Steel Authority of India (SAIL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw record sales volume of 4.55 million tons, up 15% year-over-year, with best-ever first quarter sales performance and crude steel production at 4.854 MT.

• Turnover reached Rs. 25,731 crore, with revenue from operations at Rs. 25,921 crore, and profit before tax surged 2.7x to INR 890 crore.

• Standalone net profit for Q1 FY26 was ₹685.48 crore, up from ₹10.68 crore in Q1 FY25, with consolidated net profit at ₹744.58 crore.

• Debt-equity ratio improved to 0.64, and borrowings reduced to INR 28,741 crore as of June 30, 2025.

• EBITDA margin for Q1 FY26 was 11.20%, with EBITDA at Rs. 2,925 crore, up from Rs. 2,420 crore in Q1 FY25.

Financial highlights

• EBITDA per tonne was INR 6,400, down from INR 6,000 in Q1 last year, mainly due to a one-time stock valuation impact of INR 1,050 crore.

• PAT for Q1 FY26 was Rs. 685 crore, compared to Rs. 11 crore in Q1 FY25.

• Blended coking coal cost was INR 16,918 per ton, down from INR 17,653 in Q4.

• Average NSR for Q1 was INR 51,700 per ton, up from INR 50,100 in Q4.

• Interest coverage ratio for Q1 FY26 was 1.98, and DSCR was 2.74.

Outlook and guidance

• Coking coal prices expected to remain flat in Q2; stock valuation impact not expected to recur.

• Full-year sales volume guidance is 18.5 million tons, excluding NMDC Steel.

• CapEx target for FY26 is INR 7,500 crore, with higher spending expected from FY27 as IISCO expansion ramps up.

• Indian GDP growth for FY26 is projected at 6.3%–6.7%, with steel demand expected to rise 8.5% in 2025.

• Management focuses on cost optimization, operational efficiency, and stakeholder value.