Steel Authority of India Ltd

Q2 FY26Ferrous Metals

Steel Authority of India Ltd Q2 FY26 Results & Concall Highlights: Capex ₹36,000 Cr

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹173

Market cap₹72.5K Cr

P/E15.0

Updated23 Aug 2026

Read4 min read

The short version

For FY26-27, SAIL expects production and sales volume growth of 5% to 7% compared to FY25-26, driven by debottlenecking projects across plants including IISCO, Bhilai, Rourkela, and Durgapur. EBITDA margin expected to improve in Q3 and significantly in Q4, potentially reaching 14-15% due to completion of capital repairs and increased production (Page 19).

From Steel Authority of India Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

For FY26-27, SAIL expects production and sales volume growth of 5% to 7% compared to FY25-26, driven by debottlenecking projects across plants including IISCO, Bhilai, Rourkela, and Durgapur.
In Q3 and Q4 of FY25, an increase in production is expected with sales volumes rising even more to reduce steel inventory.
Over FY26-27, a significant reduction (about 50%) in sellable steel inventory is targeted, alongside production volume increases.
Long-term capacity expansion primarily includes 4.5 million tons expansion at IISCO (~Rs.36,000 crores CAPEX) and various debottlenecking projects at multiple plants, with CAPEX expected to exceed Rs.10,000 crores from FY26-27 onwards.
Increased sales of scrap and by-products are anticipated, adding to realization improvements.
Overall, domestic steel demand is expected to recover and grow, supporting volume and revenue growth.

Profitability & Margins

EBITDA margin expected to improve in Q3 and significantly in Q4, potentially reaching 14-15% due to completion of capital repairs and increased production (Page 19).
Production growth targeted at 5-7% in FY27, driven by de-bottlenecking projects and capacity expansions, especially at IISCO (Pages 14, 17).
Cost control measures and improved efficiency expected to enhance margins in the balance period of the year (Page 19).
Reduction in borrowings and interest burden supports profitability; debt-equity ratio aimed to reduce to 0.3-0.4 by year-end before CAPEX push (Page 15).
Sales volumes expected to grow in FY26-27, with focus on reducing inventory and increasing sales more than production (Page 7).
Capital expenditure to increase significantly from FY26, boosting capacity and long-term earnings (Page 14).
Positive impact expected from higher realizations from by-products and scrap sales flowing through EBITDA and PBT (Pages 14,16).

See what Steel Authority of India Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Major CAPEX planned for IISCO expansion: 4.5 million tons capacity increase at a cost of around Rs.36,000 crores.
Most major packages for IISCO expansion have been tendered and finalized; order placements underway, with physical work starting in FY26-27.
Other ongoing CAPEX includes de-bottlenecking projects at Durgapur, IISCO, Bhilai, and Rourkela Steel Plant (RSP).
FY25 CAPEX target exceeded Rs.7,500 crores, expected to exceed Rs.10,000 crores from FY26-27 onward, with further increases in subsequent years.
Expansion and de-bottlenecking projects to drive over 5-7% volume growth in FY26-27.
Debt-equity ratio targeted for reduction to 0.3-0.4 by year-end, maintaining 50:50 funding mix of debt and internal accrual for CAPEX.
Overall, CAPEX focus on capacity expansion, efficiency improvement, and debottlenecking for sustained growth.

Top-ranked in Ferrous Metals

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2Indian Metals & Ferro Alloys Ltd₹6.7K Cr

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3₹5.9K Cr

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4₹2.3L Cr

Rev 3Mar 1

5₹7.7K Cr

Rev 3Mar 2

Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

SAIL is currently reducing borrowings, targeting a debt-equity ratio of around 0.3 to 0.4 by year-end (currently ~0.46 non-IndAS basis).
Borrowing reduction momentum is expected to continue through Q3 and Q4 of FY25-26.
From next year onwards, borrowings are expected to increase to fund CAPEX, especially for de-bottlenecking and expansion projects like IISCO.
CAPEX is set to rise significantly, with FY25-26 target > Rs.7,500 crores and FY26-27 expected to exceed Rs.10,000 crores.
Funding strategy is planned to be roughly 50% debt and 50% internal accruals.
No mention of new equity fundraising in the disclosed sections.
The company is creating headroom to accommodate future borrowings for expansion over next 4-5 years.

See what Steel Authority of India Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

For IISCO expansion (4.5 million tons capacity increase at Rs. 36,000 crores):
- Major packages already tendered and mostly finalized.
- Some orders have been placed; remaining major packages’ orders to be completed in 1-2 months.
- Design engineering and physical work to start post order placement.
- Significant CAPEX payments expected in FY26-27.
Other projects:
- De-bottlenecking efforts ongoing at Durgapur, IISCO, Bhilai, Rourkela Steel Plant (RSP).
- Orders placed for Durgapur Rebar mill last year; ground activities ongoing.
- Blast furnace orders at Durgapur being finalized.
- Tendering in progress and some orders placed across plants with work started.
Overall, order placements are on track for expansion and de-bottlenecking projects.

Steel Authority of India Ltd — Quarterly revenue & net profit

Revenue Net profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹30.8K Cr, net profit ₹1.8K Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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Frequently Asked Questions

What were Steel Authority of India Ltd Q2 FY26 results?

What is Steel Authority of India Ltd share price analysis?

Steel Authority of India Ltd currently shows a neutral. The stock trades at a P/E of 15.0 with a market cap of ₹72,491 Cr. Investors should review the full earnings analysis for detailed insights.

Is Steel Authority of India Ltd planning capital expenditure?

Major CAPEX planned for IISCO expansion: 4.5 million tons capacity increase at a cost of around Rs.36,000 crores.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.