Debasis Mohapatra
Bengaluru, 21 Feb 2026
Tata Steel’s strategic expansion plan augurs well for the leading steel manufacturer to cash in the growing demand for steel in India. Borkerage firm, Motilal Oswal said in a recent report that capacity expansion at company’s Kalinganagar plant along with ramping up capacity at Neelachal Ispat Nigam Ltd (NINL) puts it on a good stead to improve its earnings in the coming quarters.
“TATA is strategically executing capacity expansion to capitalize on India’s robust steel demand. TATA plans to scale its capacity from around 26.5 million tonne per annum (MTPA) currently to about 40 MTPA over the medium term, with an annual capex commitment of Rs 16,000 crore,” the Motilal Oswal report.
The Tata Group company has already commissioned 5 MTPA integrated capacity at Kalinganagar and it is planning to add another 5 MTPA, bringing the total Kalinganagar capacity to 13mtpa, the report added.
“Other key expansions include scaling Neelachal Ispat Nigam Ltd (NINL) from 1 MTPA to 5.8 MTPA. The board approved a 4.8 MTPA expansion under Phase-I of its long-term plan with expected timeline of 3-3.5 years. This expansion strengthens TATA’s portfolio of long products, enhancing its presence in construction and retail markets, which continue to demonstrate robust domestic growth,” the brokerage report said.
The company is also commissioning a 0.75 MTPA scrap-based EAF (Electric Arc Furnace) in Ludhiana by FY27 focused on high-margin retail products, catering to customers within a 300 km radius, the report added.
India’s steel output is growing at a healthy pace with a 6% CAGR seen in the last five years. The country is targeting a crude steel capacity of 300 MTPA by FY31. “We expect India’s steel consumption to sustain at about 7% CAGR over FY25-27, driven by capacity expansion and robust demand,” the report said.
(Source: The brokerage report has been sourced from Trendlyne)
