India’s Steel Industry Thrives in Q2 2025
The Indian steel industry had a strong quarter in the 2025 Q2 (July-September) period with significant production, profit, and sales gains. The industry rebounded from a heavy maintenance Q1, which resulted in strong domestic demand, operating capacity utilization above the norm, and overall improved efficiencies of operational performance.
Q2 2025 Financial Performance Highlights
India’s finished steel consumption in India grew by 8.9% YoY, and crude steel production was up by 13.8% YoY, reflecting a strong recovery in both domestic and export-linked demand. Financial highlights reflect that all of the major steelmakers have reported stronger profits than last year and improvements to EBITDA margins relative to last year. Profits were largely driven by the combination of improved realizations and cost control. However, few companies are likely to announce their quarterly performance, but it has been anticipated that there would be similar results.
Key Financials
Company | Q2 Net Profit (₹Cr) | YoY Change | Q2 EBITDA (₹ Cr) | YoY Change | EBITDA Margin | Revenue ₹ Cr |
JSW Steel | 1,646 | +270% | 7,356 | +25% | 16.3% | 45,152 |
Tata Steel | 2,078 | +197% | 7,902 | +20% | 14.8% | 53,467 |
JSPL | 1,226 | +42% | 3,851 | +40% | 24.3% | 15,846 |
SAIL | 890 | +170% | 3,280 | +18% | 12.1% | 24,450 |
EBITDA margins have expanded sequentially for all major producers, which was mainly driven by improved pricing, higher volumes, and lower raw material costs.
Production and Sales Performance: Q1 vs Q2 2025
Company | Q1 Crude Steel (MT) | Q2 Crude Steel (MT) | QoQ Change | Q1 Sales (MT) | Q2 Sales (MT) | QoQ Change |
JSW Steel | 7.26 | 7.90 | +9% | 6.69 | 7.34 | +10% |
Tata Steel | 5.25 | 5.67 | +8% | 4.94 | 5.56 | +12% |
SAIL | 4.68 | 4.76 | +2% | 4.01 | 4.10 | +2% |
With continued strong production and sales performance in Q2, JSW Steel and Tata Steel returned to double-digit growth in sales volumes, while SAIL reported a possible modest improvement; however showing that underlying demand and sentiment may improve.
Long and Flat Steel Growth
Company | Q1 Longs (MT) | Q2 Longs (MT) | Change | Q1 Flats (MT) | Q2 Flats (MT) | Change |
JSW Steel | 2.50 | 2.80 | +12% | 4.12 | 4.50 | +9% |
Tata Steel | 1.03 | 1.20 | +16% | 3.91 | 4.36 | +12% |
SAIL | 2.44 | 2.50 | +2% | 1.57 | 1.60 | +2% |
Flat products (e.g., HR/CR coils and coated steels) continue to experience robust growth in the automotive and appliance sectors, while long products saw their growth bolstered by an increase in construction and infrastructure.
Regional and Plant-Level Production Growth
JSW Steel:
Vijayanagar: ~3.6 MT ( up by 6% QoQ)
Dolvi: ~2.5 MT ( up by 9% QoQ)
Salem & others: ~1.8 MT ( up by20% QoQ)
Tata Steel (India):
Jamshedpur: ~2.0 MT (up by 5% QoQ)
Kalinganagar: ~1.7 MT (up by 13% QoQ)
Neelachal: ~0.6 MT (up by 50% QoQ)
SAIL:
Bhilai: ~1.1 MT (up by 2% QoQ)
Bokaro: ~1.0 MT (up by 3% QoQ)
Rourkela: ~1.1 MT (up by 1% QoQ)
The expansion in the regions indicates a recovery, and in particular strong at Dolvi, Kalinganagar, and Neelachal, which have produced higher output after they resumed expansions and maintenance activities.
Conclusion
The Indian steel sector has seen much improved performance for Q2 FY25 with improved EBITDA margins and greater production performance, and improved realizations from JSW, Tata, Jindal, and SAIL. The outlook for Q3 remains positive, with domestic demand and infrastructure stimulus.
