Steel sector earnings to stay subdued in FY26 amid oversupply: ICRA

ICRA said steelmakers' margins remain under pressure as oversupply drives domestic prices to steep discounts to import parity, and warned of a negative outlook if headwinds persist

India’s steel sector is likely to face subdued earnings through FY26 as domestic prices remain under pressure from oversupply and weak global demand, ICRA has warned in its latest outlook.

 

What is ICRA’s outlook for steel sector earnings in FY26? 

“Earnings are expected to remain subdued as margins have tightened due to softer prices,” said Sumit Jhunjhunwala, vice-president and sector head, ICRA, during the agency’s webinar on steel industry trends and outlook.

 

He said EBITDA per tonne is expected to be around $108 in FY26, which is at the lower end of ICRA’s $100 to $150 per tonne