Synopsis: A comparison of JSW Steel and Tata Steel after Q3 results, where JSW reported Rs 45,991 crore revenue while Tata Steel posted Rs 57,002 crore, highlighting operational performance, expansion plans, and outlook for the next steel cycle.
This article compares the performance of JSW Steel and Tata Steel following their latest quarterly results. It analyses operational performance, financial metrics, expansion strategies, and brokerage outlook to understand which steel major is better positioned to benefit from the next upcycle in the steel industry.
Industry Overview
India’s economic growth remains strong, with Advance NSO estimates projecting GDP growth of around 7.4 percent in FY26. Domestic demand continues to support industrial activity, with double-digit growth in auto sales and improving discretionary consumption. Rural indicators such as tractor and two-wheeler sales also remain positive.
Government capex remains strong despite a brief slowdown in October–November, while improving capacity utilisation and RBI rate cuts are expected to support private investment. Merchandise exports have also shown resilience despite global trade pressures.
JSW Steel is primarily engaged in the business of manufacturing and sale of Iron and Steel Products. It operates major facilities in Karnataka, Tamil Nadu, and Maharashtra, with international units in the US and Italy. Known for sustainability, it is a seven-time World Steel Association champion and aims to reach 43.4 MTPA capacity by FY28
With the market capitalization of Rs 2,88,808 crore, the shares of this company closed at Rs 1,181 per share, down by 2.79 percent from its previous day’s close. The company’s shares are trading at a fairly valued P/E of 37x compared to the industry average, and its stock gave a return of 15.6 percent over the year and 170 percent over the last five years.
Tata Steel Ltd is Asia’s first integrated private steel company setup in 1907. The company has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. With a 35 MTPA capacity as of 2026, it is one of the world’s most geographically diversified producers.
With the market capitalization of Rs 2,43,052 crore, the shares of this company closed at Rs 194.70 per share, down by 0.18 percent from its previous day’s close. The company’s shares are trading at a fairly valued P/E of 24.9x compared to the industry average, and its stock gave a return of 29 percent over the year and 181 percent over the last five years.
Capex and Expansion Strategy Comparison
JSW Steel continues to advance its expansion projects across key locations. The 5-million-tonne plant at Vijayanagar has reached full capacity, while the BF-3 upgrade is expected by Q4 FY26. The Dolvi Phase-3 expansion to 15 million tonnes is progressing, and new value-added product capacities are also being added.
The company is also strengthening raw material security. It now operates 13 iron ore mines after starting production at the Cudnem mine in Goa. By FY31, these mines could supply about 50 percent of its iron ore needs, while coal linkages and overseas stakes aim to meet around 25 percent of coking coal demand.
JSW Steel reported strong operational performance despite market uncertainties. Consolidated crude steel production reached 7.48 million tonnes, rising 6 percent year-on-year. Indian operations produced 7.28 million tonnes, up 7 percent. Production declined sequentially due to a temporary shutdown of Blast Furnace-3 at the Vijayanagar plant for capacity expansion.
The company also recorded its highest-ever sales during the quarter, supported by the ramp-up of the JVML plant. Domestic sales grew faster than India’s steel consumption, increasing market share. Value-added products reached a record 4.54 million tonnes, making up about 61 percent of total volumes, with strong demand from auto and renewable sectors.
Tata Steel’s India operations reported strong growth, with crude steel production rising about 12 percent year-on-year and quarter-on-quarter to 6.34 million tonnes. Sales also increased in line with production, crossing 6 million tonnes for the first time in a quarter, helping the company maintain a healthy EBITDA margin of around 23 percent.
The Automotive & Special Products segment delivered record volumes, supported by approvals for advanced steel grades from the Kalinganagar plant. The cold rolling mill and galvanising lines are ramping up well, while the auto downstream mix now contributes more than 50 percent of nine-month sales, strengthening Tata Steel’s position with leading OEMs.
Retail and downstream businesses also showed strong momentum. Tata Tiscon recorded its best-ever third-quarter volumes, while Tata Steelium sales grew 20 percent sequentially. The company’s digital platforms, Aashiyana and DigECA, recorded gross merchandise value of about Rs 2,380 crore, reflecting stronger customer engagement and expanding distribution reach.
On the project and international front, Tata Steel continues to invest in capacity expansion and sustainable steelmaking. It also increased its stake in the colour-coated business and acquired a majority stake in Thriveni Pellets. In Europe, UK deliveries remained subdued, while Netherlands operations remained stable with improving market sentiment.
Q3 Financial Performance Comparison
JSW Steel Ltd
Overall Financial Performance: JSW Steel reported consolidated revenue of Rs 45,991 crore for the quarter, with adjusted EBITDA of Rs 6,620 crore and reported EBITDA of Rs 6,496 crore. EBITDA margin stood at 14.4 percent, while EBITDA per tonne was around Rs 8,700. Steel prices remained at multi-year lows, which affected realisations during the quarter.
Margin Pressures and Cost Trends: During the quarter, coking coal costs increased by about $5 in line with company guidance, while iron ore costs saw a slight benefit due to better blends. Despite pressure on margins from lower steel prices, the company managed to partly offset the impact through a stronger value-added product mix and improved cost efficiencies.
Segment and Regional Performance: The Indian operations remained the key contributor, delivering adjusted EBITDA of Rs 6,522 crore with EBITDA per tonne of around Rs 8,800 and a margin of about 15 percent. Overseas operations were comparatively smaller, with the US business reporting EBITDA of $3.1 million due to lower volumes from a planned shutdown, while the Italy business posted EBITDA of €5.3 million.
Profitability, Debt and Capex Outlook: Consolidated PAT stood at Rs 2,410 crore compared to Rs 719 crore in the same quarter last year, supported by deferred tax benefits. Net debt was Rs 80,347 crore, with net debt-to-EBITDA at 2.91x. The company spent about Rs 3,500 crore in capex during the quarter and expects FY26 capex to reach Rs 15,000–16,000 crore.
Tata Steel Ltd
Overall Financial Performance Tata Steel reported consolidated revenue of Rs 57,002 crore in the October–December 2025 quarter, with EBITDA of Rs 8,309 crore and a margin of around 15 percent. EBITDA grew 39 percent year-on-year, while profit after tax rose sharply to Rs 2,730 crore from Rs 295 crore in Q3 FY25.
India and International Operations: India remained the key contributor, with revenue of Rs 35,725 crore and EBITDA of Rs 8,291 crore, translating to a margin of 23 percent. Crude steel production increased 12 percent year-on-year to 6.34 million tonnes, while deliveries reached a record 6.04 million tonnes. Netherlands operations reported stable output, while the UK business continued to face demand challenges.
Capex and Strategic Developments: The company spent Rs 3,291 crore on capital expenditure during the quarter and Rs 10,370 crore in the first nine months of FY26. Net debt declined to Rs 81,834 crore. Tata Steel also strengthened its long-term strategy by consolidating its stake in Tata Steel Colors and acquiring a majority stake in Thriveni Pellets.
Brokerage View
Motilal Oswal Financial Services believes JSW Steel delivered a decent performance in Q3 FY26, supported by higher volumes despite weak steel prices. The brokerage expects growth to remain strong as new capacities come on-stream, supported by healthy domestic demand and a rising share of value-added products in the sales mix.
Going forward, MOSL expects double-digit revenue growth for JSW Steel over FY26–FY28, driven by capacity ramp-ups and a potential recovery in steel prices supported by safeguard duties. Stable input costs and improving margins are likely to strengthen cash flows and reduce leverage, leading the brokerage to maintain a BUY rating with a target price of Rs 1,350.
Motilal Oswal Financial Services maintains a constructive outlook on Tata Steel, supported by strong domestic steel demand and potential price support from safeguard duties. The brokerage expects the India business to remain a key earnings driver as capacity utilisation and domestic consumption continue to improve.
In Europe, near-term profitability may remain dependent on steel spreads and energy costs. However, structural measures such as CBAM and tighter import quotas could gradually improve pricing discipline. MOSL maintains a BUY rating on Tata Steel with a target price of Rs 240 based on its sum-of-the-parts valuation.
Conclusion: Both JSW Steel and Tata Steel appear well-positioned to benefit from the next steel cycle, supported by strong domestic demand and ongoing capacity expansion. JSW Steel is focusing aggressively on scale, value-added products, and raw material security, which could help improve margins and support long-term growth as new capacities ramp up.
On the other hand, Tata Steel’s strength lies in its integrated operations and strong profitability in the Indian business, which continues to drive earnings despite challenges in Europe. With improving domestic steel demand and strategic investments across the value chain, both companies remain key beneficiaries of the industry upcycle, though their growth strategies differ in scale, diversification, and geographic exposure.
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