SAIL Posts Strong Q1 FY27 Profit, PAT Jumps 138% Despite Lower Sales Volumes

State-owned Steel Authority of India Limited (SAIL) reported a sharp rise in profitability for the first quarter of FY2026-27, driven by improved operational efficiency, prudent cost management, and resilient domestic steel demand despite a decline in production and sales volumes.

The company posted a net profit (PAT) of ₹1,636 crore for the quarter ended June 30, 2026, registering a 138% year-on-year increase from ₹685 crore recorded in the corresponding quarter of the previous fiscal. Profit before tax (PBT) stood at ₹2,159 crore, up significantly from ₹890 crore a year ago.

Revenue from operations increased marginally to ₹26,246 crore, compared with ₹25,921 crore in Q1 FY26. The company’s EBITDA surged to ₹4,356 crore, reflecting a substantial improvement over ₹2,925 crore in the year-ago period, highlighting stronger operational performance and cost optimization.

During the quarter, SAIL produced 4.76 million tonnes of crude steel, slightly lower than the 4.85 million tonnes produced in the corresponding period last year. Sales volume also declined to 4.16 million tonnes from 4.55 million tonnes in Q1 FY26.

The company attributed the moderation in production and sales to planned maintenance and repair activities undertaken during the quarter. According to SAIL, the maintenance schedule was advanced in response to geopolitical uncertainties that disrupted global supply chains. The company said the proactive measure is expected to enhance production stability and improve operational performance in the coming quarters.

Commenting on the results, SAIL Chairman and Managing Director Dr. Ashok Kumar Panda said the domestic steel industry remained resilient despite global uncertainties, supported by sustained demand in the Indian market.

“Through enhanced operational efficiencies, prudent cost management and focused marketing initiatives, SAIL has delivered a significantly profitable first quarter in FY27. The company remains confident of leveraging its robust manufacturing capabilities while capitalizing on the sustained domestic steel demand,” he said.

Compared with the previous quarter (Q4 FY26), SAIL’s revenue declined from ₹30,813 crore to ₹26,246 crore, while PAT moderated slightly from ₹1,680 crore to ₹1,636 crore. EBITDA also eased from ₹4,762 crore in the preceding quarter but remained substantially higher than the year-ago level.

The company reported an exceptional loss of ₹144 crore during the quarter, lower than the exceptional loss of ₹330 crore recorded in Q4 FY26.

With domestic infrastructure spending and industrial demand expected to remain strong, SAIL expressed confidence that its planned maintenance strategy and operational improvements would support stronger production and financial performance in the coming quarters.

Source: PIB