnected production systems.

JSW Steel has undertaken several expansion and modernisation projects at Vijayanagar, including additional steelmaking infrastructure and improvements to existing equipment.

Its earlier investment programme included the development of a 5-million-tonne-per-annum expansion and the upgradation of Blast Furnace 3. The latest production figures reflect the ongoing recovery and expansion of output following these developments.

Higher utilisation of the upgraded equipment can help the company make more effective use of its existing manufacturing infrastructure while supporting the supply of steel to domestic industries.

First-Half Steel Production Reaches 13.86 Million Tonnes

JSW Steel’s production performance during the first six months of FY2027 provides a broader picture of its manufacturing operations.

Consolidated crude steel production reached 13.86 MT during April–September 2026, compared with 13.32 MT during the corresponding period of FY2026.

The increase of approximately 540,000 tonnes represents year-on-year growth of 4%.

Indian operations produced 13.41 MT during the six-month period, compared with approximately 12.84 MT a year earlier. This represents growth of around 4%.

The company’s Ohio facility contributed 0.45 MT during the first half, compared with 0.48 MT during the corresponding period of the previous financial year.

The figures indicate that domestic production growth more than offset the reduction in output from the company’s US operations.

JSW Steel also clarified that its previous-year production figures had been adjusted to exclude the steel business undertaking of Bhushan Power and Steel Limited. That business was transferred to JSW-JFE Steel Limited in March 2026, making the adjustment necessary for a comparable assessment of production growth.

JSW Steel Expands Its Domestic Manufacturing Network

JSW Steel’s longer-term manufacturing strategy includes expanding capacity at existing facilities and developing new steelmaking projects.

The company operates major integrated steel production facilities in Karnataka and Maharashtra, alongside additional manufacturing and processing units in India.

In July 2026, JSW Steel announced the commencement of development activities for its Rayalaseema steel project in Andhra Pradesh. The proposed facility is being developed through JSW Rayalaseema Steel Limited, a wholly owned subsidiary.

The project envisages a 2-million-tonne steel plant developed in phases, using electric arc furnace technology.

Unlike conventional integrated steelmaking based primarily on blast furnaces and basic oxygen furnaces, electric arc furnaces use electrical energy to melt suitable metallic inputs, including scrap and direct reduced iron.

The technology provides an alternative steelmaking route that can support greater flexibility in raw material utilisation. Its environmental performance depends on the source of electricity and the metallic inputs used.

The proposed Rayalaseema development forms part of JSW Steel’s wider manufacturing expansion and diversification strategy.

Growing Steel Production Supports India’s Industrial Supply Chains

Steel remains one of the most important materials used in industrial development. Its applications extend across infrastructure construction, transport equipment, manufacturing machinery, energy projects and consumer products.

India’s expanding railway network, highways, bridges, industrial facilities and urban infrastructure require substantial quantities of structural and finished steel products.

Automotive manufacturers depend on specialised steel grades for vehicle bodies, chassis components and structural applications. Engineering industries require steel products with specific mechanical properties, dimensional tolerances and surface characteristics.

An increase in domestic steel production can help manufacturers meet these requirements through local supply chains.

JSW Steel’s expanding operations contribute to this industrial ecosystem through the production of flat and long steel products serving different sectors.

However, crude steel production is not identical to finished steel sales. The conversion of crude steel into marketable products involves further processing, and commercial performance also depends on demand, product mix and prevailing steel prices.

Manufacturing Efficiency Becomes Increasingly Important

Expansion in steel production requires more than the installation of new equipment. Steelmakers must also improve the efficiency of existing facilities and maintain reliable operations across the production chain.

Integrated steelmaking depends on coordinated supplies of iron ore, coal, limestone, energy and other inputs. Interruptions in raw material movement or equipment availability can affect overall production.

Blast furnace upgrades are therefore important because they can improve the effectiveness of an existing manufacturing asset without requiring an entirely new integrated steel plant.

At Vijayanagar, the gradual increase in utilisation following the Blast Furnace 3 upgrade illustrates the importance of commissioning and stabilisation after major industrial modifications.

As the upgraded facility approaches its intended production level, it can contribute additional output to JSW Steel’s domestic manufacturing operations.

The company’s subsequent production updates will provide further evidence of how effectively the upgraded infrastructure is being utilised.

JSW Steel’s Production Growth Reflects India’s Expanding Steelmaking Capacity

JSW Steel’s second-quarter performance reflects the combined effect of domestic production growth and improving utilisation at its upgraded Vijayanagar facility.

The increase to 7.27 MT of consolidated crude steel production, together with first-half output of 13.86 MT, demonstrates the company’s continuing contribution to India’s steel manufacturing sector.

Further improvements will depend on the sustained performance of upgraded equipment, the availability of raw materials and the ability of downstream facilities to process additional crude steel production.

The company’s ongoing investments in existing plants and new manufacturing projects also provide a foundation for future capacity expansion.

JSW Steel’s 5% year-on-year production growth in Q2 FY2027 marks another step in strengthening India’s domestic steelmaking capabilities. With Vijayanagar’s upgraded blast furnace progressively increasing output and new projects under development, the company continues to expand the industrial capacity needed to support India’s infrastructure and manufacturing growth.

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References

1. JSW Steel Limited — Consolidated Crude Steel Production for Q2 FY2027. Corporate announcement filed with BSE and NSE, 8 October 2026.
   https://www.bseindia.com/corporates/ann.html
2. JSW Steel Limited — Corporate Announcements and Press Releases. Official investor relations portal.
   https://www.jswsteel.in/investors/corporate-announcement-and-press-release
3. JSW Steel Q2 FY2027 Crude Steel Output Rises 5% to 7.27 MT. ETManufacturing, 8 October 2026.
   https://manufacturing.economictimes.indiatimes.com/news/industry/jsw-steel-q2-fy27-crude-steel-output-rises-5-to-7-27-mt/134789774
4. JSW Steel Q2 Update: Production Rises 5% to 7.27 MT; India Capacity Utilisation at 88%. CNBC-TV18, 8 October 2026.
   https://www.tradingview.com/news/cnbctv%3Aab115f56e094b%3A0/
5. JSW Steel Begins Work on Rayalaseema Steel Project in Andhra Pradesh. Official JSW Group press release, 3 July 2026.
   https://www.jsw.in/newsroom/press-releases/jsw-steel-begins-work-on-rayalaseema-steel-project-in-andhra-pradesh/

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