Jindal Steel Doubles Angul Capacity to 12 MTPA in 2026

Jindal Steel Completes Major Expansion

Jindal Steel announced on Tuesday the successful completion of its 6 million tonnes per annum (MTPA) expansion project at its integrated steel complex in Angul, Odisha. This development doubles the plant's crude steel capacity from 6 MTPA to 12 MTPA, positioning the facility as one of India's largest single-location integrated steel plants. The expansion significantly enhances the company's production capabilities and strengthens its foothold in the domestic market.

Commissioning of New Infrastructure

The milestone was achieved with the commissioning of the third Basic Oxygen Furnace (BOF-3), which has a capacity of 3 MTPA. The project also involved the operationalisation of BOF-2 and other critical upstream and downstream infrastructure. This includes new coke ovens and a cold-rolling mill (CRM) complex, which are essential for seamless integration and a swift ramp-up of production. This integrated approach ensures that the entire production chain is optimised for the increased capacity, from raw material processing to finished steel products.

Impact on Total Production Capacity

Following the completion of the Angul expansion, Jindal Steel's total crude steel capacity has increased to 15.6 MTPA. This figure combines the newly expanded 12 MTPA capacity at Angul with the existing 3.6 MTPA capacity at its facility in Raigarh, Chhattisgarh. This substantial increase in overall capacity allows the company to cater to a larger segment of the market and meet the growing demand for steel in the country.

Strategic and Financial Implications

The company stated that the expanded capacity is expected to drive higher production volumes and improve utilisation levels. This will contribute directly to revenue growth and provide significant operating leverage. By increasing its scale and integration, Jindal Steel aims to optimise production costs, which is likely to lead to improved margins and enhanced profitability. While the company did not disclose specific financial details for this project, it is part of a broader capital expenditure plan. As of December 2025, the company had invested ₹32,925 crore out of a total planned capex of ₹47,043 crore.

Alignment with National Objectives

This expansion is strategically aligned with India's national goals, particularly the 'Atmanirbhar Bharat' initiative, which promotes self-reliance. By boosting domestic steel production, Jindal Steel is contributing to reducing the country's dependence on imports and strengthening its industrial base. The increased output will support key sectors such as infrastructure, construction, railways, and automotive, which are critical drivers of India's economic growth.

Market Context and Industry Outlook

The expansion comes at a time of robust demand in the Indian steel market, which is projected to grow by 8-9% in the fiscal year 2025-2026. This growth is fueled by government spending on infrastructure and the expansion of the manufacturing sector. However, the industry also faces challenges, including moderating global steel prices and rising costs of coking coal. Despite these headwinds, the outlook for the domestic steel sector remains positive, supported by sustained demand and protective government policies.

Company Performance and Forward Look

Jindal Steel's recent financial performance in Q3FY26 was impacted by elevated costs and one-off expenses related to the new capacities. However, the management expects margins to improve from Q4FY26 onwards as capacity utilisation increases and the new facilities contribute to cost efficiencies. With the Angul expansion now complete, Jindal Steel is well-positioned to leverage its enhanced capacity to capture a larger market share and drive future growth, solidifying its position as a leading player in the Indian steel industry.