Steel Authority of India Limited (SAIL) has reaffirmed its sales volume target and provided insights into its expected financial performance, as disclosed during a recent conference call.

Sales Volume Target

SAIL has confirmed that its sales volume target remains unchanged at 18.5 million tonnes. This steadfast commitment to the target suggests the company's confidence in its production and market demand projections.

EBITDA Margin Outlook

The company has provided guidance on its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin expectations:

SAIL anticipates that its EBITDA margin may either remain steady or show a slight improvement in the third quarter. However, the company projects a more substantial enhancement in the fourth quarter, with the EBITDA margin expected to reach 14-15%.

Implications

The maintained sales target and projected EBITDA margin improvement could indicate SAIL's optimistic outlook for the steel industry in the coming months. These expectations might be influenced by factors such as anticipated demand growth, cost management initiatives, or favorable market conditions.

Investors and industry observers may want to monitor SAIL's performance in the upcoming quarters to see if the company achieves its projected targets and margin improvements.

Steel Authority of India Limited (SAIL), the state-owned Maharatna company, has announced robust financial results for the second quarter and first half of fiscal year 2026, demonstrating resilient operational performance and improved profitability.

Key Highlights

• Crude steel production remained steady at 9.5 million tonnes for H1 FY26
• Sales volume grew by 16.7% as the company expanded its outreach to retail and other consumers
• Revenue from operations surpassed Rs. 52,600 crore, driven by higher sales volume despite pricing challenges
• Profit After Tax (PAT) increased by approximately 32%, highlighting operational efficiency and cost optimization
• Debt reduced to Rs. 26,427 crore as the company pushed towards its March 2023 level

Financial Performance

For the half-year ended September 30, 2025, SAIL reported the following standalone results:

The company's performance in Q2 FY26 was particularly strong, with a standalone PAT of Rs. 426.79 crore, compared to Rs. 685.48 crore in Q1 FY26.

Operational Highlights

SAIL maintained high capacity utilization, resulting in steady production levels. The significant increase in sales volume, despite volatility in global steel markets, was attributed to the company's collective efforts and strategic focus on expanding its customer base.

Management Commentary

The Chairman and Managing Director of SAIL commented on the results, stating, "H1 FY'26 performance demonstrates SAIL's consistency across both operational and financial metrics. The Company has maintained high capacity utilisation for a steady production. With steely resolve and collective team efforts, we have achieved significant increase in sales volume despite the volatility in global steel markets. Coupled with the drive towards efficiency improvement and cost rationalisation, this translated into robust financial performance."

Future Outlook

As India moves towards becoming a low-carbon economy, SAIL remains committed to contributing to this transition. The company aims to ensure sustainable profitability through product diversification, customer-centric strategies, digitalization, and envisaged expansion to supplement ongoing efforts.

SAIL's focus on operational efficiency and cost optimization has yielded positive results in a challenging market environment. The company's ability to increase sales volume and improve profitability demonstrates its resilience and strategic adaptability. As SAIL continues to align its operations with India's economic goals, investors and industry observers will be watching closely to see how the company navigates the evolving steel market landscape.