Synopsis:
The company outlined strong long-term growth plans, including capacity expansion and digital-led margin gains. Despite mixed Q1FY26 results, with QoQ declines but strong YoY profit growth, its Rs 1 lakh crore investment plan and debt reduction efforts signal a focused growth trajectory.
As a cornerstone of India’s economy, the iron and steel sector is a global powerhouse, ranking as the world’s second-largest steel producer. Contributing approximately 2% to the nation’s GDP, the industry is experiencing robust growth. In June 2025, crude steel production reached 13.6 million tonnes, a significant 13.3% increase year-over-year, underscoring its vital role in national development
With a market capitalization of Rs 50,841.43 crore, the shares of Steel Authority of India Ltd were trading at Rs 123.25 per share, decreasing around 0.64 percent as compared to the previous closing price of Rs 124.05 apiece.
The company is targeting an 8% sales volume growth for FY26, aiming to boost profitability through higher volumes, cost efficiencies, and digitization. Its digital initiatives alone are expected to add ₹1,000 crore to profit before tax, while margins are projected to expand by 200–300 basis points in the coming quarters.
Additionally, the company plans to reduce net debt by ₹5,000 crore, reinforcing its financial discipline. A capex of ₹7,500 crore has been earmarked for FY26 to drive future expansion. Looking ahead, the company intends to increase its capacity from 20 mtpa to 35 mtpa by 2030, backed by an ambitious ₹1 lakh crore investment plan.
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Recently, the company reported mixed results in Q1FY26. Revenue decreased by 12 percent on a quarter-on-quarter basis from Rs. 29,316 crore in Q4FY25 to Rs. 25,922 crore in Q1FY26. Further, revenue increased by 8 percent year on year, from Rs 23,998 crore in Q1FY25 to Rs 25,922 crore in Q1FY26.
The company’s net profit decreased by 40 percent on a quarter-on-quarter basis, from Rs. 1,251 crore in Q4FY25 to Rs. 745 crore in Q1FY26. Further, net profit increased significantly by 808 percent year on year from Rs 82 crore in Q1FY25 to Rs 745 crore in Q1FY26
Steel Authority of India Limited (SAIL) reported Rs 28,315.56 crore in segment revenue for Q1 FY26, down from Rs 31,300.84 crore in Q4 FY25. Bhilai Steel Plant led with Rs 7,448.88 crore, followed by Rourkela and Bokaro. Yearly revenue reached Rs 1,11,654.15 crore in FY25, with Bhilai contributing the most at Rs 33,432.83 crore, reflecting its dominant role in SAIL’s operations.
Steel Authority of India Limited is engaged primarily in the steel manufacturing business. The Company is engaged in the manufacturing and sale of iron and steel products. The Company’s business segments include five integrated steel plants and three alloy steel plants.
Written by Abhishek Singh
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