SAIL Reports 32% Profit Surge in H1 FY26, Reduces Debt by Rs 3,000 Crores

Steel Authority of India (SAIL), one of India's largest steel producers, has reported a robust financial performance for the first half of fiscal year 2026 (H1 FY26), marked by significant profit growth and debt reduction.

Financial Highlights

SAIL's financial results for H1 FY26 showcase strong growth across key metrics:

Metric	H1 FY26	YoY Change
Profit After Tax	1,112.00	+32%
Revenue from Operations	52,625.00	+8%
Sales Volume	9.46	+17%
EBITDA	5,754.00	+3%

The company's profit after tax saw a substantial increase of 32% compared to the same period last year, reaching Rs 1,112.00 crores. This growth was supported by an 8% rise in revenue from operations, which stood at Rs 52,625.00 crores.

Operational Performance

SAIL's operational performance was equally impressive:

Sales volume increased significantly by 17% to 9.46 million tons, up from 8.11 million tons in H1 FY25.
The company maintained its crude steel production at 9.5 million tons, consistent with the previous year's performance.
SAIL reaffirmed its production guidance of 18.5 million tons for FY26, indicating confidence in its operational capabilities.

Debt Reduction and Financial Management

A key highlight of SAIL's H1 FY26 performance was its successful debt reduction:

The company reduced its borrowings by over Rs 3,000.00 crores during the half-year period.
Non-IndAS borrowings decreased to Rs 26,427.00 crores, reflecting SAIL's commitment to improving its financial health.

By-product and Scrap Sales

SAIL reported higher realization from scrap and by-product sales:

Q2 FY26 saw sales of Rs 1,140.00 crores from these categories, up from Rs 869.00 crores in Q1 FY26.
This increase contributed positively to the company's profitability, with an estimated 20-25% of the incremental revenue flowing into EBITDA and PBT.

Future Outlook

Looking ahead, SAIL's management expressed optimism for the second half of FY26:

Expectations of improved performance in Q3 and Q4 as capital repairs are completed and demand picks up post-monsoon and festive season.
The company anticipates better cost reduction in the coming quarters due to completed capital repairs and improved blast furnace operations.
SAIL is progressing with its IISCO expansion project, which aims to add 4.5 million tons of capacity at an estimated cost of Rs 36,000.00 crores.

Market and Pricing Trends

The company provided insights into recent market trends:

Long product prices remained relatively stable, with October prices at Rs 49,940.00 per ton compared to the Q2 average of Rs 48,800.00.
Flat product prices saw some pressure, with a reduction of Rs 1,200.00 to Rs 1,300.00 per ton in October compared to September.

SAIL's performance in H1 FY26 demonstrates its resilience in a challenging market environment. The company's focus on operational efficiency, debt reduction, and strategic expansion positions it well for future growth in India's dynamic steel sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.15%	+4.56%	+4.19%	+20.38%	+21.32%	+297.64%

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:

Quarter	EBITDA Margin Expectation
Q3	Steady or slight improvement
Q4	Significant improvement to 14-15%

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.