Steel Authority of India (SAIL) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 was marked by robust Indian steel demand, with finished steel consumption growing over 8% year-over-year, despite global geopolitical tensions and higher input costs.

• Revenue from operations reached ₹26,246 crore, with EBITDA at ₹4,356 crore and PAT at ₹1,636 crore, reflecting improved operational efficiency and cost management.

• Crude steel production was 4.76 million tonnes, with sales volume at 4.16 million tonnes, impacted by planned capital repairs and supply chain disruptions.

• Major capital repairs were advanced at several plants, intentionally reducing production volumes but positioning for improved output in subsequent quarters.

• EBITDA margin improved to 16.7%, the best since FY 2022.

Financial highlights

• Sales turnover for Q1 FY 2027 was ₹26,246 crore, up slightly year-over-year, driven by better realizations despite higher input costs.

• EBITDA grew over 50% to ₹4,356 crore (Q1 FY 2026: ₹2,925 crore); EBITDA per tonne was ₹10,464.

• PAT for Q1 FY 2027 stood at ₹1,636 crore, up over 138% year-over-year.

• PBT was ₹2,159 crore, compared to ₹890 crore in Q1 FY 2026.

• CapEx spend in Q1 was ₹2,575 crore; full-year CapEx target is ₹15,000 crore.

Outlook and guidance

• Full-year volume and CapEx guidance are maintained, with expected growth over last year.

• Q2 NSR is expected to decline by ₹1,000–2,000 per tonne due to monsoon and softer demand, but long product prices may see some recovery.

• Imported coal costs are expected to soften by ₹1,000–2,000 per month in Q2.

• Management expects improved production stability and performance in upcoming quarters due to completed maintenance and robust domestic steel demand.

• Efforts are ongoing to reduce inventory and working capital borrowings.