German Green Steel channels 90% of billets into TMT bars

German Green Steel and Power Limited channels most internally produced steel intermediates into finished TMT bars. In Fiscal 2026, 72.89% of sponge iron and 90.44% of MS billets were consumed captively, while TMT bars generated Rs 1,321.9623 crore, or 78.74%, of revenue from operations.

How does German Green Steel’s integrated TMT chain work?

German Green Steel makes sponge iron, converts it into MS billets and rolls billets into TMT bars, selling surplus sponge iron and billets in the open market after captive requirements are met. Sponge iron is direct reduced iron made from iron ore, non-coking coal and dolomite in a direct reduced iron, or DRI, plant. The Samakhiyali Facility makes sponge iron, MS billets and TMT bars, while the Viramgam Facility makes MS billets and TMT bars.

German Green Steel produced 62,837 metric tonnes of sponge iron, 283,654 metric tonnes of MS billets and 265,097 metric tonnes of TMT bars in Fiscal 2026. MS billets are semi-finished steel products used for rolling bars and other steel products. The company says its continuous process permits billets either to be sold as final output or rolled into TMT bars, so TMT production is included within billet production figures and the two volumes should not be added as separate final output.

German Green Steel uses thermex quenching technology at the rolling stage to make thermo-mechanically treated, or TMT, bars. The process uses controlled quenching and self-tempering, which the company says improves yield strength, ductility, bendability and weldability. Its Samakhiyali testing laboratory is accredited by the National Accreditation Board for Testing and Calibration Laboratories, and its products are required to comply with Bureau of Indian Standards requirements.

How much intermediate output does German Green Steel use internally?

German Green Steel used most of its Fiscal 2026 sponge iron and MS billet output inside its manufacturing chain, although sponge-iron captive consumption declined over the three reported years. Captive consumption means production used by the company rather than sold to third parties. This internal flow links the DRI plant, steel melting shop, continuous casting equipment and TMT rolling operations.

German Green Steel sold 17,037.01 metric tonnes of sponge iron externally in Fiscal 2026, compared with 12,061.87 metric tonnes in Fiscal 2025. Captive sponge-iron consumption fell by 7,692.13 metric tonnes year on year, while the internally used share of billet production remained close to 90%. External billet sales were 27,116 metric tonnes in Fiscal 2026, compared with 28,083.86 metric tonnes in Fiscal 2025.

German Green Steel’s chain depends on purchases of scrap, iron ore, coal, silico manganese and dolomite in addition to its internally produced intermediates. Materials purchased were Rs 1,304.1695 crore in Fiscal 2026, equal to 82.77% of total expenses. The company generally buys through purchase orders rather than long-term supply contracts, and states that coal prices are linked to international prices, while material-price movements are typically passed through to customers.

What revenue does German Green Steel earn from TMT bars and surplus products?

German Green Steel earns most operating revenue from TMT bars, rather than from the surplus sponge iron and MS billets sold externally. TMT-bar revenue rose to Rs 1,321.9623 crore in Fiscal 2026 from Rs 1,002.3406 crore in Fiscal 2025. Its share of revenue from operations increased by 12.25 percentage points to 78.74% over that period.

German Green Steel’s TMT-bar revenue increased by Rs 319.6217 crore in Fiscal 2026, while MS-billet revenue declined by Rs 10.0706 crore. The product mix is consistent with 256,538 metric tonnes of billets being retained for TMT production. The “Others” category mainly comprises by-products and miscellaneous items including MS scrap, mill scale, black fly ash and WISS roll.

German Green Steel sells TMT bars in Fe500, Fe500D, Fe550 and corrosion-resistant steel, or CRS, grades, in sizes from 8 millimetres to 40 millimetres. It has also entered cut-and-bend reinforcement and epoxy-coated TMT bars. These value-added products do not have separately disclosed Fiscal 2026 revenue lines, so their contribution cannot be quantified from the product-revenue disclosure.

How is German Green Steel changing its power sourcing?

German Green Steel and its material subsidiary generated 66.98% of combined electricity consumption from captive and hybrid facilities in Fiscal 2026, compared with 38.32% in Fiscal 2024. Captive generation is electricity generated for a producer’s own operations. Hybrid generation combines wind and solar power, while waste heat recovery uses heat from sponge-iron kiln flue gases to generate steam and electricity.

Captive power provided 50.34% of combined Fiscal 2026 consumption and hybrid plants supplied 16.64%, leaving 33.02% purchased from distribution utilities. In Fiscal 2024, purchased electricity represented 61.68% of combined consumption. Total combined electricity consumption increased to 25,40,70,156 kilowatt-hours in Fiscal 2026 from 23,44,44,000 kilowatt-hours in Fiscal 2024, meaning the supply mix changed even as total use increased.

German Green Steel’s Samakhiyali Facility had 16.0 megawatts of coal-based captive capacity and 4.0 megawatts of waste-heat-recovery capacity as of August 31, 2026. Commissioned hybrid capacity included 8.1 megawatts of wind and 6.0 megawatts direct-current solar at Bhavnagar, plus 9.0 megawatts of wind and 7.2 megawatts direct-current solar at Bharuch. A further Bharuch plant with 5.4 megawatts of wind and 3.6 megawatts direct-current solar was yet to be commissioned.

Conclusion

German Green Steel’s reported Fiscal 2026 model centres on using internally made intermediates to produce TMT bars, which accounted for 78.74% of revenue from operations. The 90.44% billet captive-consumption rate shows that MS billets principally functioned as an input to the finished-bar stage, while external sponge-iron and billet sales provided outlets for surplus production.

The next operating development to watch is the disclosed Samakhiyali expansion plan: sponge-iron capacity is proposed to rise from 66,000 metric tonnes per annum to about 148,500 metric tonnes per annum, MS-billet capacity from 214,500 to 412,500 metric tonnes per annum, and TMT-bar capacity from 181,500 to 346,500 metric tonnes per annum. Commissioning of the remaining 9.0-megawatt Bharuch hybrid plant is also a disclosed pending step that could further change the proportion of electricity bought from utilities.