Any current/future new fundraising through debt or equity?

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 fu

Any current/future capex/capital investment/strategic investment?

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 F

Future growth expectations in sales/revenue/volumes?

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

Future growth expectations in earnings/operating earnings/profits/EPS?

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 volume

Current/ Expected Orderbook/ Pending Orders?

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 finalize

IN US

Sale is live|00:00:00left today

Steel Authority of India LtdQ3 FY25Ferrous Metals

Steel Authority of India Ltd Q3 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹171P/E: 20.7Market Cap: ₹79.5K CrSector: Ferrous Metals

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→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.

Margin guidance

Category 2

→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).

3 more insights locked — sign up free to unlock

Fundraise plans

Yes

→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.

Order book

→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.

Capex plans

Yes

→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.

How does Steel Authority of India Ltd rank vs peers in Ferrous Metals?

Pro feature

1Steel Authority of India Ltd

Rev 3Mar 2

See full Ferrous Metals sector rankings

Want more stocks like Steel Authority of India Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio