Steel Authority of India Limited (SAIL) delivered a strong performance in Q4 FY26, marked by a 48% increase in PBT and a 43% rise in PAT compared to the same quarter last year. The company successfully reduced debt by INR 3,200 crore during the quarter, driven by operational efficiencies and inventory liquidation. With annual sales reaching 19.9 million tons, SAIL maintains a positive growth outlook, targeting 22 million tons in sales for FY27.
Financial Highlights
SAIL demonstrated robust financial health in FY26, with total sales turnover reaching approximately INR 110,000 crore, an 8% year-on-year growth. The company achieved a 44% increase in PBT for the fiscal year, with PAT growing by 51%. Operational excellence, including a 11% growth in annual sales volume and significant cost optimization, resulted in a total inventory reduction of nearly 1 million tons. Consequently, borrowings were reduced by INR 8,150 crore during the year, with the cost of borrowing improving from 7.3% to 6.2%.
Strategic Growth and Capex
The company is aggressively pursuing expansion with a FY27 capex guidance of INR 15,000 crore, expected to exceed INR 20,000 crore in FY28. Expansion projects are underway at IISCO, Bokaro, and Bhilai. These efforts are supported by debottlenecking strategies aimed at pushing crude steel production to 22.5 million tons in FY27. New capacity additions are expected to materialize from FY30-31.
Operational Efficiency
SAIL continues to prioritize efficiency by closing smaller, inefficient furnaces and ramping up production from larger facilities. This approach, alongside increased PCI (Pulverized Coal Injection) and oxygen usage in blast furnaces, has improved productivity. The company is also focused on reducing the coke rate by a further 20kg/t in FY27. Additionally, the workforce is being optimized, with a planned reduction of 3,400 to 3,500 employees annually over the next two years.
Market Outlook
Despite muted demand trends typically observed in the first half of the fiscal year, management remains optimistic about steady growth in FY27. The company noted that domestic demand remains stable and expects realized steel prices to continue supporting margins. SAIL is also taking proactive steps to mitigate raw material supply risks by securing diverted supply routes and increasing the usage of alternative fuels like PNG and LPG.
Source: BSE
