SAIL PAT Jumps 51% in FY26, Releases Concall Transcript
Steel Authority of India released the transcript of its May 16, 2026, conference call, detailing a strong financial performance for FY '25-'26 with a 51% rise in PAT and record sales volumes. The company significantly reduced debt and inventory while improving borrowing costs. For the upcoming fiscal year, SAIL targets 22 million tons in sales volume and has outlined a capex plan of INR15,000 crores to support expansion projects.
*this image is generated using AI for illustrative purposes only.
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.
| Metric | FY '25-'26 Performance |
|---|---|
| Sales Volume | 19.9 million tons (up 11%) |
| Sales Turnover | ~INR110,000 crores (up 8%) |
| PAT Growth | 51% |
| Debt Reduction | ~INR8,150 crores |
| Borrowing Cost | Reduced to 6.2% |
The transcript is available on the company's official investor relations portal.
Historical Stock Returns for Steel Authority of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.22% | -4.25% | +6.87% | +49.57% | +51.53% | +61.27% |
How will the ~INR3,500 per ton rise in coking coal prices in April-May impact SAIL's margins in Q1 FY '26-'27, and what hedging strategies is the company employing to mitigate input cost volatility?
Can SAIL realistically achieve its 22 million ton sales volume target for FY '26-'27 given current domestic steel demand trends and potential competition from steel imports?
With capex expected to surge from INR15,000 crores to over INR20,000 crores in FY '27-'28 for expansion projects at IISCO, Bokaro, and Bhilai, how will the company balance growth investments while maintaining its debt reduction trajectory?
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