Steel Authority of India (SAIL) announced an 8% increase in revenue from operations, reaching ₹52,625 crore in H1 FY26. Crude steel production remained steady at 9.5 million tons. Sales volume grew by approximately 17%. The company reduced borrowings by over ₹3,000 crore during the first half of the fiscal year and anticipates improved demand and pricing in the coming quarters.
Financial Performance Highlights
In the first half of FY26, Steel Authority of India (SAIL) reported positive financial results, with key highlights including:
- Revenue from operations reaching ₹52,625 crore, an increase of 8% compared to the previous year’s ₹48,672 crore.
- EBITDA margin of ₹5,754 crore, reflecting a growth of around 3%.
- Profit before tax at ₹1,443 crore, up by 28%.
- Profit after tax at ₹1,112 crore, an increase of 32%.
Production and Sales
SAIL’s performance in production and sales for H1 FY26 includes:
- Crude steel production remained stable at 9.5 million tons.
- Sales volume increased to 9.46 million tons, a growth of approximately 17% from 8.11 million tons in the previous year.
Debt Reduction
The company has significantly reduced its borrowings during H1 FY26, achieving a reduction of over ₹3,000 crore. Borrowings as of September 30, 2025, decreased by ₹3,384 crore compared to the same period last year. This debt reduction has led to a decrease in the interest burden.
Market Outlook and Strategies
Looking ahead, SAIL expects an uptick in market demand following the monsoon season and festivals. The company is also focusing on increasing sales both domestically and through exports. Efforts are underway to reduce steel inventory volumes and lower borrowings further in the coming quarters.
Operational Efficiency and Capacity Expansion
SAIL is undertaking de-bottlenecking efforts to enhance production volumes and sales. Capacity expansion plans, particularly at the IISCO plant, are progressing, with major packages already tendered and finalized. Capital expenditure for the year is targeted to exceed ₹7,500 crores.
By-Product Sales and Inventory Management
Increased sales of by-products and scrap items contributed to overall realization in Q2 FY26. SAIL is actively managing its inventory, with finished steel inventory at 1.9 million tons as of September 30, 2025. The company also sold approximately 0.3 million tons of iron ore from Odisha mines and is planning auctions for dump iron ore fines from Jharkhand mines.
Source: BSE
