Volume Growth and Input Price Stabilization Help Steel Companies Offset Softer Price Realizations

India’s steel sector displayed resilience despite a challenging pricing environment, as several major steel companies reported year-on-year (YoY) revenue growth driven primarily by higher volumes. Even though price realisations softened compared to previous quarters, strategic cost controls, steady demand, and supportive policy measures contributed to stable operational performance across the industry.

Revenue Growth Supported by Strong Volume Momentum

Most listed steel companies, including Tata Steel, JSW Steel, SAIL, Jindal Steel, and Jindal Stainless, reported positive YoY revenue growth, supported by an uptick in sales volumes on both YoY and QoQ bases.

Key drivers behind the volume-led growth include:

• Higher domestic demand, especially in infrastructure and construction
  
  
• Stabilised input costs, especially iron ore and coking coal
  
  
• Protective trade measures, including an anti-dumping duty of up to 12%, which supported domestic producers
  
  
• Improved operational efficiencies and capacity utilisation
  
  

While prices stayed soft compared to the previous quarter, the demand environment and volume momentum helped cushion the impact.

EBITDA Growth Fueled by Lower Input Costs

Across the sector, EBITDA/ton improved YoY, supported by:

• Lower coking coal prices are reducing the cost of production
  
  
• Higher output volumes, improving operating leverage
  
  
• Better cost optimisation measures
  
  

Although the drop in price realisation acted as a partial drag, most companies still managed to report healthy EBITDA margins.

Company Highlights:

• Tata Steel and JSW Steel delivered strong double-digit EBITDA margins.
  
  
• Jindal Steel posted relatively stable margins despite a slight dip in deliveries.
  
  
• Jindal Stainless recorded one of the strongest EBITDA margin upticks, supported by rising demand for value-added stainless products.
  
  

PAT Margins Stay Steady Despite Realisation Pressure

Profit After Tax (PAT) margins remained stable for most steel majors, benefiting from:

• Improved cost dynamics
  
  
• Higher volume throughput
  
  
• Efficient working capital management
  
  

Companies like Jindal Stainless and Jindal Steel reported higher PAT margins than peers, highlighting the benefits of diversified product mixes and stronger domestic market penetration.

Deliveries Rise on Both YoY and QoQ Basis

Delivery volumes tell a strong growth story:

• JSW Steel and Tata Steel posted notable YoY volume growth of 10% and 17%, respectively.
  
  
• SAIL reported moderate yet consistent YoY and QoQ volume gains.
  
  
• Jindal Steel saw a slight -2% QoQ dip, but YoY growth remained stable.
  
  
• Jindal Stainless stood out with 15% QoQ volume growth, supported by strong demand in speciality steel categories.
  
  

Volume expansion continues to act as the primary offset to softer price realisations.

Outlook: Steel Companies Positioned to Maintain Stability

With input prices stabilising, protective duties supporting domestic demand, and infrastructure spending remaining strong, steel companies appear well-positioned to manage pricing headwinds.

In the future, key factors to watch include:

• Trends in global steel prices
  
  
• Coking coal price movement
  
  
• Government-led infrastructure spending
  
  
• Demand outlook across the construction, engineering, and automotive sectors
  
  

Despite near-term pricing pressures, the sector’s volume growth and operational resilience indicate a neutral-to-positive medium-term outlook.