SAIL Reports ₹1,636 Crore Profit in Q1 FY27 as Margins Improve

Steel Authority of India Limited (SAIL) reported a sharp improvement in profitability during the first quarter of Financial Year 2026–27, with standalone profit after tax rising 138.65% year-on-year to ₹1,636 crore.

The company’s sales turnover remained broadly stable at ₹26,010 crore during the quarter, compared with ₹25,731 crore in the corresponding period of the previous year. The improvement in profit was supported by better price realisations, operating efficiencies and tighter cost management.

SAIL’s operating EBITDA increased nearly 49% year-on-year to ₹4,356 crore from ₹2,925 crore in the first quarter of Financial Year 2025–26. As a result, the company’s EBITDA margin expanded to 16.6%, compared with 11.29% a year earlier.

The company’s crude steel production stood at 4.757 million tonnes during the quarter, slightly lower than 4.85 million tonnes in the corresponding period. SAIL moderated production while carrying out scheduled repairs and maintenance at its plants.

The company said its focus on planned maintenance and operational efficiency was aimed at strengthening production capabilities and supporting more stable operations over the longer term.

SAIL’s balance sheet also remained relatively stable during the quarter. Total IndAS debt stood at ₹31,970 crore, while the company reported a debt-to-equity ratio of 0.54 times. Net worth stood at ₹59,720 crore. Its interest coverage ratio was 4.8 times, while the Debt Service Coverage Ratio stood at 1.66 times.

The latest quarterly performance follows a strong operating showing in August. SAIL recorded its highest-ever August crude steel production at 1.68 million tonnes, an 8% increase from the year-earlier period. Total sales also increased 13% year-on-year to 1.87 million tonnes during the month.

The steelmaker is continuing to focus on capital expenditure, operational efficiency and capacity utilisation as domestic steel demand remains supported by infrastructure, railways and other development projects.

SAIL has set a capital expenditure target of ₹15,000 crore for the full financial year. The company is also scheduled to hold investor and analyst meetings on September 23 and 24, ahead of its 54th Annual General Meeting on September 24.

With steel demand remaining firm in the domestic market, the company’s performance in the coming quarters will depend on steel realisations, raw material costs, production recovery following maintenance and broader market conditions.