Steel Authority of India Limited (SAIL) has released the transcript of its Q1 FY27 earnings conference call. The call, held on July 28, 2026, featured management discussing the company’s performance, economic scenario, and future outlook. Key highlights include production figures, sales volumes, EBITDA growth, and capital expenditure plans. The transcript also addresses cost inflation, market dynamics, and strategic initiatives for the coming quarters.
SAIL Discusses Q1 FY27 Performance and Outlook
Steel Authority of India Limited (SAIL) has provided a detailed transcript of its Q1 FY27 earnings conference call, which took place on July 28, 2026. The discussion involved Chairman and Managing Director, Mr. Ashok Panda, and covered various aspects of the company’s recent performance and strategic direction.
Economic and Market Environment
Management noted that the global economic scenario in Q1 FY27 was impacted by geopolitical situations in the Middle East, affecting fuel and input supplies. Despite these challenges, India’s economic growth projections remained robust between 6.4% and 7.2%. The Indian steel industry continued to experience strong demand, with consumption growing by over 8% year-on-year. However, production growth was more moderate at around 3%, influenced by higher imports compared to exports, leading to a net import of approximately 0.4 to 0.5 million tonnes.
Operational and Financial Highlights
SAIL’s crude steel production for Q1 FY27 stood at 4.8 million tonnes, a slight decrease from 4.9 million tonnes in the previous year, attributed to advanced capital repairs at key plants like IISCO, Durgapur, and Bokaro Steel Plants. Sales volume was 4.2 million tonnes, a reduction of 7-8% year-on-year, with a resulting inventory increase of 0.2 million tonnes. Despite input cost pressures, the company reported strong profitability, with EBITDA growing by over 50% to INR4,356 crores (Q1 FY27) from INR2,925 crores (CPLY). The EBITDA margin reached 16.7%, and EBITDA per tonne crossed INR10,000, reaching INR10,464. Profit Before Tax (PBT) and Profit After Tax (PAT) saw a growth of around 150%, with PBT at INR2,159 crores and PAT at INR1,636 crores.
Capital Expenditure and Debt Management
For the current year, SAIL is planning a capital expenditure target of INR15,000 crores, with plans to increase this to over INR20,000 crores in the next 2-3 years, and potentially INR25,000-26,000 crores in the following years. The company is focused on deleveraging efforts, with the debt equity ratio reduced to 0.36. Total debt stood at INR21,729 crores at the end of Q1 FY27, with efforts underway to further reduce working capital borrowings by managing inventory.
Future Outlook and Initiatives
Looking ahead, SAIL anticipates challenges in Q2 due to the monsoon season but aims to avoid inventory build-up. The company is also focusing on increasing production from its captive mines. Management expressed optimism regarding future demand and price trends, particularly for long products, while also noting potential cost reductions in imported coal prices. Initiatives to improve cost efficiency are ongoing, with projected reductions in production costs by INR2,000 to INR3,000 per tonne by FY29 through new facilities.
The call also touched upon various operational aspects, including product mix, coking coal sourcing, railway price revision, and the impact of global events on raw material costs.
Source: BSE
