Morgan Stanley has revised its investment rating on Steel Authority of India Limited , downgrading the state-owned steel manufacturer from Equal Weight to Underweight. The global investment bank has simultaneously set a target price of ₹140.00 per share for the company.

Rating Change Details

The following table summarizes the key details of Morgan Stanley's rating revision:

Investment Implications

The downgrade from Equal Weight to Underweight represents a shift in Morgan Stanley's outlook on SAIL's investment prospects. An Underweight rating typically indicates that the analyst expects the stock to underperform relative to the broader market or sector peers over the investment horizon.

The target price of ₹140.00 provides investors with Morgan Stanley's price expectation for the steel company's shares. This rating change may influence investor sentiment and trading activity in SAIL's stock as market participants assess the revised investment thesis.

Steel Authority of India (SAIL) shares gained 2.34% to Rs 150.85 during Monday's trading session after the state-owned steelmaker reported its best-ever December sales performance. The company achieved a remarkable 37% year-on-year growth in sales volume to 2.1 million tonnes in December 2025, compared to 1.5 million tonnes in December 2024.

Record December Performance Drives Market Confidence

The December results marked SAIL's strongest monthly performance for the period, reflecting gains across product categories and sales channels. The company attributed this exceptional showing to maintaining a strong focus on customer deliveries, which enabled significant inventory reduction and operational efficiency improvements.

Export Volumes Surge Significantly

Beyond domestic market records, SAIL reported that export volumes have also surged significantly, underscoring the company's growing global footprint. This international expansion complements the strong domestic demand that has been driving the steel industry's robust performance.

Sustained Growth Momentum in FY26

The strong December performance helped SAIL maintain its growth trajectory throughout the fiscal year. For the April-December FY26 period, the company achieved provisional sales volume of 14.7 million tonnes, representing approximately 17% growth compared to 12.6 million tonnes during the corresponding period in the previous year.

Industry Outlook and Policy Support

According to Ashok Panda, SAIL's Director (Finance), the country's steel industry continues to see robust demand, with steel consumption during the first half of fiscal 2025-26 growing by more than 8% over the same period last year. However, he noted that demand growth was overshadowed by faster supply expansion, as crude steel production grew by more than 12% during the same period.

Prospects for domestic steelmakers have been supported by recent trade measures, including India's imposition of a 12% safeguard duty on steel imports from China, Vietnam and Nepal, which is expected to bolster the domestic industry.

The combination of record monthly sales, sustained fiscal growth, export expansion, and supportive policy environment has positioned SAIL shares firmly on investors' radar.