Tata Steel Outshines JSW in Q3 FY25 with Stronger Margins and Cost Efficiencies

Released on 27 Jan 2025:

Tata Steel delivered a robust performance in Q3 FY25, outperforming JSW Steel in profitability despite price pressures. The company’s India operations posted an EBITDA per ton of $171.34, significantly higher than JSW Steel’s $100.17.

Tata Steel’s EBITDA margin rose to 13.34%, compared to JSW Steel’s 13.48%, demonstrating its ability to manage costs efficiently. While global operations struggled, Tata’s India business remained resilient, benefiting from lower raw material costs due to captive iron ore mines and a strong sales mix of high-margin automotive and infrastructure steel

Despite a 12.9% YoY drop in average selling price (ASP) per ton to $746.12, Tata Steel’s cost advantages and pricing power helped maintain profitability. Meanwhile, JSW Steel faced higher input costs and lower realizations, dragging down its earnings.

Looking ahead, Tata Steel expects demand to improve with government-led infrastructure projects. However, global steel price volatility and rising imports into India remain key risks. With better cost control and a premium product mix, Tata Steel is well-positioned to navigate market challenges and sustain its competitive edge over JSW Steel.