Steel Authority of India Limited (SAIL) conducted its Q2 FY27 earnings conference call on 28 October 2026, hosted by Nuvama Wealth Management. The call was led by Dr. Ashok Kumar Panda, Chairman and Managing Director, and Mr. T.N. Natarajan, Director (Commercial).

Financial Performance Highlights

Q2 FY27 Performance:

  • Crude steel production: 4.85 million tons (up 2% QoQ and 4% YoY)
  • Sales volume: 5.2 million tons (up 5% YoY and 24% QoQ)
  • Sales turnover: ₹31,766 crores (up 20% YoY and 22% QoQ)
  • EBITDA: ₹4,561 crores
  • PBT: ₹2,356 crores (vs. ₹553 crores YoY)
  • PAT: ₹1,774 crores (vs. ₹427 crores YoY)

H1 FY27 Performance:

  • Crude steel production: 9.6 million tons (up 2% YoY)
  • Sales volume: 9.33 million tons
  • Sales turnover: ₹57,776 crores (up 11% YoY)
  • EBITDA: ₹8,917 crores (up 55% YoY)
  • PBT: ₹4,515 crores (up 213% YoY)
  • PAT: ₹3,410 crores (up 207% YoY)

Debt and Financial Position

  • Net borrowings reduced to ₹20,583 crores as of 30 September 2026 (from ₹21,729 crores as of 30 June 2026)
  • ₹1,146 crore reduction in Q2 FY27; ₹1,080 crore reduction in H1 FY27
  • Debt-equity ratio improved to 0.34x
  • Finance cost at 6.34% (vs. 6.42% last year)

Operational Highlights

  • Steel inventory reduced to 1.59 million tons (0.86 million tons saleable steel + 0.73 million tons in-process steel)
  • Inventory reduced from 1.8 million tons as of 31 March 2026 and 2.15 million tons as of 30 June 2026
  • Current inventory at 15 days coverage (vs. 17.5 days as of 31 March 2026)
  • Target to reduce inventory to 1.2-1.3 million tons by year-end
  • Iron ore fines sales: 2.5 million tons in H1 FY27 (vs. 0.9 million tons YoY) generating ₹388 crore profit
  • Target of 7-8 million tons iron ore sales for FY27

Raw Material Costs

  • Imported coking coal cost: ₹22,930/ton in Q2 FY27 (vs. ₹21,300/ton in Q1 FY27)
  • Expected coking coal cost: ₹24,100/ton in October, similar in November, ~₹23,500/ton in December
  • Q3 FY27 expected average: ~₹23,800-23,900/ton
  • Q4 FY27 expected to moderate to ~₹22,000/ton

Expansion and Capex Plans

  • Planned expansion from 20 MTPA to 35 MTPA across 4 units (IISCO, Bokaro, Bhilai, Rourkela)
  • Total planned capex: ₹1.2 lakh crores over 4 years (FY27-FY31)
  • FY27 capex guidance: ₹15,000 crores (H1 achievement: ₹5,500 crores)
  • FY28 capex guidance: >₹20,000 crores
  • Subsequent years: ₹25,000+ crores annually
  • Funding mix: Internal accruals (₹40,000-50,000 crores over 4 years), FPO, and debt

Mine Development Updates

  • Tasra coking coal mine: Production expected to start January 2027
  • Rowghat iron ore mines: Interim mining at 3 MTPA; phased expansion to 14 MTPA over 3-4 years
  • Gua iron ore mines: Plan to increase production from 4 MTPA to 10 MTPA via MDO
  • RSP pellet plant (2 MTPA): On track, advanced stages
  • Iron ore production target: 48-50 MTPA for FY27 (vs. 38 MTPA last year)
  • Ambitious target of 100 MTPA by FY30-31 (excluding Chiria mines)

Guidance and Outlook

  • FY27 sales volume guidance: ~21 million tons (includes ~500,000 tons from RINL)
  • Q3 and Q4 traditionally strongest quarters for steel industry
  • Realizations showing improving signs: October NSR at ₹58,700/ton for longs and ₹61,700/ton for flats (~₹4,000 increase over Q2 average)
  • Employee strength: Reduced to 48,000 (target 46,000 by FY27-end; 26,000 by 2031)
  • Labor code provisions: ₹198 crores in Q2, ₹350 crores in H1; full provision made based on best estimates

Other Business Updates

  • RINL sales: 184,000 tons in H1 (88,000 tons in Q2); accounted as purchase and turnover
  • Rail price revision: No impact in Q2 (₹300 crore impact in Q1)
  • Product mix: Rails 8% by volume, bars and rods 22% by volume
  • Coking coal procurement: 85% imported, 15% indigenous
  • No external coke purchases; fully captive production