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Earnings Call Transcript

Steel Authority of India (SAIL) Earnings Call Transcript: Key Takeaways

SAIL reported Q1 FY27 results with EBITDA of INR 4,356 Cr and PAT of INR 1,636 Cr, reflecting strong profitability despite lower sales volumes due to planned capital repairs.

Highlights
Revenue growthSales turnover increased over 1% YoY despite 7-8% volume decline.
MarginsEBITDA margin at 16.7%; EBITDA/tonne crossed benchmark INR 10,000 level.
Demand visibilityRobust domestic demand with consumption up 8% over CPLY.
Management confidenceHigh; emphasizing operational efficiency and inventory liquidation strategy.

Growth

EBITDA grew 50% YoY to INR 4,356 Cr; PBT and PAT increased by approximately 150% YoY.

Outlook

FY27 capex target of INR 15,000 Cr; targeting 8 million tonnes iron ore sales; expecting cost reductions of INR 2,000-3,000/tonne.

Risks

Geopolitical issues in Middle East impacting fuel and limestone supply; seasonal monsoon headwinds affecting Q2 steel demand.

Last quarter's promises, checked

Delivered

  • Guided 22MT sales volume → delivered 19.9MT (= MISS)
  • Guided debt reduction → delivered INR 8,150 Cr reduction (= BEAT)
  • Guided clean balance sheet → delivered zero qualifications (= BEAT)

Partly delivered

  • Guided 22.5MT crude steel production → delivered 19.43MT (= PARTIAL)

Missed

  • Guided FY26 capex INR 10,000 Cr → delivered INR 9,100 Cr (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: SAIL. Summary written with AI assistance from the document.

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Steel Authority of India (SAIL) Ltd: key numbers

Share price
₹185.00
Market cap
₹76,415 Cr
Revenue (annual)
₹1,10,811 Cr
Net profit (annual)
₹3,373 Cr
P/E (TTM)
17.9×Sector 19.0×
Promoter holding
65.00%+0.00% QoQ
FII holding
7.09%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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