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, reflecting strong operational performance and an 11% year-over-year increase.

• 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, with PBT up 44%, driven by operational efficiency, inventory liquidation, and cost optimization.

• Debt reduced by ₹8,150 crore, with cost of borrowings dropping from 7.3% to 6.2% and debt-equity ratio improving to 0.37–0.55.

• Balance sheet for FY 2025-26 is free from audit qualifications for the first time in decades.

Financial highlights

• Q4 crude steel production rose 4% year-over-year to 4.9 million tonnes; sales volume up 4% to 5.3 million tonnes.

• Standalone revenue from operations for FY 2025-26: ₹110,810 crore (up from ₹102,478 crore year-over-year).

• EBITDA margin improved to 11.95% in FY'26 from 11.6% in FY'25; operating margin for FY 2025-26: 11.86%.

• PAT increased to ₹3,233 crore in FY'26 from ₹2,148 crore in FY'25; consolidated PAT for FY 2025-26: ₹3,373 crore.

• Inventory reduced by nearly 1 million tonnes, supporting lower borrowings and finance costs.

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 as expansion projects ramp up.

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

• Focus on increasing value-added and special steel products, with further margin improvement expected despite higher coal prices.

• Employee count to reduce by 3,400–3,500 annually, with VRS targeting an additional 500–1,000 reductions.