Steel Authority of India (SAIL) Q4 25/26 earnings summary

Executive summary

• Achieved record crude steel production of 19.43–19.434 million tonnes and sales volume of 19.93 million tonnes in FY 2025-26, up 11.4% year-over-year, reflecting strong operational performance.

• Revenue from operations reached ₹110,810 crore (Rs. 109,966 crore), up from ₹102,478 crore, with sales turnover nearing INR 1,10,000 crores, and EBITDA at ₹13,146 crore.

• PAT surged 50.5% to ₹3,233 crore, driven by operational efficiency, inventory liquidation, and cost optimization.

• Debt reduced by ₹8,150 crore, with finance costs and debt-equity ratio improving to 0.37–0.55.

• Balance sheet is now free of audit qualifications for the first time in decades.

Financial highlights

• Q4 FY 2026 crude steel production rose 4% to 4.9 million tonnes; sales volume up 4% to 5.3 million tonnes.

• Standalone revenue for FY 2025-26: ₹110,810 crore; PAT: ₹3,233 crore; EBITDA: ₹13,146 crore.

• EBITDA margin improved to 11.95% in FY'26 from 11.6% in FY'25; net profit margin at 2.92%.

• Inventory reduced by nearly 1 million tonnes, supporting working capital and debt reduction.

• Employee count reduced by 3,400, lowering remuneration costs by INR 200-300 crores.

Outlook and guidance

• FY 2026-27 sales volume target set at 22 million tonnes, including 0.6-0.7 million tonnes from RINL.

• CapEx guidance: INR 15,000 crores for FY 2026-27, rising to over INR 20,000 crores in subsequent years.

• Management expects continued growth in domestic steel consumption, supported by infrastructure development and robust GDP growth projections of 6.5–7.4%.

• Employee count expected to decline by 3,400-3,500 annually, with some offset from new hires and VRS.

• New capacity additions expected post-2030; near-term growth from debottlenecking and operational efficiency.