Steel Authority of India Limited (SAIL) has announced its financial results for the second quarter and first half of FY27. The company reported a crude steel production of 4.85 million tons in Q2 FY27, a 4% increase year-on-year. Sales volume for the quarter stood at 5.2 million tons. SAIL has also reaffirmed its sales volume guidance for FY27 at 21 million tons.
SAIL Announces Q2 and H1 FY27 Financial and Operational Highlights
Steel Authority of India Limited (SAIL) has released its financial and operational performance for the second quarter (Q2) and the first half (H1) of the fiscal year 2026-27 (FY27), reporting a notable increase in production and sales volumes amidst a dynamic economic environment.
Q2 FY27 Performance
In Q2 FY27, SAIL achieved a crude steel production of 4.85 million tons, marking a 2% growth over the preceding quarter (Q1) and a 4% growth compared to the same quarter last year (Q2 FY26). Sales volume for the quarter reached 5.2 million tons, showing a significant improvement of 5% over the previous quarter and a substantial 24% over Q2 FY26.
Despite a fall in realizations, the company’s sales turnover in Q2 FY27 increased to INR31,766 crores, up by 20% over Q2 FY26 and 22% over the previous quarter. EBITDA for the quarter stood at INR4,561 crores. Profit Before Tax (PBT) and Profit After Tax (PAT) were reported at INR2,356 crores and INR1,774 crores, respectively.
H1 FY27 Performance
During the first half of FY27 (H1 FY27), crude steel production was 9.6 million tons, with sales volume at 9.33 million tons. Sales turnover grew by 11% over the previous year to INR57,776 crores. Production also saw a growth of around 2% over the previous year.
EBITDA for H1 FY27 was INR8,917 crores, PBT at INR4,515 crores, and PAT at INR3,410 crores. These figures represent a robust growth of 55% in EBITDA, 213% in PBT, and 207% in PAT compared to the corresponding period last year.
Debt Reduction and Financial Health
SAIL demonstrated effective treasury management, reducing its borrowings to INR20,583 crores as of September 30, 2026, down by INR1,146 crores in Q2 and INR1,080 crores in H1. This resulted in an improved debt-equity ratio of 0.34x.
Sales Volume Guidance for FY27
The company has reiterated its sales volume guidance for the full fiscal year FY27 at 21 million tons. This guidance accounts for achieved volumes and expectations for the remaining quarters, considering the generally strong performance in the third and fourth quarters of the fiscal year.
Outlook and Key Initiatives
SAIL highlighted that the investment drive is being significantly influenced by AI technology, which is seen as the future. Projections for calendar year 2026 and 2027 have been improved. The company also mentioned ongoing efforts in inventory reduction, increasing sales, and enhancing high-end production, alongside efforts to reduce borrowings. The company is actively pursuing expansion plans, including increasing capacity from 20 million tons to 35 million tons across four units over the next four years.
Source: BSE
