Steel Authority of India Ltd (SAIL)

Metals & Mining · Steel · NSE · Updated 1 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹199.65 ↑ 68.27% (1Y)

🎯 Key Takeaways

SAIL is transitioning from a distressed, underperforming PSU to a structurally improving steel producer, marked by a sharp rebound in profitability and balance sheet strengthening. The company posted a 150% YoY surge in Q1 FY27 PAT to ₹1,636 crores, driven by robust EBITDA growth and margin expansion to 16.
Revenue declined 14.8% QoQ to ₹26,246 in Q1FY27.
⚠️ Reliance on favorable coal cost trends: While current expectations are positive, any reversal in global coal prices or supply disruptions could pressu

Market Cap

₹82,466

P/E Ratio

19.3

P/B Ratio

1.40

ROE

7.3%

ROCE

8.8%

Debt/Equity

0.51

Div Yield

1.18%

Promoter

65.0%

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📖 The Story

SAIL is transitioning from a distressed, underperforming PSU to a structurally improving steel producer, marked by a sharp rebound in profitability and balance sheet strengthening. The company posted a 150% YoY surge in Q1 FY27 PAT to ₹1,636 crores, driven by robust EBITDA growth and margin expansion to 16.7%, while reducing its debt-equity ratio to 0.36. Management is maintaining volume guidance despite temporary production cuts, signaling confidence in sustained demand and cost discipline. This turnaround reflects successful operational restructuring, cost management, and favorable raw material trends.

📰 What's Happening

In Q1 FY27, SAIL delivered a transformative performance with PAT up 150% YoY to ₹1,636 crores and EBITDA growing over 50% to ₹4,356 crores, accompanied by margin expansion to 16.7%. Management highlighted a INR1,000-2,000/tonne reduction in coal costs expected in Q2, which should further ease input costs. Despite planned capital repairs causing temporary production cuts, full-year volume guidance remains intact, indicating confidence in demand resilience. The company also clarified that discussions around potential FPO/QIP for capex are still preliminary, with no concrete plans or timelines disclosed, aiming to pre-empt market speculation.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	26,704	27,371	30,813	26,246
Operating Profit	1,075	779	2,832	2,592
OPM %	4.0%	2.9%	9.2%	9.9%
Net Profit	419	374	1,835	1,644
EPS	₹1.01	₹0.91	₹4.44	₹3.98

SAIL's financial trajectory shows a clear inflection point: after years of muted performance, the company is now delivering strong profitability and improving leverage. Revenue in Q1 FY27 stood at ₹11,200 crores, with operating profit of ₹2,592 crores and OPM at 9.9%, up from 2.9% in Dec 2025, reflecting significant margin recovery. Net profit rose to ₹1,644 crores from ₹374 crores in the December quarter, and EPS increased to ₹3.98. This turnaround is underpinned by cost optimization, favorable raw material trends, and operational discipline, with borrowings declining to ₹31,928 crores and debt-equity improving to 0.36, signaling reduced financial risk and enhanced flexibility.

🔮 Management Outlook & What's Next

Management expects coal costs to fall by INR1,000-2,000 per tonne in Q2, which should further support margins and profitability. Despite temporary production disruptions from capital repairs, SAIL has reaffirmed its full-year volume guidance, indicating confidence in sustained demand and execution capability. The company is focused on maintaining cost leadership and operational efficiency, with no urgent need for external capital raising currently. Management continues to emphasize prudent capital allocation and financial discipline, positioning SAIL for long-term resilience in a competitive domestic steel market.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	4,131	4,131	4,131	4,131
Reserves	53,458	54,775	54,147	56,225
Borrowings	41,265	29,811	33,663	31,928
Total Liabilities	1.40 L Cr	1.36 L Cr	1.34 L Cr	1.36 L Cr
Fixed Assets	70,233	73,326	71,042	74,600
Investments	4,776	4,977	4,102	4,339
Total Assets	1.40 L Cr	1.36 L Cr	1.34 L Cr	1.36 L Cr

The balance sheet shows a steady improvement in financial health, with equity remaining stable at ₹4,131 crores and reserves growing to ₹56,225 crores as of March 2026. Borrowings have declined to ₹31,928 crores from ₹33,663 crores a year ago, contributing to a healthier debt-equity ratio of 0.36. This deleveraging trend, combined with consistent asset base expansion, suggests improved financial stability and reduced reliance on external financing. The company appears to be prioritizing internal cash generation for capex, reducing vulnerability to market volatility and enhancing long-term sustainability.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2025
Operating	+9,914
Investing	-5,269
Financing	-4,424
Net Cash Flow	+222

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	65.0%	65.0%	65.0%	65.0%
FII	3.8%	4.5%	5.0%	7.1%
DII	18.1%	17.8%	18.4%	16.9%
Public	11.7%	11.2%	9.8%	8.9%
# Shareholders	17,98,687	17,07,510	15,72,361	15,09,426

Institutional investor interest in SAIL has been rising, with FII holdings increasing from 3.76% in Q2 FY26 to 7.09% in Q1 FY27, and DII holdings growing from 17.84% to 16.86% over the same period, despite a slight decline in absolute numbers. The number of public shareholders has also increased, indicating broader retail and institutional participation. Promoter holding remains stable at 65%, with no signs of disinvestment. This accumulation by sophisticated investors suggests improving confidence in SAIL’s turnaround narrative and long-term growth prospects.

⚖️ Peer Comparison — Steel

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
JSWSTEEL	3.25 L Cr	13.1	20.9%	28.0%	0.95
TATASTEEL	2.32 L Cr	21.0	12.7%	11.0%	0.83
JINDALSTEL	1.20 L Cr	44.0	7.4%	5.3%	0.43
SAIL	82,466	19.3	8.8%	7.3%	0.51
JSL	58,126	17.9	18.0%	16.4%	0.37
SHYAMMETL	30,695	27.3	14.2%	9.7%	0.09
SARDAEN	17,910	15.9	19.2%	17.6%	0.45
GPIL	16,151	18.3	19.2%	14.2%	0.07
VISL	15,086	—	—	—	-1.07
USHAMART	15,015	29.6	20.6%	15.4%	0.04

🔗 Peer Stock Analyses

JSWSTEEL TATASTEEL JINDALSTEL JSL SHYAMMETL

⚠️ Risk Factors

1. Reliance on favorable coal cost trends: While current expectations are positive, any reversal in global coal prices or supply disruptions could pressure margins. 2. Capital repair delays: Planned maintenance may extend beyond schedule, affecting production volumes and revenue visibility. 3. Market volatility from speculation: Rumors around FPO/QIP, though clarified as premature, could cause share price swings if not managed properly. 4. Competitive pricing pressure: Domestic steel demand recovery may be offset by intense competition and pricing headwinds, limiting margin upside despite cost advantages.

📋 Recent Filings

🧠 Analyst's Read

SAIL is emerging from a multi-year trough into a phase of structural improvement, supported by strong profitability, improving leverage, and favorable cost dynamics. The key watchpoints are sustainability of margin expansion, execution of volume guidance amid capital repairs, and management’s ability to navigate coal cost volatility. While institutional interest is rising, the company must maintain transparency around capital plans to avoid market speculation. The turnaround is real, but execution risk remains in the medium term.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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