Steel Authority of India Limited (SAIL)
₹170.95 +0.39% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Steel Authority's revenue was ₹26,246 Cr (+1.2% year on year, -14.8% on the previous quarter), and net profit ₹1,644 Cr (+120.8% year on year); the operating margin was 15.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹26,246 | +1.2% | -14.8% |
| Operating profit | ₹4,153 | +50.0% | -5.8% |
| Net profit | ₹1,644 | +120.8% | -10.4% |
| EPS (₹) | 3.98 | +121.1% | -10.4% |
| Operating margin | 15.8% | — | — |
SAIL delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 34.38% of the SAIL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 40.8%. That is close to its usual level. Volume was 0.5 times its average, well below normal. In SAIL futures, open interest fell 0.20% while the futures price fell 1.13%: long unwinding (longs closing out).
Delivery in the last 5 sessions: 37.8% · 36.0% · 48.0% · 36.0% · 34.4%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
CareEdge Ratings has revised the outlook on SAIL's long-term bank facilities of ₹14,850.00 crore to 'Positive' from 'Stable' while reaffirming the rating at 'CARE AA'. The short-term bank facilities of ₹48,250.00 crore and commercial paper of ₹8,000.00 crore were reaffirmed at 'CARE A1+'. The revision is backed by improving operating profitability, with PBILDT per tonne rising to ₹9,974 in Q1FY27 compared to ₹6,998 in Q1FY26. Furthermore, overall gearing improved from 0.77x in FY25 to 0.63x in FY26 as total debt reduced to ₹35,788 crore.
- Outlook on ₹14,850.00 crore long-term bank facilities revised from 'Stable' to 'Positive' with rating reaffirmed at 'CARE AA'
- Short-term facilities of ₹48,250.00 crore and Commercial Paper of ₹8,000.00 crore reaffirmed at 'CARE A1+'
- PBILDT per tonne improved from ₹6,998 in Q1FY26 to ₹9,974 in Q1FY27
- Total debt declined to ₹35,788 crore in FY26 from ₹41,740 crore in FY25, bringing gearing down to 0.63x from 0.77x
- Planned capacity expansion to ~35 MTPA by FY31-FY32 involves an estimated capex of ₹1-1.20 lakh crore
Steel Authority of India Limited (SAIL) announced the cessation of Shri M.B. Balakrishnan as Company Secretary and Compliance Officer following his superannuation on September 30, 2026. The Board approved the appointment of Shri Mohit Malpani, ED(F&A), as the new Company Secretary and Compliance Officer effective October 2026. Mr. Malpani joined SAIL in August 1991 and previously led finance divisions across major plants and strategic expansion projects. This is a routine secretarial transition at the Maharatna PSU.
- Shri M.B. Balakrishnan ceased to be Company Secretary & Compliance Officer on September 30, 2026 due to superannuation
- Shri Mohit Malpani appointed as ED(F&A) & Company Secretary w.e.f. October 2026
- New appointee joined SAIL in August 1991 with extensive finance leadership across multiple plants
- Transition follows SEBI Listing Obligations & Disclosure Requirements Regulation 6(1)
Steel Authority of India Limited (SAIL) announced the cessation of Shri M.B. Balakrishnan as Company Secretary and Compliance Officer following his superannuation on September 30, 2026. The Board approved the appointment of Shri Mohit Malpani, ED(F&A), as the new Company Secretary and Compliance Officer effective October 2026. Mr. Malpani joined SAIL in August 1991 and previously led finance divisions across major plants and strategic expansion projects. This is a routine secretarial transition at the Maharatna PSU.
- Shri M.B. Balakrishnan ceased to be Company Secretary & Compliance Officer on September 30, 2026 due to superannuation
- Shri Mohit Malpani appointed as ED(F&A) & Company Secretary w.e.f. October 2026
- New appointee joined SAIL in August 1991 with extensive finance leadership across multiple plants
- Transition follows SEBI Listing Obligations & Disclosure Requirements Regulation 6(1)
Steel Authority of India Limited (SAIL) announced the voting results of its 54th Annual General Meeting held on September 24, 2026. All eight ordinary resolutions were passed by shareholders with requisite majorities, including the adoption of FY26 financial statements (96.41% in favour) and the declaration of a final dividend of Rs 2.35 per equity share (98.27% in favour). In addition, appointments of Whole Time Directors Shri Priya Ranjan and Shri T.N. Natarajan were ratified with 92.86% approval. Total voter turnout stood at 87.11% of outstanding shares across voting resolutions.
- Final dividend of Rs 2.35 per equity share of face value Rs 10 approved with 98.27% votes in favour
- Adoption of FY26 Standalone and Consolidated Audited Financial Statements approved with 96.41% votes in favour
- Appointments of Whole Time Directors Shri Priya Ranjan and Shri T.N. Natarajan passed with 92.86% approval each
- Total voting participation reached 87.11% of outstanding shares (3,59,79,25,039 votes polled out of 4,13,05,25,289 shares)
Steel Authority of India Limited (SAIL) has entered into a Memorandum of Understanding (MoU) with Bharat Coking Coal Limited (BCCL) on September 25, 2026. The partnership aims to jointly develop and operate the Indikatta Ramnagore Coal Block (held by SAIL) and the East of Damagoria (Kalyaneshwari) Coal Block (held by BCCL) in West Bengal. This initiative is designed to enhance domestic sourcing of coking coal, a critical raw material currently subject to global price volatility. Detailed financial commitments, capital expenditure, and output timelines were not disclosed in the filing.
- MoU signed on September 25, 2026, between SAIL and BCCL
- Covers joint development and operation of 2 coal blocks in West Bengal
- Involves SAIL's Indikatta Ramnagore Coal Block and BCCL's East of Damagoria Coal Block
- Aimed at boosting domestic coking coal production to reduce import reliance
- Project capex and operational timelines not disclosed in the document
Steel Authority of India Limited (SAIL) shared an updated investor presentation covering Q1 FY27 performance. Total revenue from operations stood at ₹26,246 crore, while EBITDA surged to ₹4,356 crore with margins expanding to 16.7% compared to 11.4% in Q1 FY26. Profit after tax rose sharply to ₹1,636 crore from ₹685 crore in Q1 FY26, driven by higher EBITDA/tonne of ₹10,464. Total steel sales reached 4.163 MT with crude steel production at 4.757 MT, while IndAS debt stood at ₹31,970 crore.
- Q1 FY27 EBITDA reached ₹4,356 crore with an EBITDA margin of 16.7% (EBITDA/tonne at ₹10,464)
- PAT surged to ₹1,636 crore in Q1 FY27 compared to ₹685 crore in Q1 FY26
- Crude steel production stood at 4.757 MT and total sales volume reached 4.163 MT
- IndAS Debt stood at ₹31,970 crore with a Debt-to-Equity ratio of 0.54 and interest coverage of 4.80
Steel Authority of India Limited (SAIL) has informed exchanges that its management will participate in non-deal roadshows with prospective investors. The meetings are scheduled to take place in Mumbai on September 23, 2026, and September 24, 2026. This is a standard corporate interaction and does not involve material disclosures or fundraising announcements.
- Management participating in non-deal roadshows with prospective investors
- Roadshows scheduled for September 23, 2026 and September 24, 2026
- Meetings to be held in Mumbai
India Ratings and Research has upgraded SAIL's Long-Term Issuer Rating and debt facilities to 'IND AA+/Stable' from 'IND AA', while affirming its short-term rating at 'IND A1+'. The upgrade covers Rs 22,000 Cr (INR 220,000 million) of bank loan facilities and Rs 1,000 Cr of public deposits, reflecting improved operational efficiency, debt reduction, and better working capital management. In FY26, sales volumes grew to 19.9 MTPA (up from 17.9 MTPA in FY25), and 1QFY27 EBITDA per tonne reached INR 9,887 with a 15.8% margin.
- Long-term issuer rating and Rs 22,000 Cr bank loan facilities upgraded to 'IND AA+' from 'IND AA' with a Stable outlook.
- Commercial paper rating of Rs 8,000 Cr affirmed at 'IND A1+', and Rs 14 Cr bonds withdrawn following full repayment.
- Net working capital cycle contracted sharply to 76 days in FY26 compared to 114 days in FY25.
- 1QFY27 operational performance strengthened with EBITDA of INR 42 billion and EBITDA/t of INR 9,887.
- SAIL faces scheduled debt repayments of INR 40.4 billion in FY27 and INR 32.1 billion in FY28, with DSCR expected at a comfortable 2x-3x.
Steel Authority of India Limited (SAIL) announced that Shri Ashish Chatterjee, Additional Secretary and Financial Advisor in the Ministry of Steel, has ceased to hold charge as Government Nominee Director on the company's Board effective August 24, 2026. This change is pursuant to an order issued by the Ministry of Steel dated August 27, 2026. The government holds a 65.0% promoter stake in the PSU steel major. This is a routine bureaucratic adjustment of nominee directorship and carries no operational or financial impact.
- Shri Ashish Chatterjee ceased to hold the charge of Government Nominee Director w.e.f. August 24, 2026
- Action taken pursuant to Ministry of Steel, Government of India Order dated August 27, 2026
- Ashish Chatterjee serves as Additional Secretary and Financial Advisor, Ministry of Steel
Steel Authority of India Limited (SAIL) has scheduled its 54th Annual General Meeting (AGM) for Thursday, September 24, 2026. The company has fixed Wednesday, September 30, 2026, as the record date for determining shareholder eligibility for the recommended final dividend of Rs 2.35 per equity share (23.50% of face value Rs 10). Subject to shareholder approval at the AGM, the final dividend will be paid within 30 days of approval.
- 54th AGM scheduled for September 24, 2026 at 10:30 AM via Video Conferencing.
- Record date for FY 2025-26 final dividend fixed as September 30, 2026.
- Final dividend recommended is Rs 2.35 per equity share of Rs 10 each (23.50%).
- Dividend payout to be completed within 30 days from shareholder approval at the AGM.
Steel Authority of India Limited (SAIL) has scheduled its 54th Annual General Meeting (AGM) for September 24, 2026, and fixed September 30, 2026, as the record date for determining eligibility for the FY26 final dividend. The Board has recommended a final dividend of Rs 2.35 per equity share of face value Rs 10 (23.50% of paid-up equity share capital). Upon shareholder approval at the AGM, the dividend will be credited within 30 days of approval.
- Final dividend recommended at Rs 2.35 per equity share of face value Rs 10 (23.50%).
- Record date for dividend entitlement established as Wednesday, September 30, 2026.
- 54th Annual General Meeting to be conducted on Thursday, September 24, 2026 via VC/OAVM.
- Dividend payment to be completed within 30 days of shareholder approval at the AGM.
SAIL has responded to exchange queries regarding media reports of a potential 5% FPO in FY27. The company confirmed it is exploring various fundraising routes, including FPO and QIP, to support its massive capacity expansion goals. This fundraise is intended to fuel the company's target of reaching 35 MnTPA capacity by FY32, which includes a significant ₹40,000 Cr investment at the IISCO plant. While the company labels these plans as 'preliminary,' a 5% equity issuance at current market prices would raise approximately ₹3,575 Cr.
- Rumored 5% FPO would represent approximately ₹3,575 Cr based on the current market cap of ₹71,497 Cr
- Company is pursuing a long-term capacity expansion from 20 MnTPA to 35 MnTPA by FY32
- A major ₹40,000 Cr investment is earmarked for the IISCO plant expansion to add 4.60 MnTPA
- Current debt stands at ₹31,922 Cr with a Debt-to-Equity ratio of 0.55
- Promoter (Government of India) holding currently remains stable at 65.0%
SAIL has officially clarified that it is exploring various fund-raising options, including a Follow-on Public Offer (FPO) or Qualified Institutional Placement (QIP), to meet its capital expenditure requirements. This follows an exchange query regarding market rumors on August 10, 2026. The company stated these plans are currently in a preliminary stage. With a massive planned expansion to 35 MnTPA by FY32 and a specific Rs 40,000 Cr investment at IISCO, the fundraise is critical for maintaining its balance sheet while pursuing growth.
- SAIL confirmed exploration of FPO and QIP routes for raising funds on August 10, 2026
- The fundraise is intended to support the company's long-term capex needs, including the Rs 40,000 Cr IISCO expansion
- Current crude steel capacity stands at ~20 MnTPA with a target of 35 MnTPA by FY32
- The company maintains a promoter holding of 65.0% as of March 2026, providing room for equity dilution
- Debt levels currently stand at Rs 31,922 Cr against a net worth of Rs 58,196 Cr
SAIL reported a strong Q1 FY27 with EBITDA rising 50% YoY to ₹4,356 crore, driven by a significant jump in Net Sales Realization (NSR) which rose by ₹5,000 per tonne compared to Q4 FY26. Although sales volumes fell 7-8% YoY to 4.2 MT due to planned maintenance shutdowns at major plants, EBITDA margins improved to 16.7%. The company maintained its aggressive ₹15,000 crore annual capex guidance, representing ~21.5% of its market cap, while keeping debt stable at ₹21,729 crore. Management is targeting a cost reduction of ₹2,000 per tonne through operational efficiencies in the current fiscal.
- EBITDA per tonne crossed the ₹10,000 benchmark to reach ₹10,464 in Q1 FY27.
- Net Sales Realization (NSR) improved to ₹57,100 per tonne from ₹52,000 in the previous quarter.
- Planned maintenance at IISCO, Durgapur, and Bokaro led to a slight crude steel production dip to 4.8 MT.
- FY27 Capex target set at ₹15,000 crore, with ₹2,575 crore already deployed in Q1.
- Debt-to-Equity ratio improved to 0.36, with total borrowings at ₹21,729 crore as of June 30, 2026.
SAIL has clarified that it signed a legally and commercially non-binding MoU with Indonesia's Krakatau Steel on July 6, 2026, to explore a Joint Venture for stainless steel slab manufacturing. The clarification follows a news report citing a $350 million (approx. ‡2,900 cr) investment, which SAIL noted was already in the public domain since early July 2026. The potential investment is relatively small for SAIL, representing approximately 2.6% of its TTM revenue and 4.1% of its market capitalization. The company maintains that no new unannounced material information exists regarding recent share price movements.
- MoU signed on July 6, 2026, with Krakatau Steel, Indonesia, to explore a stainless steel slab JV.
- Reported investment value in media is $350 million (approx. ‡2,900 cr).
- MoU is explicitly stated as legally and commercially non-binding at this stage.
- Clarification issued in response to an Exchange query regarding a repeat news article published on July 29, 2026.
- SAIL's TTM revenue stands at ‡1,10,810 cr, making the potential investment ~2.6% of annual turnover.
Financial Performance
Revenue Growth by Segment
Revenue from operations reached INR 52,625 Cr in H1 FY26, representing an 8.12% growth compared to INR 48,672 Cr in H1 FY25. Total operating income for FY25 was INR 1,02,478 Cr.
Geographic Revenue Split
Operations are geographically diversified across India with five integrated steel plants in Bhilai, Durgapur, Rourkela, Bokaro, and Burnpur. The marketing network covers virtually all districts in India through 37 Branch Sales Offices and 37 Stockyards.
Profitability Margins
Profit After Tax (PAT) for H1 FY26 was INR 1,112 Cr, a 31.75% increase from INR 844 Cr in H1 FY25. FY25 PAT was INR 2,147.96 Cr. Profitability is sensitive to coking coal prices, which caused a 7% decline in profitability per tonne in FY25.
EBITDA Margin
EBITDA for H1 FY26 was INR 5,754 Cr (10.93% margin), up 2.88% from INR 5,593 Cr (11.49% margin) in H1 FY25. The slight margin compression is attributed to volatility in global steel pricing and raw material costs.
Capital Expenditure
SAIL has announced a phase-wise expansion to increase crude steel capacity to 35 MnTPA by FY32. The first phase at IISCO Steel Plant involves a capex of INR 40,000 Cr (inclusive of maintenance) to be funded in a 50:50 debt-equity mix, with major deployment starting FY27.
Credit Rating & Borrowing
SAIL maintains a strong credit profile supported by its 'Maharatna' status and 65% GoI ownership. It has access to fund-based bank facilities of INR 10,000 Cr, which remained largely unutilized, providing high financial flexibility.
Operational Drivers
Raw Materials
Key raw materials include Iron Ore (100% captive sourcing) and Coking Coal (highly volatile pricing). Coking coal price spikes significantly impact margins as seen in the 7% profitability decline in FY25.
Import Sources
Iron ore is sourced from captive mines in Jharkhand, Odisha, and Chhattisgarh. Coking coal is largely imported to meet requirements, exposing the company to global price volatility.
Key Suppliers
Captive mines provide 100% of iron ore requirements. Coking coal is procured from various international suppliers, though specific company names are not disclosed in the provided documents.
Capacity Expansion
Current crude steel capacity is ~20 MnTPA. Planned expansion targets 35 MnTPA by FY32. The IISCO plant expansion will add 4.60 MnTPA by the end of FY29.
Raw Material Costs
Raw material prices, particularly coking coal, are volatile. In FY25, higher coking coal prices led to a 7% decline in profitability per tonne despite a 4.04% CAGR in sales volume since FY21.
Manufacturing Efficiency
The company operates at near full capacity. In FY25, it produced 20.31 MT of hot metal, 19.17 MT of crude steel, and 17.94 MT of saleable steel.
Logistics & Distribution
Distribution is managed through a dedicated Transport and Shipping department and four regional offices (Southern, Western, Eastern, and Northern).
Strategic Growth
Expected Growth Rate
4.04%
Growth Strategy
Growth will be achieved by expanding crude steel capacity from 20 MnTPA to 35 MnTPA by FY32. This includes a INR 40,000 Cr investment at IISCO and de-bottlenecking initiatives to convert semis into higher-margin saleable steel.
Products & Services
Primary products include hot metal, crude steel, and saleable steel. Value-added steel products (for industrial and mechanical applications) comprised 55.30% of total saleable steel in FY25.
Brand Portfolio
SAIL
New Products/Services
Focus is on increasing the share of value-added steel products, which currently represent 55.30% of the product mix, to improve overall realizations and margins.
Market Expansion
SAIL is expanding its retail footprint by adding 41 new distributors in the 1-Tier channel and strengthening its B2C presence through a network of ~5,200 dealers.
Market Share & Ranking
SAIL is one of the largest integrated steel producers in India with a 'Maharatna' status.
Strategic Alliances
SAIL has multiple JVs including NTPC-SAIL Power Company, International Coal Ventures, Bastar Railway Private Ltd, and mjunction services limited.
External Factors
Industry Trends
The industry is shifting toward a low-carbon economy. SAIL is positioning itself through digitalization, SAP GRC deployment, and a commitment to sustainable profitability through product diversification.
Competitive Landscape
SAIL competes with other large domestic integrated players and imports. Its competitive edge lies in its integrated value chain and government linkages.
Competitive Moat
Moat is derived from 100% captive iron ore mines, 'Maharatna' status providing financial autonomy, and strong GoI parentage (65% stake) which ensures access to low-cost capital.
Macro Economic Sensitivity
Highly sensitive to domestic infrastructure demand and global steel cycles. Robust domestic demand has allowed the company to operate at near full capacity.
Consumer Behavior
Rising demand for value-added steel in industrial and mechanical applications is driving SAIL's shift toward a 55.30% value-added product mix.
Geopolitical Risks
Global steel market volatility and international coking coal price fluctuations are primary external risks.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013, SEBI LODR 2015, and environmental norms set by the Ministry of Environment, Forest and Climate Change (MoEF&CC).
Environmental Compliance
SAIL is compliant with ISO 14001:2015 and voluntarily subscribes to the Charter on Corporate Responsibility for Environmental Protection (CREP).
Taxation Policy Impact
Effective tax rate is approximately 23% based on H1 FY26 PBT of INR 1,443 Cr and PAT of INR 1,112 Cr.
Legal Contingencies
SAIL faces a potential retrospective tax liability of INR 2,687 Cr following a Supreme Court judgment on state mining taxes (Jharkhand: INR 831 Cr; Odisha: INR 1,856 Cr).
Risk Analysis
Key Uncertainties
Key risks include the cyclicality of the steel industry, volatility in coking coal prices (which impacted FY25 margins by 7%), and the INR 2,687 Cr retrospective mining tax liability.
Geographic Concentration Risk
Production is concentrated in Eastern India (Jharkhand, Odisha, West Bengal, Chhattisgarh), while sales are distributed nationally through 37 branch offices.
Third Party Dependencies
Dependency on international coking coal markets for raw materials and a network of 58 Tier-1 distributors for B2B sales.
Technology Obsolescence Risk
Mitigated through the deployment of SAP Governance, Risk, and Compliance (GRC) modules and ongoing digitalization of manufacturing processes.
Credit & Counterparty Risk
Maintains a high security cover of 817.24x for its debt securities as of September 2025, indicating very low counterparty risk for lenders.
