Steel Authority of India (SAIL) Q2 25/26 earnings summary

Executive summary

• Revenue from operations for H1 FY26 reached INR 52,625 crore, up from INR 48,672 crore in H1 FY25, driven by a 16.7% increase in sales volume and steady crude steel production at 9.5 million tonnes.

• Profit after tax for H1 FY26 rose to INR 1,112 crore, a 32% increase year-over-year, with EPS at 2.69.

• EBITDA for H1 FY26 was INR 5,754 crore, up 3% year-over-year, with an EBITDA margin of 11.01%.

• Borrowings reduced by over INR 3,000 crore in H1, with debt at INR 26,427 crore as of September 2025.

• Net worth increased to INR 55,973 crore as of September 2025.

Financial highlights

• Standalone net profit for Q2 FY26 was INR 427 crore, with total income from operations at INR 26,704 crore.

• Consolidated net profit for Q2 FY26 was INR 419 crore, with consolidated revenue at INR 26,704 crore.

• Profit before tax for H1 FY26 rose 28% to INR 1,443 crore.

• Finance cost reduced to INR 1,079 crore in H1 FY26 from INR 1,449 crore in H1 FY25.

• Scrap and byproduct sales contributed INR 1,140 crore in Q2, up from INR 869 crore in Q1.

Outlook and guidance

• India expected to lead global steel demand growth at 8.5% in 2025, with domestic demand and pricing projected to improve in Q3 and Q4.

• Sales volume growth targeted for FY 2026 and FY 2027, with debottlenecking and inventory liquidation expected to drive 5-7% volume growth.

• CapEx for FY 2025-26 targeted above INR 7,500 crore, rising to over INR 10,000 crore in FY 2026-27 as ISCO expansion and debottlenecking projects ramp up.

• EBITDA margin expected to improve in Q3 and Q4, potentially reaching 14-15% in Q4.

• Management focused on efficiency improvement, cost rationalization, and product diversification.