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JSW Steel may lose 10-15% production capacity.
₹4,500 crore EBITDA dent expected from BPSL liquidation.
Market braces for operational, pricing disruptions.
India’s leading steel producer JSW Steel could suffer a 10-15% production setback and a potential ₹4,500-crore dent in EBITDA following the Supreme Court’s order for the liquidation of Bhushan Power and Steel Limited (BPSL). The verdict, which rejected JSW Steel’s long-pending resolution plan, has cast uncertainty over the integrated operations and production continuity of the key steel asset.
JSW Steel had been eyeing BPSL’s 3.5 million tonnes per annum capacity for strategic growth and capacity expansion. With liquidation now imminent, the asset’s immediate operational future hangs in balance, raising concerns over supply chain disruptions and contractual obligations.
Market analysts estimate that the impact on JSW Steel’s consolidated production volumes could range between 10-15% in the short term, given its heavy operational integration with the BPSL plant. Furthermore, the financial hit could translate to an EBITDA impact of ₹4,500 crore, adding pressure on the company’s profitability outlook for FY26.
The development also rattled investor sentiment, with JSW Steel’s shares slipping during early trade hours today. Industry watchers believe that the liquidation of a strategic asset like BPSL could create market voids and trigger regional price fluctuations.
The company is expected to engage with lenders and legal advisers to explore possible avenues to secure critical assets and minimize operational disruptions.
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