GLOBAL ECONOMY OVERVIEW
The global economy faced a challenging environment during 2025, shaped by geopolitical tensions, evolving trade policies and persistent uncertainty across major markets. Economic activity remained supported by technology investments, relatively stable financial conditions and continued growth across several emerging economies. However, conflicts across certain regions, trade fragmentation and uneven demand conditions continued to influence global growth and business sentiment.
According to the International Monetary Fund (IMF), global GDP growth was 3.4% in 2025. Growth in advanced economies moderated to 1.9%, reflecting softer consumer demand, tighter financial conditions and subdued industrial activity in several developed markets. In contrast, emerging market and developing economies expanded by 4.4% supported by domestic demand, infrastructure investments and manufacturing activity.
Emerging and Developing Asia remained the largest contributor to global growth, recording growth of 5.5% in 2025. While economic activity across the region remained relatively strong, weaker external demand and trade related uncertainties affected export-oriented economies. China continued to face structural challenges arising from weakness in the property sector, while several advanced economies recorded only modest growth due to ongoing macroeconomic pressures.
Global inflation moderated during the year, declining to 4.1% in 2025 as supply chain disruptions eased and commodity prices remained relatively stable for much of the year. Inflation in advanced economies moderated further, while several emerging economies faced varying levels of price pressures due to differences in monetary policy responses, labour market conditions and exposure to commodity price movements.
According to the World Economic Forums Chief Economists Outlook, geopolitical developments, trade fragmentation and policy uncertainty remained among the most significant factors influencing economic activity during the year. Rising concerns around supply chain resilience, energy security and changing trade patterns continued to shape investment decisions and global business strategies.
Sources: International Monetary Fund (IMF), World Economic Outlook, April 2026; World Economic Forum (WEF), Chief Economists Outlook, May 2026
GLOBAL GROWTH PROJECTIONS (REAL GDP GROWTH)
| Category | 2025 | 2026 (P) | 2027 (P) |
| Global Economy (World Output) | 3.4 | 3.1 | 3.2 |
| Advanced Economies | 1.9 | 1.8 | 1.7 |
| Emerging Market & Developing Economies | 4.4 | 3.9 | 4.2 |
P: Projections
Source: International Monetary Fund (IMF), World Economic Outlook, April 2026
GLOBAL ECONOMY OUTLOOK
The global economy is expected to grow at a moderate pace over the next two years. According to the International Monetary Fund (IMF), global GDP growth is projected at 3.1% in 2026 and 3.2% in 2027. These forecasts were revised downward from earlier estimates, mainly due to higher tariffs, trade policy changes and increased uncertainty affecting economic activity and investment decisions across major economies.
Advanced economies are projected to grow by 1.8% in 2026 and 1.7% in 2027, while emerging market and developing economies are expected to grow by 3.9% in 2026 and 4.2% in 2027. Growth prospects continue to vary across regions depending on domestic demand, trade conditions and policy measures.
The IMF notes that the rise in trade barriers and policy uncertainty has weighed on the global growth outlook. In addition, ongoing conflicts in West Asia and Eastern Europe continue to pose risks to energy markets, commodity prices, supply chains and business confidence. These developments could add further pressure on growth and inflation if disruptions persist or intensify.
Global inflation is expected to ease gradually over the forecast period, although trends may differ across regions depending on energy prices, commodity markets and domestic demand conditions. Financial conditions and monetary policy decisions across major economies will also influence economic activity.
The World Economic Forum (WEF) highlights that geopolitical tensions, trade fragmentation and supply chain adjustments remain key concerns for businesses and policymakers. At the same time, investments in artificial intelligence, digital technologies and productivity improvements could support economic activity over the medium term.
Overall, the global outlook remains dependent on developments in trade policies, geopolitical conditions, inflation trends and policy measures adopted across major economies.
Sources: International Monetary Fund (IMF), World Economic Outlook, April 2026; World Economic Forum (WEF), Chief Economists Outlook, May 2026
INDIAN ECONOMY OVERVIEW
India remained the fastest-growing major economy in FY 2025-26, supported by strong domestic demand, sustained investment activity and broad-based growth across sectors. Despite heightened global trade uncertainty, geopolitical tensions and supply chain disruptions, the economy maintained its growth momentum. According to the World Bank and other estimates, Indias real GDP growth accelerated to 7.6% in FY 2025-26 from 7.1% in FY 2024-25, driven by favourable domestic conditions, policy support measures and expanding economic activity across manufacturing and services sectors.
Domestic demand continued to be the primary driver of growth. Private consumption was supported by easing inflation, improving household incomes and stable labour market conditions. Investment activity was aided by public expenditure on infrastructure, accommodative monetary conditions and rising private sector participation. Manufacturing and services remained key contributors to economic expansion, while infrastructure development across transportation, logistics and urban projects supported broader economic activity. The Economic Survey 2025-26 also highlighted the role of ongoing reforms and infrastructure creation in enhancing the countrys medium-term growth potential.
Indias external sector remained relatively stable despite a challenging global trade environment. The country strengthened its position within global value chains through trade partnerships and expanding manufacturing capabilities. Total exports registered healthy growth during FY 2025-26, supported by strong performance in services exports and increasing participation in high-value manufacturing sectors. Foreign direct investment inflows remained healthy, reflecting investor confidence in Indias long-term growth prospects. Foreign exchange reserves were around USD 698 Billion as of March 2026, providing an important buffer against external volatility.
Macroeconomic fundamentals were stable during the year. Inflation moderated significantly and averaged around 2% during FY 2025-26, supported by stable food prices, improving supply conditions and lower commodity prices for a large part of the year. Fiscal consolidation continued, while the current account deficit remained manageable at around 1% of GDP. Stable inflation, improving public finances and a healthy external position helped strengthen the overall economic environment.
Supported by domestic consumption, infrastructure investments, manufacturing expansion and policy reforms, India strengthened its position as one of the worlds leading growth economies. The countrys large domestic market, improving competitiveness and ongoing investments across key sectors provide a strong foundation for sustainable economic development.
Sources: Ministry of Finance (Economic Survey 2025-26), World Bank (India Development Update, April 2026), KPMG (Decoding the Indian Economy FY2026)
INDIAN ECONOMY OUTLOOK
Indias economic outlook remains supported by strong domestic fundamentals, ongoing infrastructure investments and continued policy focus on manufacturing, employment and ease of doing business. While geopolitical developments, trade policy uncertainty and disruptions in energy markets may influence global economic activity, India is expected to remain among the fastest-growing major economies over the medium term.
Growth is expected to be supported by domestic consumption, public infrastructure spending and private sector investments. Continued expansion in transportation, logistics, energy and urban infrastructure is expected to strengthen economic activity and improve productivity across sectors. Investments under government initiatives aimed at manufacturing, electronics, semiconductors, clean energy and industrial development are also expected to support capital formation and job creation.
Indias growing integration with global value chains, supported by recently concluded trade agreements and ongoing efforts to diversify export markets, is expected to create new opportunities for exports and investments. The countrys large domestic market, skilled workforce and improving manufacturing ecosystem continue to enhance its attractiveness as an investment destination.
Inflation is expected to remain within a manageable range, supported by stable domestic supply conditions and prudent monetary policy. Fiscal consolidation efforts and a healthy banking system are expected to support macroeconomic stability, while comfortable foreign exchange reserves provide a buffer against external uncertainties.
The World Bank projects Indias GDP growth at 6.6% in FY 2026-27, while the Economic Survey indicates that economic activity is likely to remain supported by infrastructure creation, domestic demand and ongoing reforms. Although risks from geopolitical tensions, commodity price volatility and global trade disruptions remain, Indias economic outlook continues to be supported by strong domestic drivers and sustained investment activity.
Sources: World Bank (India Development Update, April 2026), KPMG (Decoding the Indian Economy FY2026)
GLOBAL STEEL DEMAND
Global steel demand remained under pressure during 2025 due to weakness in Chinas property sector, subdued industrial activity across several developed economies and increasing trade disruptions. According to the Organisation for Economic Co-operation and Development (OECD) Steel Committee, global steel demand contracted for the fourth consecutive year in 2025, with the rate of decline accelerating to over 2%. Weak construction activity in China and softer demand across major industrial economies weighed on global steel consumption. At the same time, rising trade barriers and geopolitical uncertainties influenced steel trade flows and market sentiment.
China, the worlds largest steel consumer, faced structural challenges arising from the prolonged correction in its real estate sector. The OECD noted that Chinese steel demand declined by an estimated 6.5% during 2025, while exports from the country reached a record 131 Million tonnes as producers increasingly redirected surplus production to international markets. Chinas growing export presence, combined with rising global excess capacity, contributed to pricing pressures across several regions. Global excess steelmaking capacity increased to 640 Million tonnes in 2025, while total global steelmaking capacity reached a record 2,445 Million tonnes.
In contrast, several emerging economies supported global steel demand. India remained the fastest-growing major steel market, driven by infrastructure development, construction activity, automotive production and capital expenditure. Southeast Asia, Africa and other developing regions also contributed positively to steel consumption growth. According to the World Steel Association (worldsteel), developing economies excluding China recorded growth, although at a slower pace than recent years.
Global steel demand is projected to stabilise and gradually recover over the next two years. According to worldsteels April 2026 Short Range Outlook, global steel demand is expected to grow by 0.3% in 2026 to 1,724 Million tonnes, followed by a stronger growth of 2.2% in 2027 to 1,762 Million tonnes. The recovery is expected to be supported by infrastructure investments, manufacturing activity and improving demand across developed economies. However, the pace of recovery may be influenced by geopolitical developments, trade restrictions, energy market volatility and the persistence of excess steelmaking capacity. Recent developments in the Middle East have also led to a downward revision in global steel demand forecasts for 2026, highlighting the uncertainty surrounding the sector.
Sources: World Steel Association (Short Range Outlook, April 2026); OECD Steel Committee Statement (March 2026); Reuters (April 2026); MarketsandMarkets Iron & Steel Market Report 2026-2031
INDIAN STEEL DEMAND
India remained one of the largest steel-consuming markets globally during FY 2025-26, supported by infrastructure development, construction activity, manufacturing growth and investments across transportation, railways, energy and urban infrastructure. Government initiatives such as the National Steel Policy, Production Linked Incentive (PLI) Scheme for Specialty Steel, industrial corridor development and ongoing infrastructure projects contributed to steel consumption across sectors.
According to the Ministry of Steel, finished steel consumption increased by 7.6% to 163.7 Million tonnes in FY 2025-26 from 152.1 Million tonnes in FY 2024-25. The increase was driven by demand from construction, infrastructure and manufacturing segments. Per capita steel consumption reached 100kg during FY 2025-26, while the National Steel Policy targets an increase to 160kg by FY 2030-31. Indias steel demand grew at a faster pace than several major global markets.
On the supply side, crude steel production increased by 10.7% to 168.4 Million tonnes in FY 2025-26, compared with 152.2 Million tonnes in FY 2024-25. Finished steel production increased by 9.7% to 160.9 Million tonnes from 146.7 Million tonnes in the previous year. India also retained its position as the worlds second-largest crude steel producer. Steelmaking capacity increased to around 220 Million tonnes during FY 2025-26 and remains aligned with the National Steel Policy target of 300 Million tonnes by 2030. Capacity expansion plans announced by major steel producers and investments under the PLI scheme are expected to drive future capacity additions.
The sector attracted investments aimed at increasing domestic steel production and value added steel manufacturing. During FY 2025-26, 85 projects were approved under the PLI 1.2 Scheme for Specialty Steel, with proposed investments of approximately Rs. 11,887 Crores and downstream steel capacity of 8.7 Million tonnes. These investments are expected to increase domestic production of specialty steel and reduce import dependence in selected product categories.
Indias trade position improved during the year. Finished steel exports increased by 35.9% to 6.6 Million tonnes in FY 2025-26, while imports declined by 31.7% to 6.5 Million tonnes. As a result, India became a marginal net exporter of finished steel during the year. Export growth was driven by higher shipments of hot rolled coils, pipes and long steel products, while imports moderated across key flat steel categories.
The steel sector benefits from investments in roads, railways, housing, renewable energy, industrial infrastructure and manufacturing. According to ICRA, domestic steel demand is expected to be aided by government expenditure in steel-intensive sectors and investments across infrastructure and industrial projects.
Sources: Ministry of Steel, Government of India; India Brand Equity Foundation (IBEF) Steel Sector Report, February 2026; ICRA Ferrous Metals Quarterly Update, May 2026
GLOBAL STEEL PIPE AND TUBE MARKET
The global steel pipes and tubes market was driven by investments in infrastructure, energy, construction and industrial development. According to Grand View Research, the global steel pipes and tubes market was valued at USD 139.3 Billion in 2026 and is projected to reach USD 209.9 Billion by 2033, reflecting a CAGR of 6.0% during 2026-2033. Asia-Pacific accounted for more than 60% of the global market in 2025, driven by infrastructure development, urbanisation and manufacturing activity across China, India and Southeast Asia.
Demand for steel pipes and tubes is driven by investments in transportation networks, water distribution systems, urban infrastructure, industrial facilities and energy projects. Governments across major economies increased spending on roads, bridges, railways, metro systems and utility infrastructure, increasing the requirement for structural, mechanical and line pipes. In addition, investments in water supply, sanitation and wastewater treatment projects supported demand for steel pipes due to their durability and long service life.
The energy sector was the largest end-use segment for steel pipes and tubes. According to the International Tube Association (ITA), oil & gas applications account for approximately 51% of global tube and pipe demand. Investments in oil & gas exploration, transmission pipelines, LNG infrastructure and refinery projects contributed to market growth during 2025. New applications such as hydrogen transportation networks and carbon capture, utilisation and storage (CCUS) infrastructure are also creating demand for specialised tubular products.
Global tube and pipe production recovered during 2025. According to ITA, global tube and pipe production reached 83.6 Million tonnes during the first half of 2025, with full-year production estimated at 167.2 Million tonnes, compared with 161.2 Million tonnes in 2024. Production growth was supported by increased activity in North America, China and energy related projects across several regions.
Industrial manufacturing, automotive production and construction activity also contributed to market demand. The automotive sector accounts for approximately 15% of global tube demand, while mechanical engineering contributes around 9%. At the same time, construction activity remained supported by urbanisation and infrastructure development across emerging economies. According to IMARC Group, Asia-Pacific accounted for 75.6% of the global steel tubes market in 2025, driven by investments in transportation, energy and industrial infrastructure.
Technological developments, including advanced coatings, corrosion-resistant materials and high-strength steel grades, are expanding application areas for steel pipes and tubes. Increasing focus on energy efficiency, lower-carbon manufacturing processes and specialised applications is also influencing product development across the industry.
Sources: International Tube Association (World Tube & Pipe Market Overview, December 2025); Grand View Research (Steel Pipes & Tubes Market Report, January 2026); IMARC Group (Steel Tubes Market Report, 2026-2034)
GLOBAL STEEL PIPES AND TUBES
| Year | Market Size (USD Billion) |
| 2026 | 139.3 |
| 2033 | 209.9 |
CAGR 6.0%
Source: Grand View Research, Steel Pipes & Tubes Market Report, 2026-2033
INDIAN STEEL PIPE AND TUBE MARKET
The Indian steel pipes and tubes market reached 14.6 Million tonnes in 2025 and is projected to reach 28.7 Million tonnes by 2034, reflecting a CAGR of 7.41% during 2026-2034. The sector forms a part of Indias infrastructure, energy, water management, construction and industrial value chains, with demand linked to investments across these segments.
Infrastructure development remained a key demand driver during 2025. Investments in roads, railways, metro projects, logistics parks, industrial corridors and urban infrastructure increased the use of steel pipes and tubes across structural and engineering applications. Government programmes such as the Smart Cities Mission, Pradhan Mantri Awas Yojana and industrial corridor projects also contributed to demand across housing and urban development projects.
Water distribution and sanitation projects also contributed to market growth. The Jal Jeevan Mission and investments in sewage treatment and water supply networks expanded the requirement for pipes used in water transportation and utility infrastructure. Additional requirements came from irrigation projects and municipal infrastructure upgrades across various states.
The oil & gas sector remained a major end-use industry for steel pipes and tubes. Expansion of natural gas transmission networks, city gas distribution projects and pipeline infrastructure under programmes such as Pradhan Mantri Urja Ganga increased the use of seamless and welded pipes. Investments in oil & gas exploration, refining and petrochemical facilities also contributed to industry demand.
Manufacturing activity across automotive, engineering, chemicals, pharmaceuticals and capital goods sectors generated demand for steel tubes used in industrial applications. Warehousing, logistics and industrial construction projects added to consumption across both pipes and tubes categories.
The industry is also seeing increased use of galvanised, coated and corrosion-resistant products across water, infrastructure and industrial applications. Advances in manufacturing processes, including high-frequency induction welding and other production technologies, have expanded the range of applications for steel pipes and tubes across end-use sectors.
Indias infrastructure pipeline, expansion of water distribution networks, growth in natural gas infrastructure and investments in manufacturing are expected to influence demand for steel pipes and tubes over the medium term.
Sources: IMARC Group - India Steel Pipes Market Report (2026-2034); IMARC Group - India Steel Tubes Market Report (2026-2034)
INDIAN STEEL PIPES - MARKET SIZE
| Year | Market Size (Million Tonnes) |
| 2025 | 14.6 |
| 2034 | 28.7 |
CAGR 7.41%
Source: IMARC Group, India Steel Pipes Market, 2026-2034
DOWNSTREAM SECTORS AND OUTLOOK
Demand for steel pipes and tubes is linked to activity across infrastructure, construction, transportation, energy, water management and industrial sectors. Government expenditure, private investments and capacity additions across these segments continue to influence the consumption of structural tubes, line pipes and value added tubular products. Warehousing, metro rail, railways, water infrastructure, housing, urban infrastructure and renewable energy are among the key sectors contributing to demand for steel pipes and tubes in India.
Warehousing
Indias warehousing sector is benefiting from growth in manufacturing, third-party logistics (3PL), e-commerce and organised retail. According to Knight Frank, warehousing transaction volumes across eight primary markets reached 72.5 Million sq. ft. in 2025, compared with 56.4 Million sq. ft. in 2024. Manufacturing accounted for 47% of total transactions, while 3PL represented 27% of demand. The development of industrial parks, multimodal logistics hubs and logistics infrastructure is increasing the requirement for warehouse buildings and storage facilities. These projects contribute to demand for structural steel tubes used in warehousing, industrial sheds and logistics parks.
Sources: Knight Frank India Warehousing Market Report 2026; Colliers India Industrial Overview Q1 2026
Metro Rail
Indias metro rail network expanded from 248 km in 2014 to 1,095 km in 2025 and is now operational across 26 cities. India has become the worlds third-largest operational metro network. Since 2014, 38 metro rail projects covering 1,051 km have been sanctioned with an estimated investment of Rs. 3.44 Lac Crores, while the annual metro budget increased to Rs. 29,550 Crores in FY 2025-26 from Rs. 5,798 Crores in FY 2013-14. Expansion of metro corridors, stations, depots and associated urban infrastructure is increasing the use of steel intensive construction materials. These projects contribute to demand for structural steel tubes used in station buildings, depots, pedestrian infrastructure and supporting structures.
Source: Press Information Bureau (PIB). Metro Rail: A Catalyst for Sustainable Urban Growth and Financial Resilience, March 2026
Railways
Indian Railways continues to invest in network expansion, station redevelopment, freight corridors and modernisation projects. Under the Union Budget 2026-27, Indian Railways received a capital expenditure allocation of Rs. 2.93 Lac Crores. As of FY 2024-25, approximately 34,000 km of new railway tracks had been constructed across the country, while 38 railway projects covering 5,098 km were sanctioned in Maharashtra during 2025. In addition, 508 railway stations are being redeveloped under the Amrit Bharat Station Scheme with an investment of over Rs. 4,470 Crores. Expansion of railway lines, freight corridors, stations, depots and associated infrastructure contributes to demand for structural steel tubes used in station buildings, platforms, sheds, pedestrian infrastructure and engineering structures.
Water Infrastructure
Water infrastructure remains a key source of demand for steel pipes and tubes in India, supported by investments in drinking water supply, groundwater management and water conservation projects. Under the Jal Jeevan Mission, rural tap water coverage increased from 3.24 Crores households in August 2019 to 15.85 Crores households as of April 2026, covering nearly 82% of rural households. The expansion of household tap connections has accelerated the development of water transmission and distribution networks across the country. Alongside this, water conservation and groundwater recharge initiatives continue to gain scale. As of January 2026, 19.19 Lacs water conservation and rainwater harvesting structures, 10.35 Lacs recharge structures and 3.61 Lacs restored water bodies had been created under the Jal Shakti Abhiyan: Catch the Rain programme. Continued investments in water supply and water resource infrastructure are expected to support demand for steel pipes used in transmission and distribution applications.
Sources: PIB Press Release - Impact of Jal Jeevan Mission (February 2026), Jal Jeevan Samvad, April 2026, National Jal Jeevan Mission, PIB Research Article - Strengthening Groundwater Management for Indias Water Future (January 2026)
Housing and Real Estate
Housing and real estate development continue to contribute to demand for steel pipes and tubes across residential, commercial and mixed-use projects. According to ANAROCK, new residential launches across the top seven cities reached approximately 1.26 Lac units in Q1 2026, reflecting a 26% year-on-year increase. In addition, developers acquired over 3,000 acres of land across 149 transactions during 2025, creating development potential of more than 200 Million sq. ft. Affordable housing remains a part of the residential market, supported by government initiatives and urban housing requirements. Residential construction, townships and real estate developments contribute to demand for structural steel tubes, hollow sections and pipes used in building and utility infrastructure.
Sources: ANAROCK - Residential Market Viewpoints Q1 2026; JLL - India Monthly Market Dynamics, April 2026; Knight Frank - India Real Estate Q1 2026
Urban Infrastructure
Urban infrastructure development in India continues to be supported by investments in transportation networks, public utilities and city redevelopment projects. The Union Budget 2026-27 increased infrastructure capital investment outlay to Rs. 12.22 Lac Crores, while the Smart Cities Mission had completed 94% of its 8,067 sanctioned projects involving investments of approximately Rs. 1.64 Lac Crores as of June 2025. In addition, the Government plans to connect 120 new airports over the next decade to support growing passenger traffic and regional connectivity. According to the Ministry of Statistics and Programme Implementation (MoSPI), 1,941 infrastructure projects with a revised cost of Rs. 41.50 Lac Crores were under implementation as of March 2026. Investments in roads, flyovers, airports, public buildings and urban transport infrastructure contribute to demand for structural steel tubes and hollow sections used in construction and engineering applications.
Sources: IBEF - Infrastructure Report, February 2026; Ministry of Statistics & Programme Implementation (MoSPI), Flash Report on Central Sector Infrastructure Projects, April 2026
Renewable Energy and Transmission
Indias renewable energy sector continues to expand, supported by capacity additions across solar, wind and other non-fossil fuel sources. During FY 2025-26, the country added 55.3 GW of non-fossil power capacity, taking the total installed non-fossil capacity to 283.46 GW as of March 31, 2026. India also became the worlds third-largest renewable energy market by installed capacity. Renewable energy projects are increasing the requirement for solar mounting structures, transmission infrastructure and associated engineering applications. At the same time, strengthening of interstate and intrastate transmission networks has become a priority to support renewable energy integration and rising electricity demand. Investments in renewable energy generation and power transmission infrastructure contribute to demand for structural steel tubes and hollow sections used across energy projects.
Sources: Ministry of New and Renewable Energy (MNRE) / Press Information Bureau, April 2026; ICRA - Indian Renewable Energy Sector, March 2026; Institute for Energy Economics and Financial Analysis (IEEFA), May 2026
POLICY SUPPORT
The Indian steel industry continues to benefit from policy measures focused on capacity expansion, domestic manufacturing, infrastructure development and quality enhancement. Government initiatives aimed at increasing steel production, improving logistics, promoting value added steel products and strengthening manufacturing capabilities have supported the sectors long-term growth objectives. In addition, measures focused on infrastructure expansion, industrial development and product quality are contributing to increased steel consumption across key end use sectors. The following initiatives are playing an important role in shaping the growth of the domestic steel industry.
National Steel Policy (NSP), 2017
The National Steel Policy (NSP), 2017 continues to serve as the long term roadmap for the development of Indias steel industry. The policy aims to create a globally competitive steel sector by increasing domestic steel production, expanding capacity and promoting higher steel consumption across key sectors of the economy. It targets crude steel production capacity of 300 Million tonnes (MT), steel demand of 255 MT and per capita steel consumption of 158 kg by 2030.
The policy focuses on enhancing domestic steelmaking capabilities, encouraging investments across the steel value chain and improving the availability of quality steel products. Supported by infrastructure development, manufacturing growth and urbanisation, the policy provides a framework for capacity expansion and increased steel usage, supporting the long-term growth of the steel industry.
Sources: Ministry of Steel Annual Report 2025-26; PIB - Bharat Steel 2026: HD Kumaraswamy Engages Ambassadors to Build Global Steel Partnerships (December 2025)
Production Linked Incentive (PLI) Scheme for Specialty Steel
The Production Linked Incentive (PLI) Scheme for Specialty Steel aims to promote domestic manufacturing of value added steel products, encourage investments and strengthen Indias position in specialty steel production. During FY 2025-26, the Ministry of Steel launched the third round of the scheme (PLI 1.2), expanding the coverage of specialty steel categories and encouraging further investments across the sector.
As of FY 2025-26, the scheme had attracted committed investments of Rs.43,874 Crores, with more than Rs.22,000 Crores already invested. The scheme is also expected to support employment generation and increase domestic production of specialty steel products. By encouraging capacity additions, technology upgrades and import substitution, the initiative is supporting the development of a more diversified and value-added steel manufacturing ecosystem in India.
Source: Ministry of Steel Annual Report 2025-26
Steel Quality Control Orders (QCO)
Steel Quality Control Orders (QCOs) are playing an important role in maintaining quality standards across the domestic steel industry. The framework requires specified steel products to comply with Bureau of Indian Standards (BIS) requirements, supporting the availability of quality steel for downstream industries and infrastructure projects.
During FY 2025-26, the Ministry of Steel adopted a calibrated approach by suspending the enforcement of 55 standards under the QCO framework, including select specialty steel grades. The measure was aimed at ensuring adequate availability of products with limited domestic production while supporting the implementation of specialty steel projects under the PLI Scheme. In addition, procedures for importing non QCO steel grades were simplified, helping improve ease of doing business and reducing compliance requirements for users of such products.
Source: Ministry of Steel Annual Report 2025-26
PM GatiShakti National Master Plan
The PM GatiShakti National Master Plan aims to improve infrastructure planning through coordinated development across transportation, logistics, energy and industrial sectors. The initiative focuses on enhancing multimodal connectivity, reducing logistics costs and improving project execution through integrated planning among various ministries and departments.
As of February 2026, 352 infrastructure projects with a total estimated cost of Rs. 16.10 Lac Crores had been evaluated under the Network Planning Group (NPG) mechanism. Of these, 201 projects had been sanctioned, while 167 projects were under implementation. The programme covers projects across roads, railways, urban infrastructure, ports, airports and industrial corridors. Continued infrastructure development under PM GatiShakti is expected to support steel consumption across construction, transportation and industrial sectors.
Source: PIB - PM GatiShakti Network Planning Group Evaluates 352 Infrastructure Projects
SWOT ANALYSIS
Strengths
Scaled Player in Structural Steel Tubes
Strategically Located Manufacturing Footprint
Shift towards Value-Added Product Mix
Well Positioned for Infrastructure Demand
Capacity Expansion Driving Growth
Proven Growth Track Record
Weaknesses
Opportunities
Threats
COMPANY OVERVIEW
JTL Industries Limited (JTL or the Company) is an integrated manufacturer of steel pipes, tubes and value added steel products, catering to infrastructure, construction, industrial manufacturing, renewable energy, water distribution and engineering applications. The Company operates an integrated manufacturing platform across both HR coil-based and secondary steel ecosystems, enabling it to serve a diverse range of end-use sectors through a broad product portfolio and value-added processing capabilities.
The Companys product portfolio includes DFT Structural Steel Pipes, MS Hollow Sections, Galvanised Steel Tubes and Pipes, Solar Mounting Structures, Steel Tubular Poles, Lattice Towers and Metal Crash Barriers. These products are used across infrastructure projects, industrial facilities, water distribution networks, renewable energy installations, transmission infrastructure and transportation applications. JTL operates six manufacturing facilities across Punjab, Maharashtra, Chhattisgarh and Himachal Pradesh, with a total installed capacity of 1.0 Million tonnes per annum. Its manufacturing footprint is supported by galvanising facilities, value added processing capabilities and Direct Forming Technology (DFT), which enables the production of high strength structural steel pipes with greater dimensional accuracy and operational efficiency.
The Company continues to expand its presence in value added products while strengthening its position in core structural steel applications. Its diversified product portfolio and presence across multiple end use sectors provide opportunities to participate in infrastructure development, industrial growth, renewable energy expansion and urban development projects. JTL also serves international markets and continues to strengthen its export presence alongside its domestic operations.
BUSINESS SEGMENT REVIEW
| Business Segment | Product Category | Description | Key Benefits/Features | Primary Applications |
| Core Structural Products | DFT Structural Steel Pipes | Large-diameter, precision-engineered pipes produced via Direct Forming Technology (DFT). | Faster production turnarounds with zero tooling change; superior dimensional accuracy and enhanced structural strength. | Core infrastructure, industrial structures, and heavy engineering. |
| Core Structural Products | MS Hollow Sections | Mild steel hollow sections available in multiple geometric shapes, dimensions, and wall thicknesses. | High tensile strength, excellent weldability, and structural versatility across fabrication needs. | Commercial and residential buildings, logistics warehouses, and industrial fabrication. |
| Core Structural Products | Galvanised Steel Tubes and Pipes | Zinc-coated steel tubes engineered for protection against environmental corrosion. | Extended operational life cycle with low maintenance requirements; ideal for outdoor exposure. | Potable water infrastructure, solar framing structures, and industrial perimeter fencing. |
| Value-Added Products (VAP) | Solar Mounting Structures | Complete structural framework designed and fabricated for solar photovoltaic installations. | Fully integrated solution design tailored to meet rising renewable energy installation demand. | Utility-scale solar power farms, industrial solar setups, and commercial rooftop solar installations. |
| Value-Added Products (VAP) | Steel Tubular Poles and Lattice Towers | High-strength steel infrastructure designed for transmission and municipal utility applications. | Engineered for durability, high structural stability, and prolonged service in public utility systems. | Highway street lighting, electrical power transmission lines, and utility infrastructure networks. |
| Value-Added Products (VAP) | Metal Crash Barriers | Heavy-duty steel safety barriers manufactured for roadways and transit corridors. | High impact resistance engineered to improve vehicle containment and roadside safety. | National highways, high-speed expressways, and urban transit road networks. |
| Specialised Products | Copper and Alloy Products | High-quality copper strips, foils, and specialised non-ferrous alloy products. | High electrical and thermal conductivity, excellent formability, and corrosion resistance. | Electrical applications, precision industrial components, and defence and aerospace systems. |
OPERATIONAL OVERVIEW
Production Volume
JTL Industries achieved a significant milestone by delivering its highest-ever annual sales volume of 3,95,900 metric tonnes in FY 2025-26, driven by capacity increase, higher capacity utilisation, and an optimised product mix across its manufacturing units.
Operational progress was led by the Mangaon facility, where increasing utilisation scales and expanding market acceptance of DFT structural steel pipes increased overall volume growth. Value-added products gained robust traction, reaching a 27% share within the Companys sales mix during the year. Additionally, the Company widened its global footprint as export volumes crossed 10% of total sales, and secured the strategic ACRS certification for supplying to the Australian market.
The fiscal year also marked a key structural addition with the acquisition of JTL Defence Limited (formerly RCI Industries & Technologies Limited), which was brought under the JTL umbrella in December 2025. During its initial operational overhaul phase, the unit achieved a production run rate of 100 metric tonnes per month in Q4 of FY 2025-26, contributing Rs. 15 Crores in revenue and establishing the Companys manufacturing presence in specialised copper and brass alloys.
Capacity Expansion
JTL Industries Limited is executing a major strategic growth phase, moving forward with an intact target to double its cumulative manufacturing capacity from approximately 1 Million tonnes (9,86,000 MTPA baseline, including 3,00,000 MTPA dedicated to backward integration) to 2 Million tonnes by FY 2026-27.
Mangaon Plant Expansion and Product Diversification
To optimise manufacturing efficiency, the upcoming capacity addition is concentrated exclusively at the Mangaon facility in Maharashtra, with currently, no further expansions planned at other existing plants. This site is receiving a 7 Lacs tonne capacity outlay through the construction of a new Cold Rolling Mill (CRM) complex. This development marks a structural shift towards the super value-added segment, enabling the Company to enter the market for colour-coated and galvanised pipes.
Timelines and Capex Status
The expansion project is currently in its final stages. While the installation of this massive complex encountered minor delays due to heavy rains and other structural factors, the project remains on track to become a fully operational facility by the end of H1.
The financial commitments for this expansion are structured as follows:
Financial and Operational Outlook
The intensive capital expenditure cycle over the last 1.5 to 2 years temporarily impacted the Companys asset efficiency ratios and operational cash flow due to capital locked in Capital Work-in-Progress (CWIP). However, as these assets become fully operational and scale production, the Company targets a strong return to its traditional efficiency baseline, projecting a recovery in ROCE to the 25% to 30% range and positive operating cash flows by the next financial year.
Concurrently, volume throughput is rising. The Mangaon facility which currently runs at a 35% to 40% utilisation rate is targeted to achieve 60% to 70% utilisation as market acceptance and customer panel approvals scale up, driving a projected 30% volume growth on existing lines alone.
FINANCIAL OVERVIEW
Revenue
Revenue from operations for FY 2025-26 stood at Rs. 2,13,636.36 Lacs, compared to Rs. 1,91,631.11 Lacs in FY 2024-25. This annual topline performance represents an expansion of 11.48% year-on-year, driven by resilient domestic demand across infrastructure, construction, and industrial segments, alongside improved asset deployment at production sites.
Profitability
Consolidated EBITDA for FY 2025-26 reached Rs. 16,706.79 Lacs, marking a healthy expansion of 14.90% over the Rs. 14,540.40 Lacs recorded in FY 2024-25. This performance yielded an EBITDA margin of 7.82% for the year. Profit After Tax (PAT) climbed Rs. 10,305.71 Lacs, representing a 4.28% growth against the Rs. 9,882.52 Lacs delivered in the prior fiscal period. This operational resilience and bottom-line stability reflect stronger facility utilisation, a shifting product mix towards value-added components, and enhanced realisation efficiencies, which expanded the Companys EBITDA per ton to Rs. 4,220.
Consolidated Balance Sheet
Total assets increased to Rs. 1,99,627.62 Lacs in FY 2025-26, building on the structural expansion from Rs. 1,33,909.82 Lacs recorded in FY 2024-25. Correspondingly, total equity further strengthened to Rs. 1,52,175.55 Lacs in FY 2025-26, up from Rs. 1,21,864.53 Lacs in the prior fiscal period.
Cash Flows
Net cash outflow for FY 2025-26 stood at Rs. 3,967.73 Lacs, as compared to the net cash outflow of Rs. 2,679.93 Lacs recorded in FY 2024-25.
Financial Results
(Rs. In Lacs)
| Description | FY 2025-26 (Standalone) | FY 2025-26 (Consolidated) | FY 2024-25 (Standalone) | FY 2024-25 (Consolidated) |
| Revenue from Operations | 1,79,837.62 | 2,13,636.36 | 1,91,290.69 | 1,91,631.11 |
| Other Income | 1,409.45 | 1,268.72 | 2,255.93 | 2,244.82 |
| Total Revenue | 1,81,247.07 | 2,14,905.07 | 1,93,546.62 | 1,93,875.93 |
| Total Expenses | 1,69,744.87 | 2,01,390.72 | (1,80,387.99) | (1,80,714.73) |
| EBITDA | 13,870.48 | 16,706.79 | 14,510.22 | 14,540.40 |
| Finance Cost | 932.99 | 1,122.09 | (440.60) | (452.49) |
| Depreciation and Amortisation | 1,435.29 | 2,070.35 | (910.99) | (926.72) |
| Exceptional Items | - | - | - | - |
| Profit before Tax | 11,502.20 | 13,518.07 | 13,158.63 | 13,161.20 |
| Profit after Tax | 8,787.86 | 10,305.71 | 9,880.74 | 9,882.52 |
| Other Comprehensive Income | (266.43) | 13,892.73 | (1,024.04) | (1,024.04) |
| Total Comprehensive Income for the Year | 8,521.43 | 24,198.44 | 8,856.70 | 8,858.49 |
| Earnings per Share (Basic in Rs.) | 2.24 | 2.62 | 2.60 | 2.60 |
| Earnings per Share (Diluted in Rs.) | 2.24 | 2.62 | 2.30 | 2.30 |
SIGNIFICANT CHANGE IN KEY FINANCIAL RATIOS
| Key Ratios | FY 2025-26 | FY 2024-25 | % Change | Reasons, if Change >25% |
| Debtors Turnover Ratio (in days) | 71 | 53 | 32.76 | Increase in trade receivable turnover ratio due to rise in trade receivables mainly in subsidiaries. |
| Inventory Turnover Ratio (in days) | 46 | 41.41 | 11.84 | N.A. |
| Interest Coverage Ratio | 13.05 | 24.89 | (47.58) | Decrease in interest coverage ratio due to rise in interest expense |
| Current Ratio | 3.22 | 9.15 | (64.78) | Decrease in current ratio due to higher utilisation of banking facilities. |
| Debt-Equity Ratio | 0.16 | 0.06 | 156.57 | Increase in debt-equity ratio due to higher utilisation of CC limits |
| Operating Profit Margin (%) | 7.78 | 7.50 | 3.68 | N.A. |
| Net Profit Margin (%) | 4.82 | 5.16 | (6.46) | N.A. |
| EPS (Diluted) (in Rs.) | 2.62 | 2.30 | 13.99 | N.A. |
| Return on Net Worth (%) | 6.77 | 8.10 | (16.49) | N.A. |
RISK MANAGEMENT
JTL Industries actively deploys a structured risk oversight framework designed to systematically identify, assess, and manage operational and strategic exposures. The Risk Management Committee, in coordination with executive leadership, reviews potential risk elements at regular intervals to maintain robust mitigation protocols across all business verticals. This comprehensive approach incorporates regular external assessments, which provide clear, actionable insights to continuously refine the Companys internal controls, governance practices, and operational resilience.
| Risk Category | Potential Impact | Mitigation Strategy |
| Macroeconomic Risk | Extended economic deceleration may depress purchasing activity across core consumer sectors, slowing business growth and pressure revenue generation. | Broadening the client footprint across diverse industrial sectors, backing innovation initiatives for versatile product uses, and securing global alliances to extend market penetration. |
| Competitive Risk | Escalating market rivalry within the steel manufacturing and infrastructure segments could challenge volume distribution, dilute operational margins, and pressure retention metrics. | Keeping regular checks on market dynamics, prioritising structural product differentiation alongside premium quality, and deepening buyer relationships to cultivate long-term commercial ties. |
| Currency Volatility Risk | Sharp swings in foreign currency rates can impact net earnings derived from international supply chains, altering projected bottom-line yields. | Executing protective financial tools such as forward commercial contracts, spreading geographic distribution channels to balance regional exposure, and embedding currency adjustments into supply agreements. |
| Risk Category | Potential Impact | Mitigation Strategy |
| Raw Material Cost Risk | Upward pressure on primary input costs can increase standard production outlays, placing a strain on underlying business margins. | Finalising long-term supply arrangements, refining warehouse inventory turns, and exploring viable alternative materials to protect production price lines. |
| Commodity Price Risk | Inherent volatility in steel and raw asset pricing cycles alters both operational manufacturing costs and consumer market pricing setups. | Utilising disciplined commercial hedges, establishing agile price correction updates, and strengthening internal checks within the operational management structure. |
| Interest Rate Risk | Upward trends in central borrowing rates can inflate corporate financing outlays, directly affecting absolute profitability. | Sustaining a conservative debt profile and deploying balanced capital allocation tactics to reduce vulnerability to shifting credit cycles. |
| Foreign Exchange Risk | Currency exposure arising from cross-border trade functions introduces variability into international balance sheets. | Controlling transaction exposures via a systematic foreign exchange governance structure while executing protective forward market options. |
| Human Capital Risk | Elevated employee turnover or deficit in specialised technical skillsets can slow structural productivity, development, and expansion timelines. | Upgrading talent acquisition systems, evaluating HR metrics against industrial benchmarks, and establishing performance-linked recognition plans to improve retention. |
| Regulatory and Policy Risk | Unforeseen statutory adjustments or sudden modifications in industrial policies can affect daily operations and mid-term organisational projections. | Tracking legislative drafts continuously and organising flexible compliance frameworks to execute necessary adjustments rapidly. |
| Infrastructure and Logistics Risk | Distribution bottlenecks or port delays could constrain the regular supply chain movement, resulting in delayed deliveries and higher handling fees. | Maintaining strategic collaboration with transport agencies, setting up optimal backup storage capacity, and deploying advanced freight planning to bypass terminal congestion. |
| Compliance Risk | Lapses in conforming to shifting corporate laws or legal statutes can attract financial penalties, litigation, or reputational damage. | Organising routine evaluations of legal rules, carrying out systematic internal audits, and deploying automated tracking platforms to capture regulatory tasks. |
| Occupational Health and Safety Risk | Workplace incidents or inadequate field safety standards can result in legal liabilities, operational interruptions, or damage to corporate standing. | Enhancing on-site safety procedures, scheduling routine emergency response training, and fostering a shared Health, Safety, and Environment (HSE) focus across manufacturing centres. |
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RESPONSIBILITY
JTL Industries recognises that sustainable growth extends beyond financial metrics. In FY 2025-26, the Company advanced its ESG agenda by broadening its community programmes, expanding environmental stewardship initiatives, and maintaining rigorous governance practices.
As part of its carbon footprint management, JTL Industries focused on integrating renewable energy across its manufacturing processes and expanding modern rainwater harvesting infrastructures. These initiatives reduce dependence on finite natural resources and build a more eco-conscious operating framework.
On the social dimension, the Company sustained its corporate programmes to improve access to quality education, enhance localised healthcare, and drive rural development. A major focus remained on creating training channels for rural youth, upskilling them for career paths in sales and plant operations to generate equitable local opportunities. Simultaneously, the Company prioritises an inclusive workplace culture that emphasises equal opportunity and professional merit. Corporate social governance throughout FY 2025-26 focused on proactive stakeholder outreach, accessible grievance response channels, and systematic improvements to customer service standards.
Corporate governance is supported by a comprehensive multi-layered audit framework, combining statutory, internal, and secretarial audits executed by independent external firms. Strategic oversight by the Board of Directors and its independent members ensures balanced, thorough checks and balances to preserve strict transparency and institutional accountability across all business units.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
JTL Industries maintains a comprehensive internal control framework structured to align with the growing scale and operational complexity of the organisation. These procedural checks are engineered to protect corporate assets, secure the integrity of financial reporting, and enforce operational accountability across all manufacturing facilities.
Throughout FY 2025-26, executive management and independent auditors carried out systematic evaluations of the systems operational efficiency and its capacity to manage shifting risk vectors. The scope of internal audits covered fundamental business processes, including adherence to corporate policies, transactional authorisation limits, and the verification of information tracking networks. Detailed audit observations were reported directly to the Audit Committee to determine appropriate administrative actions and enhancements.
The organisations control infrastructure relies on formalised policies, standard operating procedures, and an integrated risk tracking setup. Continuous internal audits, regular executive reviews, and digital monitoring systems work together to ensure the framework remains adaptive. Financial data is systematically authorised, logged, and reported, creating a dependable foundation for the publication of accurate financial disclosures.
The Audit Committee maintained regular collaboration with both Statutory and Internal Auditors, reviewing audit results closely to ensure the prompt execution of recommended adjustments and control upgrades.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
Human capital constitutes a primary structural pillar for JTL Industries. Throughout FY 2025-26, the Company focused on calibrating its HR practices to match expanding corporate targets, enhancing employee engagement frameworks to improve retention metrics, and expanding workforce capabilities to drive overall operational productivity.
The Company updated its HR policy framework to align with organisational targets and changing employee needs. Key initiatives focused on strengthening performance evaluation systems, upgrading talent acquisition and onboarding pathways, and widening the reach of technical training modules. As of March 31, 2026, the Company employed 906 persons. The workplace environment remained stable, characterised by harmonious industrial relations and completely uninterrupted plant operations across all manufacturing units. The Company executed scheduled annual reviews and merit-based compensation adjustments in accordance with established internal policies.
Professional development remained a core operational priority, with the Company executing multiple functional and leadership training initiatives during the year. These programmes focused on improving plant floor efficiency, encouraging operational innovation, and preparing personnel for shifting corporate responsibilities. JTL Industries continues to foster a performance-driven culture backed by transparent evaluation structures, specialised skill development, and clear career progression paths. Operational discipline, institutional integrity, and strict alignment with corporate values remain fundamental mandates across all organisational levels.
CAUTIONARY STATEMENT
Statements in this report on Management Discussion and Analysis relating to the Companys objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable security laws or regulations. These statements are based on certain assumptions and expectations of future events. Actual results could, however, differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand and supply conditions, selling prices, raw material costs and availability, changes in Government regulations and tax structure, general economic developments in India and abroad, and factors such as litigation, industrial relations, and other unforeseen events. The Company assumes no responsibility in respect of forward-looking statements made herein that may undergo changes in the future based on subsequent developments, information, or events.
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