As JSW Steel expands capacity, SC setback may be just a minor bump

Loss of BPSL could trim JSW Steel's total steel production capacity by 12%

- Krishna Kant

JSW Steel Ltd is expected to see a modest impact on earnings and balance sheet from the potential loss of Bhushan Power & Steel Ltd (BPSL), after the Supreme Court invalidated its acquisition under the Insolvency and Bankruptcy Code (IBC). The move may, however, delay JSW Steel's growth trajectory by a few years.

BPSL contributed 8 per cent JSW Steel's consolidated net profit and 12.5 per cent consolidated net sales in FY24. It also accounted for 11.5 per cent of JSW Steel's total assets at the end of the financial year.

The setback could trim JSW Steel's total steel production capacity by nearly 12 per cent. BPSL had a crude steel capacity of 3.5 million tonnes (mt) as of March 2024, making up 11.8 per cent of JSW Steel's consolidated capacity of 29.7 mt per annum.