AM/NS India, the joint venture between ArcelorMittal and Nippon Steel, reported a decline in sales for the June quarter, slipping by nearly 6 per cent year-on-year to US $1.49 billion. EBITDA for the same period dropped approximately 15.6 per cent YoY to US $200 million, down from $237 million a year ago – although the company managed to improve earnings sequentially compared to the preceding quarter.
Despite softening volume and pricing pressures, AM/NS India’s quarterly performance showed modest operational resilience, with sequential EBITDA recovery attributed to lower costs and marginally higher steel spreads.
Industry analysts note that the decline mirrors broader market conditions affecting domestic steel demand and global price competitiveness. Weaker commodity prices and sales volumes weighed on margins, while ongoing infrastructure and construction demand provided some buffer amid challenging market dynamics.
AM/NS India continues to pursue an aggressive expansion agenda. The company is progressing with its Hazira plant upgrade, targeting a capacity expansion to 15 million tonnes by 2026. Plans are also underway for downstream enhancements and long-term capacity growth toward 40 million tonnes, backed by substantial investment and financing strategies.
Management has emphasised that execution of expansion plans, operational efficiency, and cost discipline will be vital to restore profitability. With near-term financial results under pressure, stakeholder focus is intensifying on the JV’s ability to translate capacity investments into scale benefits and higher-margin performance.
Overall, while the beaten-down quarterly numbers point to near-term headwinds, AM/NS India’s long-term trajectory remains intact. With capacity expansion on track and improving market spreads, the key near-term lever will be enhancing EBITDA sequentially while navigating raw material volatility and trade-related uncertainties.
