Steel Authority of India (SAIL) Q3 25/26 earnings summary

Executive summary

• Crude steel production reached 14.35 million tons in the nine months ended December 2025, with saleable steel at 14.24 million tons and total sales volume up 16.3% year-over-year to 14.61 million tons.

• Revenue for the nine months rose 9% year-over-year to INR 79,997 crore, with PAT up 60% to INR 1,554 crore, driven by operational efficiency, inventory liquidation, and cost optimization.

• EBITDA for the nine months was INR 8,384 crore, with an EBITDA margin of 10.56%.

• Debt reduced by INR 5,000 crore during the period, with borrowings at INR 34,983 crore and a debt-equity ratio of 0.62 as of December 2025.

• EPS for the nine months stood at 3.76.

Financial highlights

• Revenue for nine months reached INR 79,997 crore, up from INR 72,595 crore year-over-year.

• PAT increased by 60% year-over-year to INR 1,554 crore, with an operating margin of 10.48% and net profit margin of 1.94%.

• Interest cost reduced by INR 500 crore in nine months, with an additional INR 500 crore reduction expected in Q4.

• Debt service coverage ratio at 3.03 and interest coverage ratio at 2.10.

• Net worth as of December 2025 was INR 56,236 crore.

Outlook and guidance

• Q4 expected to see an uptick in pricing and margins due to stable or rising coal prices and strong market support.

• Sales volume guidance for FY 2026 is 19.5 million tons, with Q4 volumes expected to exceed Q3.

• CapEx guidance for FY 2026-2027 is INR 15,000 crore, with major spending on ISP expansion.

• India's steel demand expected to grow by 8.5% in 2025, the highest among major economies.

• Management aims to further optimize product mix and cost structure, including setting up beneficiation plants.