Steel Authority of India Limited disclosed non-compliance with SEBI regulations regarding the composition of its Board of Directors and various committees during FY26. The company faced monetary penalties from BSE Limited and National Stock Exchange of India Limited for failing to maintain the required proportion of non-executive and independent directors. The lapses included the absence of an independent woman director for a specific period and insufficient independent directors on key committees.

Regulatory Penalties and Fines

The Annual Secretarial Compliance Report for the year ended March 31, 2026, detailed specific deviations from Regulation 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Consequently, BSE imposed fines for multiple quarters in FY26. The penalties were levied due to the company's failure to adhere to the mandated board structure, which requires at least 50% non-executive directors and specific independent director quotas.

Committee Composition Lapses

Beyond the board structure, the company also reported non-compliance with Regulations 18, 19, 20, and 21 concerning the composition of board sub-committees. The Audit Committee, Nomination and Remuneration Committee, Stakeholders' Relationship Committee, and Risk Management Committee lacked the required number of independent directors at various times throughout the year. These structural deficiencies resulted in additional fines amounting to ₹6,20,680 for the quarter ended March 2025, ₹3,82,320 for June 2025, and ₹2,12,400 each for the quarters ended September and December 2025.

Management Response and Remedial Actions

The management stated that the appointment of directors, including independent and woman independent directors, is subject to nomination by the Government of India. Consequently, the board is not empowered to make these appointments unilaterally. To address the non-compliance, the company requested the stock exchanges to waive the imposed fines. Following government nominations, three independent directors, including one woman independent director, were appointed in April 2025, and another in July 2025. Additionally, several key directorial positions, including Director (Finance) and various director-in-charge roles, were filled during FY26, restoring compliance with regulatory requirements by September 2025.

Steel Authority of India has released the transcript of its conference call held on May 16, 2026, discussing the financial results for the quarter and year ended March 31, 2026. The disclosure, filed under Regulation 46 of SEBI (LODR) Regulations, 2015, follows the earlier intimation regarding the audio recording of the meet.

Financial Performance Overview

For the full year FY '25-'26, the company reported a 51% increase in Profit After Tax (PAT) and a 44% growth in Profit Before Tax (PBT). Sales turnover reached approximately INR110,000 crores, an 8% increase compared to the previous year. The company achieved its highest ever sales volume of 19.9 million tons, growing by 11%. Crude steel production increased by 1% to 19.4 million tons.

Operational efficiency and inventory liquidation played a key role in the results. The company reduced its inventory by close to 1 million tons and lowered borrowings by around INR8,150 crores during the fiscal year. The cost of borrowings also improved, decreasing from 7.3% to 6.2%.

Q4 Performance and Guidance

In the fourth quarter of FY '25-'26, sales volume grew by 4% to 5.3 million tons, while sales turnover increased by 5% to INR30,541 crores. Profitability improved significantly, with PBT rising by 48% and PAT by 43% compared to the corresponding quarter of the previous year. The company also reduced debt by INR3,200 crores in Q4 alone.

Looking ahead to FY '26-'27, management has set a sales volume target of 22 million tons. Capital expenditure (capex) for the year is guided at INR15,000 crores, with expectations to increase to over INR20,000 crores in the following year as expansion projects at IISCO, Bokaro, and Bhilai progress.

Operational Metrics and Outlook

The company noted that the domestic steel market remains steady on demand and price fronts. While coking coal prices have risen by approximately INR3,500 in April and May compared to Q4, the company expects sales realizations to support margins. Management highlighted that the balance sheet for FY '25-'26 is now free from qualifications.

The transcript is available on the company's official investor relations portal.