Dear Shareholders

The past financial year was a period of contrasting realities, a volatile global environment and a resolutely buoyant Indian economy. While geopolitical uncertainties, trade frictions and inflationary pressures weighed on global consumer sentiment and investments, India stood as a rare constant—charting a growth trajectory marked by resilience and structural strength.

Supported by sustained government capital expenditure, a favourable monsoon outlook, personal income tax cuts, and the Reserve Bank of India’s timely pivot towards monetary easing, the domestic environment has become more conducive to consumption-led and private investment-driven growth. Elevated capacity utilisation across industries, coupled with declining interest rates, is already setting the stage for a revival in private sector capex. India is a key beneficiary in the ongoing realignment of global supply chains, a shift that will continue to strengthen its role as a preferred global manufacturing and sourcing destination.

Delivering in a challenging market environment

The year FY 2024-25 was not without challenges with the global economy impacted by geopolitical issues. The global steel market was affected by a surge in Chinese exports. For the second consecutive year, India remained a net importer of steel. This underscored the need for policy support to ensure fair competition. The Government of India’s imposition of a 12% safeguard duty on certain steel products for 200 days was a timely step in this direction and reflects the strategic importance of the domestic steel sector.

Despite these headwinds, we achieved our highest-ever production and sales volumes and operated at 91% capacity utilisation, achieving 98% of our volume guidance. We also reported the highest ever domestic sales which grew 15% y-o-y. Our Value Added and Special Products (VASP) sales also were highest ever and accounted for 62% of total sales volumes. Our consolidated revenue stood at `1,68,824 crore (US$20 billion) and EBITDA was `22,904 crore (US$2.7 billion). These outcomes reflect our underlying strength and the discipline with which we manage both growth and costs.

A significant legal development has occurred concerning our subsidiary, BPSL, which we acquired through the insolvency process under the Insolvency and Bankruptcy Code, 2016 (IBC). On May 2, 2025, the Hon’ble Supreme Court delivered its judgement, inter alia, rejecting the resolution plan submitted by the Company in respect of BPSL, and directing for initiation of liquidation proceedings against BPSL in accordance with law. The Hon’ble Supreme Court also ruled against JSW Steel’s resolution plan and directed that the payments made by the Company to financial creditors, operational creditors and equity contribution be refunded in terms of an earlier order of the Hon’ble Supreme Court dated March 6, 2020. We have carefully reviewed the matter with our legal advisors and are of the firm view that we have strong grounds to seek redressal. The Hon’ble Supreme Court, in its order dated May 26, 2025, has directed that status quo be maintained, pending the disposal of our review petition. The Company has filed a review petition in respect of the judgement dated May 2, 2025 before the Hon’ble Supreme Court on June 25, 2025.

Ramping up capacity with purpose

At JSW Steel, we view the India growth story as a multi-decadal opportunity, especially for steel. India’s steel consumption touched 152 MnT in FY 2024-25, marking the fourth consecutive year of double-digit growth. This growth is broad-based, driven by strong infrastructure demand and steady expansion in manufacturing, defence, renewables and real estate sectors.

As India builds a modern, self-reliant economy, we are determined to contribute with the one resource that underpins all industrial and infrastructure ambitions—steel. We have committed a capital expenditure of `62,000+ crore over the next three years to support our goal of achieving 42 MTPA steelmaking capacity in India by September 2027. This investment will also drive growth in our downstream capabilities, enhance operational efficiency, strengthen raw material security, and accelerate our decarbonisation journey. We aim to reach a capacity of 50 MTPA by FY 2030-31. We are entering a phase where incremental volume growth will be underpinned by cost efficiencies and operational leverage from our brownfield and greenfield assets. Our growth projects incorporate the best available technologies keeping in mind the environment, our communities and employees with an aim to create value for all our stakeholders

Building value through product diversification

As India’s economy modernises, demand for advanced and specialised steel grades that offer high strength, durability and adaptability is expanding. We are actively investing in downstream capacities to serve these emerging needs.

During the year, we commissioned a colour-coated line in Jammu & Kashmir, strengthening our regional presence and bringing us closer to high-potential markets. We are augmenting our downstream portfolio with a new cold rolling mill and zero-spangle line in Khopoli and adding a high-strength automotive-grade galvanising line in Vijayanagar.

These facilities are designed to support India’s evolving requirements in sectors such as automotive, white goods, construction and renewable energy.

We are setting up a greenfield cold rolled grain oriented (CRGO) facility at Vijayanagar in a joint venture with JFE Steel of Japan, which is a strategic foray into a critical segment of electrical steel and will replace imports. Our acquisition of the CRGO facility in Nashik from Thyssenkrupp will grant us immediate market access and also enlarge our presence in this critical segment of electrical steel.