Jindal Steel & Power Ltd Management Discussions

1. Economic Overview

1.1 Global Economic Overview

The global economy demonstrated stable growth through CY2024, navigating a challenging environment shaped by high inflation, tightening monetary policy and ongoing geopolitical challenges. Global GDP growth remained stable at around 3.3%, as major central banks, including the U.S. Federal Reserve and the European Central Bank, maintained elevated interest rates for most of the year to combat persistent inflationary pressures. Although headline inflation showed signs of easing, especially during the second half of CY2024, it remained above central bank targets across several advanced and emerging economies. Economic activity was also impacted by a swift escalation of trade tensions and high levels of policy uncertainty. After years of low interest rates in advanced economies, real long-term government bond yields are gradually rising, backed by tighter monetary policy stance by central banks. While central banks may continue to ease rates gradually, interest rate is expected to decline only after inflationary targets are met. However, unemployment levels along with GDP growth rate vis-?-vis target also remains one of the critical parameters deciding the interest level at which the economy operate. Advanced economies such as the United States outperformed expectations, driven by robust consumer spending, Euro Area and the United Kingdom outpaced GDP growth expectations despite inflationary pressures and high interest rates.

Labour markets have stabilised, with unemployment and job vacancy rates returning to pre-pandemic levels. While global employment growth is expected to moderate slightly from 1.7% to 1.5% in CY2025 global unemployment rate declined marginally from 5% to 4.9% indicating continued momentum in job creation despite evolving economic conditions.

1.2 Global Economic Outlook

According to the latest projections by IMF, global GDP growth is estimated at 2.8% in CY2025 and 3% in CY2026, lower than the earlier forecast of 3.3% for both years in January 2025, primarily due to rising trade disruptions and heightened policy uncertainty. This represents a cumulative downward revision of 0.5 percentage points and remains well below the 2000–2019 historical average of 3.7. This downward revision is broad-based across economies, driven largely by the direct impact of new trade measures and the indirect effects of global trade linkages, rising uncertainty and weak business sentiment.

Global inflation is expected to decline to 4.3% in CY2025 and further drop to 3.6% in CY2026. While inflation estimates for advanced economies have been revised upward, there has been a slight downward revision for emerging and developing economies. Additionally, rising trade restrictions may add to inflationary pressures in key economies, which could affect household incomes and limit the flexibility of central banks to ease monetary policy. Growth in the United States is expected to slow to 1.8% in CY2025, marking a full one percentage point decline from 2024 estimates. IMF has reduced the growth forecast for China for CY2025 to 4% from 5% in CY2024. This is a reduction of one full percentage point, however, this is also down by 0.6% from its Jan 2025 update, marking a persistent downtrend in the Chinese economy largely driven by tariff induced slowdown there. In contrast, Indias outlook remains strong and steady at 6.2%, driven by robust private consumption, particularly in rural areas.

As challenges to global growth persist, positive signs are still visible. With easing trade tensions and continued dialogue between countries to achieve stable policies, global growth is likely to improve.

Countries are focusing on keeping inflation in check, supporting financial stability and laying emphasis on stronger reforms to boost growth. Governments are also prioritising growth-friendly investments, especially in infrastructure and digitalisation, to drive long-term growth. With better coordination, clear trade policies and smart investment decisions, the global economy is expected to move toward a more stable and resilient future.

1.3 Advanced Economies (AE)

Growth in advanced economies is expected to moderate over the coming years. As per latest projections by IMF, growth is anticipated to decline from an estimated 1.8% in CY2024 to 1.4% in CY2025 and slightly improve to 1.5% in CY2026. This includes notable downward revisions for major economies like the United States, the United Kingdom and Canada. Forecasts for Japan has improved substantially from 0.1% in CY2025 to 0.6% in CY2026. However, the CY2026 forecasts for Japan have been revised down from the Jan 2025 forecasts by 0.5%.

In the United States, growth is now expected to ease to 1.8% in CY2025 due to increased policy uncertainty, rising trade tensions and a softer demand outlook. Tariffs are likely to affect economic performance in CY2026, with growth projected at 1.7%, supported by moderate private consumption.

For the euro area, growth is expected to remain subdued at 0.8% in CY2025, before recovering to 1.2% in CY2026. The short-term softness is largely driven by ongoing uncertainty and trade barriers. However, recovery is anticipated in CY2026, supported by improvement in real wages and a potential fiscal easing in Germany, following revisions to its fiscal framework. Japans growth outlook for CY2025 has been revised to 0.6%, reflecting a downgrade of 0.5 percentage points compared to previous forecasts.

AE Growth Forecast

Region	2024	2025 (P)	2026 (P)
Advanced Economies	1.8	1.4	1.5
United States	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Germany	-0.2	0.0	0.9
France	1.1	0.6	1.0
Italy	0.7	0.4	0.8
Spain	3.2	2.5	1.8
Japan	0.1	0.6	0.6
UK	1.1	1.1	1.4
Canada	1.5	1.4	1.6
Other Advanced Economies	2.2	1.8	2.0

Source: IMF

Note: P stands for projections

1.4 Emerging Market and Developing Economies (EDME)

Growth in emerging markets and developing economies is projected to ease, with estimates suggesting a decline from 4.3% in CY2024 to 3.7% in CY2025 and a slight recovery to 3.9% in CY2026.

In emerging and developing Asia, growth is estimated at 5.3% in CY2024, expected to slow to 4.5% in CY2025, and marginally improve to 4.6% in CY2026. The ASEAN region has been particularly impacted by new tariffs introduced in April. Chinas economy is projected to grow at 4.0%, in CY2025 and CY2026, down from 5.0% in CY2024. While there is some support from fiscal expansion and strong performance in CY2024, the effects of recent trade restrictions and policy uncertainty are weighing on the medium-term outlook. However, if a trade agreement is signed between various countries with the US, these tariffs could be reduced substantially and consequently, the growth outlook for these countries will likely be revised upwards. Indias growth remains relatively strong but is expected to moderate from 6.5% in CY2024 to 6.2% in CY2025 and further to 6.3% in CY2026, supported largely by rural consumption and domestic demand.

In emerging and developing Europe, growth is expected to decline from 3.4% in CY2024 to 2.1% in both CY2025 and CY2026. This is primarily due to a slowdown in Russia, where growth is expected to fall from 4.1% in CY2024 to 1.5% in CY2025 and 0.9% in CY2026, driven by reduced private spending, investment and slower wage growth. Sub-Saharan Africa is expected to see a marginal dip in growth, from 4.0% in CY2024 to 3.8% in CY2025, followed by a moderate recovery to 4.2% in CY2026.

EMDE Growth Forecast

Region	2024	2025 (P)	2026 (P)
Emerging Market and	4.3	3.7	3.9
Developing Economies
Emerging and Developing	5.3	4.5	4.6
Asia
China	5.0	4.0	4.0
India	6.5	6.2	6.3
Europe	3.4	2.1	2.1
Russia	4.1	1.5	0.9
Latin America and the	2.4	2.0	2.4
Caribbean
Middle East and Central Asia	2.4	3.0	3.5
Sub-Saharan Africa	4.0	3.8	4.2

Source: IMF; Note: P stands for projections

1. 5 Prices 1.5.1 Input Prices

Crude Oil

Crude oil prices are expected to decline in the years ahead. Brent crude is projected to average around $64/bbl in CY2025, nearly $17 lower than prices in CY2024, and fall further to $60/bbl in CY2026. This downward trend is primarily due to slower global economic growth, rising trade tensions and growing uncertainty, all of which are expected to reduce global oil demand growth to just 0.7 million barrels per day (mbd) in CY2025 and CY2026.

On the supply side, global oil production is estimated to rise by 1.2 mbd in CY2025, almost twice the increase seen in CY2024, reaching a record high of 104.2 mbd. This upward trend is expected to continue, with an additional increase of 1.0 mbd per day in CY2026. These forecasts assume stable geopolitical conditions and continued cooperation within OPEC+, with member countries sticking to their production quotas. As energy prices have been a major driver of inflation in recent years, decline in oil prices may ease overall price pressures.

Thermal Coal

As per World Bank estimates, Thermal Coal prices are forecasted to continue its downward trend. Australian coal price is expected to fall by 27% in CY2025, with average prices during the rest of the year estimated to be $10 per metric tonne lower than in Q1 CY2025. A further 5% drop is anticipated in CY2026 driven largely by increase in power generation through renewables and continued slowdown in China, the biggest thermal coal consumer.

Global coal consumption reached a new peak of nearly 8.8 billion metric tonnes in CY2024. However, the pace of growth has moderated, with an increase of just 80 mmt, less than one-third of the rise seen over the previous two years. This slowdown was particularly evident in China, where coal consumption is likely to increase by a mere 1.7% as the country continues to work on reducing carbon emissions. According to estimates, Chinas thermal coal consumption is likely to peak in CY2025 at 4.24 billion tonnes Domestic coal production in India in FY25 was 1,048 million tonnes which grew at 11.7% annually. Indias thermal coal import declined by 9.5% during FY25 as domestic production remained robust and consumption remained stable. Meanwhile, coal demand continued to decline in Europe and North America, albeit at a slower rate than in CY2023. In many emerging and developing economies, especially in Asia, coal demand for power generation remains resilient. India is expected to be a key driver of global coal demand growth, as renewable energy currently fulfils only a fraction of the countrys growing electricity needs.

Global coal production rose by an estimated 80 million metric tonnes in CY2024, about one-quarter of the growth seen in 2023. Output increased in China (40 mmt), India (80 mmt), and Indonesia (30 mmt), while continuing to fall in Europe and the United States. India stands out as the only major producer where output is projected to increase, backed by supportive government policies. Meanwhile, coal production in China is expected to stabilise. In Indonesia, a sharp production cut is expected in line with official targets.

Reduced supply is also anticipated in the United States and Australia.

Source:W orld Bank

Iron Ore

In CY2024 international iron ore prices declined by around 7%, primarily due to a ~3% reduction in steel production in China. This reduction came on the back of declining domestic steel consumption, as producers scaled back output in response to weak demand conditions. The real estate sector—one of the principal drivers of steel demand in China—continued to underperform amid a persistent mismatch between supply and demand for new housing. Additionally, a subdued outlook for Chinas economic growth further weighed on steel demand and, consequently, on iron ore prices. Supply of iron ore remained strong with ~2% y-o-y increase to 1.6 billion tonnes with Brazil contributing with a stronger run rate compared to Australia where exports increased by ~1.2% during the period.

However, in India, the, iron ore prices moved contrary to international trends and remained in positive territory. This divergence was partly driven by concentrated supply within the domestic market and steady demand contributed to the upward pressure on prices, even as global benchmarks softened.

Coking Coal

Coking coal prices, particularly premium hard coking coal (PHCC) from Australia, moderated steadily through the year. Prices eased from over USD 260/t at the beginning of the fiscal to below USD 200/t by the final quarter, reflecting improved supply and stable demand. Monthly trends during the last quarter remained range-bound between US$193 and USD 207/t. The overall downward trajectory is in line with global forecasts indicating a softening in coking coal prices, amid expectations of market stabilisation following disruptions in Australian supply earlier in the year.

1.5.2 Output Prices

Global Steel Prices

Global steel prices during the period from April 2024 to March 2025 exhibited divergent trends across key markets—China, India, the United States, and the

European Union reflecting the complex interplay of local demand, trade dynamics, and macroeconomic conditions. China witnessed a broad-based decline in both flat and long steel prices as sluggish demand the construction and manufacturing sectors, coupled with high production levels, led to consistent oversupply. In contrast, Indias steel prices remained relatively stable, supported by domestic infrastructure activity, although increasing import pressures introduced volatility, particularly in the latter half of the fiscal year.

The United States saw a mid-year correction in prices, but the announcement and implementation of a 50% import tariff in early 2025 spurred a sharp price rebound across product categories. By February 2025, both HRC and TMT prices in the US had risen to their highest levels in the fiscal year. Meanwhile, the EU market remained subdued for most of the year due to tepid construction activity and increased import inflows, with only a modest recovery seen towards the end of the period. Overall, the year was marked by price convergence in some markets and divergence in others, driven by a mix of supply-side adjustments and region-specific policy actions.

Global TMT Prices

TMT prices followed a mostly softening trend across major steel-producing economies, with varying degrees of recovery seen toward the end of the year. In China, TMT prices declined steadily, from April

2024 to March 2025, reflecting prolonged weakness in construction activity and the absence of any significant policy-led demand stimulus. Persistent oversupply and elevated export volumes further dampened domestic prices, making Chinese steel more competitive in global markets but contributing to price corrections elsewhere.

Indias TMT prices started the year on a strong note, peaking in May 2024 on the back of sustained infrastructure-led demand and seasonal restocking. However, as the year progressed, prices corrected gradually by March 2025, largely due to subdued real estate activity and the impact of cheaper imports. Despite this decline, the overall pricing remained relatively resilient due to consistent government spending on infrastructure.

The US market experienced a mid-year dip in TMT prices, declining by around 12% between April 24 to November 24, primarily due to slowdown in construction starts and higher interest rates. However, the imposition of higher import tariffs led to a rebound, with prices climbing back to close to the April24 levels in March 2025, aided by improved infrastructure execution and tightening domestic supply. In the EU, TMT prices were largely stable but underwhelming for most of the period.

Global HRC Prices

HRC prices across global markets displayed contrasting patterns, shaped by local supply-demand dynamics, cost pressures, and trade policy interventions. In China, prices exhibited a sustained decline through the year, sliding almost by 9% through the year in FY25. This trend reflected subdued domestic consumption, driven by slowdown in manufacturing and real estate, alongside high inventory levels. Chinese mills increasingly turned to exports to manage oversupply, exerting downward pressure on regional and global HRC prices.

Indias HRC market remained more stable, with prices showing marginal fluctuations. The initial months steady growth supported by healthy infrastructure demand and limited import volumes. However, the latter part of the year witnessed a decline amid rising imports, cautious stockholding, and moderation in construction activity. The prices improved marginally in the second half of the year in anticipation of imposition of safeguard duties to protect the domestic steel industry from the pressure of low cost imports from China and FTA countries

The US HRC market underwent a significant shift trajectory. After softening in the early part of the financial year due to slowing demand and elevated inventories, prices surged sharply from December onwards. By February 2025, HRC prices had climbed the highest point during the fiscal year driven by renewed buying interest and the effect of increased tariffs on imported steel. This policy support tightened domestic supply and revived mill realisations.

In the European Union, HRC prices showed a generally weak trend throughout the year. Prices drifted lower, bottoming out in October. A gradual recovery was observed in the final months. This uptick was supported by restocking activity, anticipation of trade safeguards, and marginal improvement in downstream demand. However, overall price levels remained below early-year highs, indicating that market fundamentals had not fully rebounded.

1.6 Indian Economic Review

India reported real GDP growth of 6.5% in FY25, supported by strong agricultural output, early signs of revival in manufacturing, continued strength in services, and healthy private consumption, especially in rural areas. India became the fourth-largest global economy in 2025, driven by domestic reforms and the ‘Aatmanirbhar Bharat vision. Stable macroeconomic conditions, a robust external sector, declining fiscal deficit, easing inflation, and strong consumer spending helped the country sustain resilient growth despite global economic volatility. Better employment opportunities and continued focus on structural reforms are expected to support ongoing growth.

Job formalisation improved, with EPFO provisional data showing a net addition of 14.6 lakh members in March

2025, a 1.15% rise over March 2024, reflecting stronger employment generation and growing awareness of employee benefits. The MSME sector continues play a vital role in employment and entrepreneurship, second only to agriculture.

A capital expenditure outlay of B11.2 lakh crore for infrastructure in FY26, accounting for 3.1% of GDP, is expected to boost growth. The agriculture sector is estimated to grow by 4.6% in FY25, aided by strong Kharif output, a favourable monsoon, and healthy reservoir levels. Foodgrain production reached a record high in Rice, Maize, Soybean, and Groundnut, with total output estimated at 3,539 Lakh MT, a 6.5% increase over last year.

With strong agricultural performance, focused infrastructure development, and a low commodity price regime, the fiscal deficit is expected to remain under control. The revised estimate is 4.8% of GDP, projected to decline to 4.4% in FY26.

1.7 High Frequency Indicators

Various high-frequency indicators like GST collections, freight revenue and the Manufacturing PMI signal strong and sustained momentum in economic growth. Gross GST revenue for FY25 reached B22.08 lakh crore, marking a 9.4% increase over the previous year. This growth reflects stronger economic activity, better tax compliance and enhanced fiscal capacity supporting overall economic progress. In FY24, revenue-earning freight transport recorded a growth of 5.2%, highlighting steady improvement in logistics activity. Indian Railways, the fourth-largest railway network in the world, saw an 8% rise in passenger traffic compared to the previous year. At major ports, cargo handling reached 819 million tonnes in FY24. By December 2024, around 622 MT cargo had already been handled in FY25, moving steadily towards the annual target of 870 MT. The manufacturing sector showed steady growth with rising export orders and job creation.

Meanwhile, business sentiment also remained strong. The services sector remained the main driver of growth, contributing 75% to GVA in FY25, with a growing focus on high-skill, high-value services.

Outlook

The Reserve Bank of India has projected real GDP growth of 6.5% for FY26, maintaining the same estimations as FY25, after a strong growth of 9.2% in the previous fiscal year. Growth in agriculture, manufacturing and the services sectors are expected to keep the Indian economy buoyant in the year ahead. Consumer

Price Index (CPI) inflation for FY26 is expected to be around 4.0%. While inflationary pressures are likely to be under control, global uncertainties and weather-related issues may contribute to price volatility. IMF has maintained Indias growth rate as highest among all the large economies.

2. Industry Overview

2.1 Global Steel Industry

World crude steel production in 2024 stood at 1,885 million tonnes, compared to 1,904 million tonnes in 2023 and 1,889 million tonnes in 2022. Production has remained largely stable since 2020, recorded at 1,883 million tonnes during the year. In 2024, China remained the worlds largest crude steel producer with 1,005.1 million tonnes production capacity, followed by India at 149.4 million tonnes, Japan at 84.0 million tonnes and the USA at 79.5 million tonnes. Apparent steel consumption in 2024 stood at 1,742 million tonnes reflecting a per capita consumption of 214.7 kg. Steel demand is expected to grow by 1.2% in 2025 after a marginal correction in 2024.

Top 10 Crude Steel Production (Calendar Year – 2023 vs 2024)

Country	2024 (MT)	2023 (MT)	% Change
China	1,005	1,029	-2%
India	149	141	6%
Japan	84	87	-3%
United States	80	81	-2%
Russia	71	76	-7%
South Korea	64	67	-5%
Germany	37	35	5%
Turkey	37	34	9%
Brazil	34	32	5%
Iran	31	30	2%

Top 10 Finished Steel Producing Countries 2024 and Forecast for 2025

Country	2023 (MT)	2024 (f) (MT)	2025 (f) (MT)	YoY% 2023	YoY% 2024 (f)	YoY% 2025 (f)
China	896	869	860	-3.3	-3.0	-1.0
India	133	143	156	14.4	8.0	8.5
United States	91	89	91	-4.2	-1.5	2.0
Japan	53	52	53	-3.0	-2.1	1.7
South Korea	52	50	50	2.2	-3.8	-0.6
Russia	45	44	43	7.0	-1.0	-2.0
Turkey	38	36	36	17.2	-5.5	-1.4
Mexico	29	29	30	16.2	0.8	0.6
Germany	28	26	28	-13.5	-7.0	5.7
Brazil	24	25	26	1.9	5.0	3.0

2.1.1 Outlook

In 2025, the global steel industry is expected to witness a gradual recovery, supported by easing inflationary pressures, stable interest rates and improving investment sentiment in key consumer sectors. While developed economies may see a modest uptick in demand from a low base, momentum remains constrained by geopolitical uncertainties and continued challenges in the construction sector. According to the World Steel Association, global steel demand is projected to grow by 1.2% in 2025, reflecting cautious optimism after a period of subdued growth.

Regional Finished Steel Demand Forecast

Region	2023 (MT)	2024 (f) (MT)	2025 (f) (MT)	YoY% 2023	YoY% 2024 (f)	YoY% 2025 (f)
European Union (27) & UK	139	137	141	-8.7	-1.5	3.5
Other Europe	45	43	42	14.7	-5.0	-0.7
Russia & other CIS + Ukraine	60	61	60	11.5	0.3	-0.8
USMCA	133	131	133	-0.3	-0.9	1.6
Central and South America	46	46	48	1.0	-0.3	4.8
Africa	35	37	39	0.5	4.8	4.8
Middle East	54	57	59	4.2	4.9	3.3
Asia and Oceania	1,256	1,241	1,249	-1.2	-1.2	0.7
World	1,767	1,751	1,772	-0.8	-0.9	1.2
World excl. China	871	882	911	2.0	1.2	3.3
Developed Economies	359	352	359	-4.1	-2.0	1.9
China	896	869	860	-3.3	-3.0	-1.0
India	133	143	156	14.4	8.0	8.5
Em. and Dev. Economies excl.	379	386	397	4.3	1.9	2.7
China & India
ASEAN (5)	71	74	77	-2.2	4.5	3.5
MENA	68	71	74	0.6	5.3	3.8

Global steel industry growth is also likely to be aided by increased defence spend by various countries in the EU especially NATO members as they ramp up to meet their adopted goals of spending nearly 5% of their budget on defence spends. India remains the standout growth market, both in production and consumption, driven by sustained infrastructure development and robust manufacturing activity. The countrys per capita finished steel consumption reached approximately 98 kg, still significantly below the global average of around kg, highlighting strong long-term potential for demand expansion. This structural gap, combined with supportive policy initiatives, positions India as a key driver of global steel demand in the years ahead.

2.2 Indian Steel Industry

India is the second largest producer of crude steel.

In FY25, the total finished steel production comprising non-alloy and alloy (including stainless steel) stood at 146.56 million tonnes, marking a 5.3% increase over the previous year. It is primarily fuelled by growth across all steel-consuming sectors, especially by continued growth in infrastructure investments. Steel consumption also saw strong growth of 11.5%, reaching 152 million tonnes, backed by rising infrastructure development and industrial activity. Total steel imports grew by 9.2%, from 9.6 million tonnes to 10.5 million tonnes, exports of low cost steel from China and FTA countries taking advantage of zero duty structure. However, exports declined sharply by 27%, from 8.5 million tonnes to 6.3 million tonnes, suggesting a shift in focus toward meeting growing domestic needs and also increased tariff and non-tariff barriers making it less remunerative to export.

The National Steel Policy 2017 sets a long-term vision to boost the Indian steel industrys growth by 2030, focusing on both supply and demand. It aims to develop a modern, competitive and technology-driven sector that supports economic growth and aligns with the ‘Make in India initiative to promote domestic manufacturing and nation-building.

2.2.1 Indian Trade Scenario

India remained a net importer of steel in FY25, with total imports rising 9.2% y-o-y to 10.5 million tonnes. Flat products continued to dominate the import basket at 9.03 million tonnes, accounting for 86% of total steel imports.

On the export front, volumes fell sharply by 35.1% to 4.9 million tonnes of finished steel. GP/GC sheets and coils were the most exported products, contributing 1.14 million tonnes, 23% of total exports, with Italy emerging as the largest export destination at 0.71 million tonnes.

Indian Steel Industry Performance (April–March)

Item	2024–25 (MT)	2023–24 (MT)	% Change
Crude Steel Production	152	144	5.3
Hot Metal Production	91	87	4.9
Pig Iron Production	8	7	13.2
Sponge Iron Production	56	52	7.9
Total Finished Steel	147	139	5.3
Production
Finished Steel Import(including semi-finished)	11	10	9
Finished Steel Export(including semi-finished)	6	8	-27
Net Imports (including semi-finished)	4	1	286
Finished Steel	152	136	11.5
Consumption

2.2.2 Outlook

India continues to anchor global steel demand and production growth, supported by its demographic advantage, expanding economy and sustained infrastructure momentum. The Government of Indias continued focus on sectors such as railways, housing, renewable energy and logistics is expected to keep steel consumption elevated in the near to medium term.

Continued dumping of low cost steel by China and duty free steel by FTA countries has resulted in sharp decline in steel prices during FY25. The government initiated measures to impose safeguard duty towards the end of the financial year which helped stabilisation of steel prices towards the end of the year. The government officially announced imposition of 12% safeguard duty across several steel products on April 21, 2025.

India steel consumption is 98 kg currently compared to the global average of 214.7 kg, highlighting significant headroom for growth. The National Steel Policy 2017 continues to guide long-term expansion plans, with a vision of achieving 300 MT of installed capacity and 160 kg per capita consumption by 2030.

3. Company Overview

Jindal Steel Limited, established in 1979 as part of the OP Jindal Group founded in 1952, is Indias only private rail manufacturer and a leading player in the steel, mining, and infrastructure sectors. With a strong focus on backward and forward integration, we produce high-quality, cost-effective steel products. Our emphasis on innovation and value-creation, enables us to deliver superior grade products that are tailored to specific requirements of diverse sectors. With a production capacity of 9.6 million tonnes per annum and captive power capacity of 1,634 MW, we continue to contribute to nation-building efforts.

Our manufacturing facilities are strategically located in Raigarh and Raipur (Chhattisgarh), Angul and Barbil (Odisha) and Patratu (Jharkhand). With a global workforce of over 20,000 employees across three continents, we are committed to serve diverse markets across the entire steel value chain and meaningfully contribute to the governments Make in India vision.

Capacities

For Jindal Steel, the increased strategic capex would drive significant shareholder value.

Raw Material Capacities

To support seamless operations across the value chain, we have developed strong raw material processing capabilities — including 10.6 MTPA of iron ore, 20.4 MTPA of non-coking coal, and 2.4 MTPA of coking coal. These ensure secure, efficient supply for steel production and reduce dependency on external sources.

Finishing Mill Capacities

Our finishing mill capacity is designed to meet diverse market demands across product categories. It comprises 1 MTPA of Rail RUBM, 0.75 MTPA of Special

Profile Mill (SPM), 2.5 MTPA of Plate, 0.6 MTPA of Wire Rod, 2.

MTPA of Bar Rod Mill, and 6 MTPA of HR Coil capacity. This wide-ranging capability allows us to deliver a versatile portfolio of high-quality finished products across infrastructure, construction and industrial segments.

Iron-making Capacity

Our iron-making operations are powered by 3.12 MTPA of Direct Reduced Iron (DRI) capacity and 7.3 MTPA of Blast Furnace capacity. This blend of technologies offers operational flexibility and cost optimisation, contributing significantly to our overall steel production value chain.

Liquid Steel Capacity

Our steel melting operations have a capacity of 9.6 MTPA, enabling large-scale production with high quality and process control. These facilities are key to maintaining throughput and meeting varied specifications across downstream product lines.

3.1 Key Strengths Raw Material Security

In FY25, Jindal Steel continued to focus on strengthening its backward integration capability by enhancing raw material security from iron ore and coal mines. These assets play a critical role in supporting cost-efficient and consistent production across the value chain.

Iron Ore

Jindal Steels iron ore requirements were partly met through its captive mines at Kasia and Tensa. During the year, total production stood at 3.45 million tonnes from the Kasia mine and 1.16 million tonnes from the Tensa mine. As of March 31, 2025, Kasia holds a total mineral reserve of 261.95 million tonnes, while Tensa has 9.01 million tonnes of reserves, ensuring long-term supply continuity.

The slurry pipeline project — a key strategic initiative aimed at streamlining ore logistics between Barbil and Angul — made substantial progress during the year and is 82% complete as of March 2025. The project remains on track. The pipeline, once operational, is expected to reduce logistic costs, improve efficiency and contribute to environmental sustainability through reduced truck movement.

Thermal Coal – India

The Companys captive thermal coal requirements were primarily met through operations at Gare Palma IV/6 and Utkal C, which together contributed to a total coal production of 7.37 million tonnes in FY25. This compares against a combined Environmental Clearance (EC) capacity of 15.37 million tonnes per annum, which includes EC capacity of 8 million tonnes per annum for Utkal B1 and B2, where extraction has not commenced yet. A key development in FY25 was the allocation of the Saradhapur coal block, which was awarded under a revenue-sharing model. The block holds an estimated geological resource of 3,257 million tonnes, making it a significant addition to the Companys coal portfolio. It governed by a 10% revenue-sharing agreement, further reinforcing the Companys commitment to strengthen its raw material reserves and reduce dependence on external sources.

Integrated Value Chain

In FY25, the Company continued to improve its operational efficiency through targeted improvements across the value chain to retain its competitive edge and enhance production capabilities.

Operational Integration

To support future growth, the Company is undertaking a significant capacity expansion project at its Angul facility. It is expected to add 6 million tonnes per annum steelmaking capacity. The project comprises the installation of a new Blast Furnace, Coke Oven Batteries, rail connectivity and supporting infrastructure. Upon completion, the total capacity at Angul will reach 12 million tonnes per annum. Alongside, downstream integration in Hot Rolled (HR) and Cold Rolled (CR) product lines is expected to enhance product value, improve market reach and contribute meaningfully to overall margin expansion.

Cost-saving Initiative

In FY25, the Company continued to focus on improving logistics efficiency and cost optimisation through strategic infrastructure projects. These initiatives are expected to support long-term operational stability and enhance resource efficiency.

Initiative	Outcome
Refractory Shell Life Improvement	• Reduced shell changes to 1 per month
Introduced high-quality refractory bricks, optimised operating parameters and	• Gained ~4 additional production hours/month
modified oxygen lance profile	• Increased steel output by 1,005 MT/month
First Time Right (FTR) Improvement	• Improved FTR performance
Strengthened process control and quality standards to reduce rework and diversion	• Enhanced delivery timelines
	• Reduced cost by addressing issues related to poor quality
Crude Benzol Yield Enhancement	• Improved yield and production levels
Optimised recovery at the Coke Oven Plant	• Realised cost savings through higher by-product recovery

Slurry Pipeline – Barbil to Angul

The slurry pipeline connecting Barbil to Angul is 82% complete as of March 2025 and is targeted for commissioning in FY26. Once operational, it will provide a more efficient and environment-friendly mode of transporting iron ore, reducing reliance on conventional road and rail transfers. The pipeline is expected to result in significant logistics cost savings while also lowering carbon emissions.

Paradip Port Berth

Work is progressing on the dedicated berth at Paradip

Port, with the first phase of operations expected to begin by H2 FY26. This facility is being developed to improve bulk handling capabilities for raw materials and finished goods. It is expected to reduce transportation bottlenecks and improve plant logistics.

Capital Expenditure and Returns

As of FY25, the Company has invested B25,924 crore out of the total planned project capex of B47,043 crore towards various capacity expansion and infrastructure projects. At full utilisation, these investments are expected to generate a pre-tax RoCE of 18–20%, underlining the focus on disciplined capital allocation and cost-effective growth. Additionally, focused interventions were implemented during the year to enhance operational efficiency and reduce production costs:

Value-added Products

In FY25, the share of value-added products in total sales stood at 61%, reflecting the Companys continued focus on enhancing its product portfolio and improving realisations. The overall product mix remained balanced between flat products (43%) and long products (57%), aligning with market demand and customer requirements. During the year, the Company also expanded its offerings by introducing new grades and exploring additional export destinations, thereby strengthening its presence across key domestic and international markets.

Capacity Expansion

The expansion project at Angul, which is expected to increase steelmaking capacity to 12 million tonnes per annum (MTPA), is progressing as planned and remains on schedule for commissioning. As of March 31, 2025, the total steel capacity stood at 9.6 MTPA. Cumulatively, the Company has incurred a capex of B 25,924 crore towards this project out of the total planned investment of B47,043 crore, reflecting steady progress on project execution and capital deployment. The enhanced capacity is expected to provide a strong foundation for future growth and improve cost efficiencies across the value chain.

3.2 Business Performance (domestic)

During FY25, the Company produced 8.12 million tonnes of crude steel and achieved sales of 7.97 million tonnes, maintaining stable operational performance despite external challenges. Export volumes accounted for

4.34% of total sales, reflecting the Companys continued presence in international markets. The average selling price stood at B61,833/t, shaped by a moderate pricing environment during the year.

The Company delivered a healthy EBITDA per tonne of B11,901, supported by a balanced product mix and for the year ongoingcost-efficiencyinitiatives.Net stood at B2,846 crore, underscoring the Companys operational resilience and its ability to manage input cost volatility while preserving profitability.

3.3 Business Performance (Global) 3.3.1 Mozambique

The Mozambique operations remained active throughout FY25, contributing meaningfully to the Companys overall production volumes. During the year, the mine produced 7.61 lakh tonnes of coking coal and 6.17 lakh tonnes of thermal coal, while sales stood at 7.67 lakh tonnes and 5.83 lakh tonnes, respectively. Despite a steady production run, the financial performance remained subdued due to pricing pressures and higher operating costs, resulting in an EBITDA of USD 0.86 million and a net loss of USD 6.8 million. The Company continues to monitor market dynamics and operational efficiencies to improve profitability from this asset.

3.3.2 South Africa

Operations at the Kiepersol mine in South Africa faced a challenging year. The mine produced 2.18 lakh MT of anthracite coal, but persistent pricing pressure, coupled with elevated input costs, led to a negative financial outcome. The operation recorded an EBITDA loss of USD 0.6 million and a net loss of USD 0.8 million. While operational continuity was maintained, the Company is exploring cost rationalisation opportunities and operational improvements to enhance the viability of this asset.

3.3.3 Australia

The Australian mines remained under maintenance in FY25, with no production reported during the year. Given the extended inactivity and prevailing market conditions, the Company conducted a detailed review of the assets carrying value and recognised an impairment of B1,091.59 crore. This step reflects a conservative reassessment of future cash flows and value realisation from Australian operations. The Company believes that the current carrying value is significantly lower than the fair value of underlying assets. Future operations in Australia will be evaluated based on market recovery, regulatory developments and strategic alignment.

3.4 Business Outlook

In FY26, we will continue to prioritise margin enhancement by deepening our focus on cost optimisation and increasing the share of value-added products in our portfolio. Efforts will be directed towards the launch of new steel grades and tailored offerings across domestic and export markets to strengthen customer engagement.

With expectations of a recovery in steel demand, particularly from infrastructure and construction sectors, we are well-positioned to capture emerging opportunities. Enhancing marketing reach, improving operational efficiencies and executing ongoing capacity expansion projects will remain key focus areas to drive sustainable growth in the year ahead.

4 Financial Performance

4.1 Standalone Performance

	(L crore)	(L crore)	YoY % Change
Gross Revenue*	57,025	57,504	-1%
Net Revenue	48,932	49,766	-2%
EBITDA	8,939	10,204	-12%
Depreciation & Amortisation	2,272	2,216	3%
Finance Cost (Net)	620	921	-33%
PBT (before Exceptional items)	6,161	7,151	-14%
Exceptional Gain/(Loss)	(1,314)	-	-
Reported PAT	3,621	5,273	-31%

Note:

*Inclusive of GST(Goods and Service Tax) and Other Income

4.2 Consolidated Performance

	FY 2024–25 (L crore)	FY 2023–24 (L crore)	YoY % Change
Gross Revenue*	58,044	58,115	0%
Net Revenue	49,932	50,183	-1%
EBITDA	9,485	10,201	-7%
Depreciation & Amortisation	2,768	2,822	-2%
Finance Cost (Net)	1,312	1,294	1%
PBT (before Exceptional items)	5,582	6,241	-11%
Exceptional Gain/(Loss)	(1,229)	-	-
Reported PAT	2,846	5,943	-52%

Note:

*Inclusive. GST (goods and service tax) and Other income

4.3 Standalone ratios

Ratio	FY 2024-25	FY 2023-24	% Variance	Reason for Variance
Current ratio	1.04	1.08	(4%)	"NA"
Debt equity ratio	0.14	0.24	(42%)	Due to a decrease in debt and an increase in equity during the year ended 31st March, 2025.
Debtors turnover ratio (days)	13.06	12.12	8%	"NA"
Inventory turnover (days)	57.32	61.15	(6%)	"NA"
Net Debt to EBITDA	0.25	0.69	(64%)	Due to a decrease in Net Debt for the year ended 31st March 2025.
Operating profit margin (%)	18.19%	20.40%	(11%)	Due to a decrease in EBITDA for the year ended 31st March 2025.
Net profit margin (%)	7.37%	10.54%	(30%)	Mainly due to the Exceptional Item loss charged in the Profit & Loss Account for the year ended 31st March 2025.
Return on net worth (%)	7.28%	11.59%	(37%)	Mainly due to the Exceptional Item loss charged in the Profit & Loss Account for the year ended 31st March 2025.

Risk Management Policy

As a Company with global operations spread across multiple geographies, we proactively identify and assess risks that may potentially affect our business. Our risk management policy, supported by a robust governance framework enables us to evaluate, report and address risks to ensure smooth business operations. The Risk Management Committee supports the Board by regularly reviewing risk exposure, evaluating existing controls, and recommending corrective actions. Risk management is, therefore, deeply integrated in our decision-making and day-to-day operations. It plays a key role in ensuring business continuity and helping us achieve our long-term goals. Each department head is responsible for identifying and assessing risks within their function and it is regularly reviewed by senior management and the Board. The Board holds the ultimate responsibility for risk oversight and ensures compliance with all relevant laws and regulations, fostering a culture of accountability and preparedness across the organisation.

Read more on Page 42

Internal Controls

The Company has a well-structured internal control system designed to match the nature and scale of its operations. The Audit Committee plays a key role in overseeing financial risks and internal controls, while both the Board of Directors and the Audit Committee regularly review the adequacy and effectiveness of these systems. To strengthen financial oversight, the

Audit Committee conducts regular meetings with the statutory auditors and the management team. These controls help ensure efficient use of resources and full compliance with applicable laws and regulations.

Internal Audit

The internal audit team enables the Company to adhere to regular checks and reviews. They monitor internal processes closely and suggest improvements whenever deviations from set practices are found. With strong oversight and regular reviews, the Company maintains high compliance with internal rules and regulations. The audit team, equipped with the right skills and experience, reports directly to the Chairman of the Audit Committee and the Managing Director. Each year, with the Audit Committees approval, the team prepares a Risk-Based Audit Plan (RBAP) to assess the effectiveness of internal controls. Audits are conducted as per plan and any gaps identified are shared with process owners and management for timely corrective action. Key findings are also reported to the Audit Committee for further review.

Cautionary Statement

This report contains forward-looking statements based on current expectations and projections. However, actual results may differ from those mentioned or implied due to various influencing include changes in economic conditions, in demand and supply, pricing trends in domestic and global markets, shifts in government regulations, tax policies, and other relevant developments. The Company is not obligated to update or revise these statements based on future events or new information. As a result, the actual performance may vary from what is anticipated in this report.