Jindal Stainless, Jindal Steel, SAIL, Tata Steel rally up to 4%; here's why

Jindal Steel plans to double its structural steel manufacturing capacity to 2.4 MTPA by mid-2028, aimed at addressing the growing demand for heavy and ultra-heavy structural steel sections.

Steel companies share price today

 

Share price of steel companies Jindal Stainless, Tata Steel, Jindal Steel and Steel Authority of India (SAIL) rallied up to 4 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes in an otherwise subdued market.

 

Among individual stocks, Jindal Stainless stock surged 4 per cent to ₹824 on the back of a near three-fold jump in average trading volumes. The stock was trading close to its 52-week high of ₹825.25 touched on October 29, 2025. A combined 1.17 million equity shares changed hands on the NSE and BSE.

 

Share price of SAIL gained 3.3 per cent to ₹138.60, while Jindal Stainless was up 2 per cent at ₹1,013 and JSW Steel share price 1 per cent at ₹1,101 on the BSE in intra-day trade. In comparison, the BSE Sensex was down 0.21 per cent at 84,519 at 12:13 PM.  FOLLOW LATEST STOCK MARKET UPDATES LIVE

 

What’s driving steel companies' stock prices?

 

Jindal Steel has informed the stock exchanges that it plans to double its structural steel manufacturing capacity to 2.4 million tonnes per annum (MTPA) at its Raigarh facility in Chhattisgarh by mid-2028. The expansion is aimed at addressing the growing demand for heavy and ultra-heavy structural steel sections from infrastructure, energy, and industrial sectors.

 

Jindal Steel announced a significant expansion of its structural steel manufacturing capabilities at its Raigarh facility, under which the company will double its existing structural steel capacity from 1.2 MTPA to 2.4 MTPA by mid 2028. These enhanced capabilities will support growing demand from infrastructure, refinery, power, renewable energy, transmission, and high-rise construction projects, while significantly reducing India’s reliance on imported heavy structural steel sections, Jindal Steel said.

 

Meanwhile, besides, the ongoing cost saving initiatives, including the establishment of a slurry pipeline, procurement of additional rakes for efficient transportation of raw materials/finished goods and the ongoing development of the Paradip port, are expected to push up the operating profitability (OPBITDA)/tonne in the upcoming fiscals, strengthening the company’s operational profile, according to ICRA.

 

The domestic steel industry has seen a record capacity addition of ~15 mt over the past three to four quarters, with another 5.0 mt expected to come on stream by the end of the current fiscal. While ICRA projects steel demand growth to remain healthy at 8 per cent for FY2026, implying incremental demand of around 11-12 mtpa, incremental supply has created a temporary surplus situation resulting in continued pressure on steel prices.   ALSO READ | Cupid hits all-time high as board nods setting up FMCG unit in Saudi Arabia 

Consequently, while domestic HRC prices spiked to ₹52,850 per tonne in April 2025 following the 12 per cent Safeguard Duty (SGD), they corrected to ~₹49,500 per tonne by September 2025 and ~₹46,000 per tonne by November 2025. Domestic HRC prices are currently trading below import parity, reflecting persistent supply-side pressures, ICRA said in note.

 

Meanwhile, rating agency ICRA expects the operating environment for domestic steel producers to remain challenging over the coming quarters as the industry navigates a period of subdued steel prices, stable yet sticky input costs, and a weak external environment.

 

According to ICRA’s latest note on the steel sector, steel industry operating margins for FY2026 are expected to remain largely flat at 12.5 per cent, lower than the earlier expectations of an improvement of 100-120 bps, reflecting continued weakness in steel prices. With muted earnings momentum, industry leverage (TD/OPBDITA) is projected at 3.4 times in FY2026 as against ICRA’s August 2025 estimate of 3.1 times and 3.5 times reported in FY2025, the rating agency said.

 

While near-term profitability is likely to take a hit from low steel prices, Tata Steel’s latest strategic initiatives should have a favorable impact on terminal value of the company, according to analysts.  ALSO READ | Auto stocks in demand: Maruti hits new high; Hero Moto, Ashok Leyland up 2% 

Tata Steel is one of the largest players in India's steel sector and is set to benefit from improving steel price realizations, operating efficiencies, and the strong domestic demand outlook. While near-term challenges persist due to global uncertainty around tariff escalations, the long-term outlook for Tata remains strong. The Indian business is expected to continue its strong performance, and an improvement in the European business performance is likely to support overall earnings, analysts at Motilal Oswal Financial Services said.  ============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.