Steel Authority of India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Steel Authority of India Ltd filed with BSE on 01 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
SAIL reported Q1 FY27 EBITDA of Rs 4,356 crore, up more than 50% from Rs 2,925 crore a year earlier, with EBITDA margin at 16.7% and EBITDA per tonne crossing Rs 10,464. Management attributed part of the quarter's lower production and sales volumes to advanced capital repairs at IISCO, Durgapur and Bokaro plants, while PBT and PAT grew around 150% year-on-year to Rs 2,159 crore and Rs 1,636 crore respectively. The company also reported higher sales from captive iron ore mines, an improved debt equity ratio of 0.36, and discussed input cost movements including imported coking coal and NSR trends.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Crude steel production: 4.8 million tonnes (Q1 FY27)
p. 4
“Crude steel production stood at 4.8 million tonnes in quarter 1 '26-'27 as against 4.9 million tonnes CPLY.”
Ashok Panda, page 4 of the filed PDF · View the filing
Sales volume: 4.2 million tonnes (Q1 FY27)
p. 4
“Sales volume was 4.2 million tonnes, which fell by around 7% to 8% as compared to the previous year.”
Ashok Panda, page 4 of the filed PDF · View the filing
EBITDA: INR4,356 crores (Q1 FY27)
p. 4
“EBITDA at INR4,356 crores showed for quarter 1 '26-'27 has a growth of more than 50% as compared to CPLY figure of INR2,925 crores.”
Ashok Panda, page 4 of the filed PDF · View the filing
EBITDA margin: 16.7% (Q1 FY27)
p. 4
“EBITDA margin at 16.7% is one of the best since '21-'22, when the steel market at that time was at its peak and coal price was at its bottom in '21-'22.”
Ashok Panda, page 4 of the filed PDF · View the filing
PBT: INR2,159 crores (Q1 FY27)
p. 4
“PBT and PAT stood at INR2,159 crores and INR1,636 crores in quarter 1, respectively, as compared to INR890 crores and INR685 crores, respectively, for CPLY period with a growth of around 150%.”
Ashok Panda, page 4 of the filed PDF · View the filing
Debt: INR21,729 crores (as on 30th June 2026)
p. 5
“this stood at INR21,729 crores as on 30th June, which is almost at the same level of -- the level as on 1st March 2026 was INR21,663 crores.”
Ashok Panda, page 5 of the filed PDF · View the filing
Debt equity ratio: 0.36 (Q1 FY27)
p. 5
“The debt equity ratio was further reduced to 0.36 on actual basis at the end of quarter 1 '26-'27.”
Ashok Panda, page 5 of the filed PDF · View the filing
Average NSR: INR57,100 (Q1 FY27)
p. 5
“Quarter 1 average NSR was INR57,100 as compared to quarter 4 of INR52,000 that means an increase of around INR5,000 per tonne between these 2.”
Ashok Panda, page 5 of the filed PDF · View the filing
Imported coal price: INR21,300 (Q1 FY27)
p. 6
“The imported coal price in quarter 1, '26-'27 was on a higher side, INR21,300 as compared to INR18,100 in quarter 4, means around INR3,100 increase.”
Ashok Panda, page 6 of the filed PDF · View the filing
Iron ore sales from captive mines: INR574 crores (Q1 FY27)
p. 12
“Actually quarter 1, as I told you, the turnover from the sales of iron ore was INR157 crores last year quarter 1. And in this year, quarter 1, it is INR574 crores.”
Ashok Panda, page 12 of the filed PDF · View the filing
Cost of debt: 6.24% (Q1 FY27)
p. 14
“our cost of debt has also come down to a level of 6.24% as compared to last year quarter 1 of around 6.8%.”
Ashok Panda, page 14 of the filed PDF · View the filing
Salary cost: INR2,937 crores (Q1 FY27)
p. 9
“Salary basis this year in quarter 1 is INR2,937 crores as compared to last year's figure of INR2,944 crores, almost at the same level.”
Ashok Panda, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Full year sales volume — FY27
stated firmly by Ashok Panda
p. 6
“Yes, we are maintaining the full year volume, and we'll be having a growth over last year by the year-end.”
Ashok Panda, page 6 of the filed PDF · View the filing
Imported coal cost — reduction of around INR1,000 to INR2,000 progressively · Q2 FY27
stated conditionally by Ashok Panda
p. 6
“We are expecting that in Q2 going forward, maybe from August onwards, there could be a reduction of around INR1,000 to INR2,000 progressively in the coal cost -- in the imported coal cost on a…”
Ashok Panda, page 6 of the filed PDF · View the filing
Capex — INR15,000 crores this year, in excess of INR20,000 crores next year, and INR25,000-26,000 crores thereafter · FY27 through next 4-5 years
stated firmly by Ashok Panda
p. 9
“So far as capex is concerned, this year, we're planning a target of INR15,000 crores, and this is going to increase in the next 2, 3 years because our expanses are on.”
Ashok Panda, page 9 of the filed PDF · View the filing
Indigenous coal supply — from December onwards
stated firmly by Ashok Panda
p. 10
“which is likely to go up from December onwards because production from Tasra mines, which is under development right now is going to take place in the month of -- expectedly in the month of December.”
Ashok Panda, page 10 of the filed PDF · View the filing
Subgrade ore fines auction volume — 3 million tonnes · FY27
stated as an aspiration by Ashok Panda
p. 8
“No, this is the first case actually, once it happens and starts moving, then we'll also see. That is the target for '26-'27.”
Ashok Panda, page 8 of the filed PDF · View the filing
Durgapur TMT bar mill commissioning — 0.8 million to 0.9 million tonnes of TMT · September to December 2027
stated conditionally by Ashok Panda
p. 16
“And that is expected sometime in 2027, maybe September to December 2027, that is the expectation.”
Ashok Panda, page 16 of the filed PDF · View the filing
Cost reduction — INR2,000 to INR3,000 per tonne · this year
stated firmly by Ashok Panda
p. 17
“See, we are looking at a cost reduction of around INR2,000 to INR3,000 in this year itself.”
Ashok Panda, page 17 of the filed PDF · View the filing
Variable cost reduction from IISCO expansion — INR3,000 to INR4,000 per tonne · FY28-29
stated as an aspiration by Ashok Panda
p. 17
“But when we look at a possibility of cost by '28-'29, we'll have new facilities coming up in IISCO steel plant and which will reduce the variable cost drastically because of reduction in the fuel rate, coke rate, etcetera, over there.”
Ashok Panda, page 17 of the filed PDF · View the filing
Coking coal consumption cost — reduction of around INR1,000 to INR1,500 · Q2 FY27
stated conditionally by Ashok Panda
p. 12
“Yes, yes, it will reduce because now the price is softening, so it will reduce only. Maybe there will be a reduction of around INR1,000 to INR1,500 in Q2 compared to Q1.”
Ashok Panda, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Q1 average NSR was Rs 57,100 versus Rs 52,000 in Q4; flat product prices show little reduction while long product prices may improve slightly after a recent dip.
Answered by Ashok Panda
Asked by Alok Deora: What was NSR in Q1 versus Q4, and what is expected for Q2?
p. 5
“Quarter 1 average NSR was INR57,100 as compared to quarter 4 of INR52,000 that means an increase of around INR5,000 per tonne between these 2.”
Ashok Panda, page 5 of the filed PDF · View the filing
NMDC Steel sales were nil this year versus 3.73 lakh tonnes last year; RINL sales were about 93,000 tonnes versus none last year.
Answered by Ashok Panda
Asked by Ritesh Shah: Can you indicate volumes excluding RINL or NMDC Steel sales for the quarter?
p. 7
“So it is still almost kind of nil NSL. But whereas CPLY quarter 1 had 3.73 lakhs of sales. This time, it is 0. In RINL, we sold around 93,000 tonnes, which was not there last year in quarter 1.”
Ashok Panda, page 7 of the filed PDF · View the filing
SAIL holds 32 million tonnes of subgrade fines inventory and has auctioned 3 million tonnes as a target for FY27, with rising sales from Odisha mines and new Chhattisgarh auctions.
Answered by Ashok Panda
Asked by Parthiv: What is the status and target for subgrade ore fines auctions and mine sales?
p. 7
“We are having a volume of around 32 million tonnes inventory in the balance sheet. And we have put up in the auction around 3 million tonnes.”
Ashok Panda, page 7 of the filed PDF · View the filing
Capex target is Rs 15,000 crore this year, rising above Rs 20,000 crore next year and further to Rs 25,000-26,000 crore in subsequent years.
Answered by Ashok Panda
Asked by Pinakin Parekh: What is the updated capex guidance for this year and coming years?
p. 9
“So far as capex is concerned, this year, we're planning a target of INR15,000 crores, and this is going to increase in the next 2, 3 years because our expanses are on.”
Ashok Panda, page 9 of the filed PDF · View the filing
Flat is 52.7%, long is 34.8%, and semis are 12.5% in production terms, though semis are further converted to finished goods before sale.
Answered by Ashok Panda
Asked by Pallav Agarwal: What is the current product mix between flats, longs and semis?
p. 10
“the long is -- flat is 52.7%, long is 34.8% and semis are at 12.5% in quarter 1.”
Ashok Panda, page 10 of the filed PDF · View the filing
Volumes were 1.1 million tonnes in Q1 versus 0.31 million tonnes a year earlier, with revenue of Rs 574 crore versus Rs 157 crore last year.
Answered by Ashok Panda
Asked by Sumangal Nevatia: What was the volume and revenue contribution from captive mine iron ore sales?
p. 11
“So volumes are 1.1 million tonnes. And last year, quarter 1 was 0.31 million tonnes.”
Ashok Panda, page 11 of the filed PDF · View the filing
The main impact was from higher imported coal prices, up about Rs 3,500 versus last year, plus increased fuel and limestone costs, though the fuel impact on SAIL was limited.
Answered by Ashok Panda
Asked by Amit Murarka: What was the cost inflation impact from West Asia developments in Q1?
p. 12
“The increase is primarily from 2 fronts. One is on the coal front because, as you know, there is an increase of around INR3,500 in the coal -- imported coal prices compared to last year quarter 1, which is easing out right now.”
Ashok Panda, page 12 of the filed PDF · View the filing
Debt stood at Rs 21,729 crore at quarter-end, similar to opening levels, with debt-equity ratio improved to 0.36 and further debt reduction to Rs 21,400 crore as of the call date.
Answered by Ashok Panda
Asked by Netra Deshpande: What is the current debt position and deleveraging trend?
p. 14
“So far as today's position is concerned, the debt has further come down to a level of INR21,400 crores.”
Ashok Panda, page 14 of the filed PDF · View the filing
Management expects cost reduction of Rs 2,000-3,000 per tonne this year and larger variable cost reductions of Rs 3,000-4,000 per tonne by FY28-29 from IISCO expansion, partly offset by higher fixed costs.
Answered by Ashok Panda
Asked by Akhilesh Kumar: What cost efficiency initiatives are being pursued and what savings are expected?
p. 17
“by '28-'29 when we start getting this thing production from IISCO steel plant expansion units, the variable cost will come down by around INR4,000 and fixed cost may go up around INR1,500 to INR2,000.”
Ashok Panda, page 17 of the filed PDF · View the filing
Risks flagged
Geopolitical situation in the Middle East disrupting fuel supplies and input supply chains
p. 3
“the period was impacted adversely by the geopolitical situation in the Middle East. Not only did it impact the supplies of fuel across the globe, it also affected the supply chain for inputs like limestone, etcetera.”
Ashok Panda, page 3 of the filed PDF · View the filing
Rising fuel costs creating inflationary pressure on expenditure
p. 3
“the rising fuel cost led to inflationary pressures against raising the various expenditure heads.”
Ashok Panda, page 3 of the filed PDF · View the filing
Higher growth in imports compared to exports increasing net steel imports
p. 3
“Due to higher growth in imports as compared to exports, there was increase in imports as well as increase in exports and the net import for quarter 1 '26-'27 was to the tune of”
Ashok Panda, page 3 of the filed PDF · View the filing
Monsoon season traditionally weakening steel demand and prices in Q2
p. 5
“while Q2 has traditionally been a toughest quarter for the steel industry because of the rain, incidence of rain, etcetera, but efforts are being made not to increase our inventory during quarter 2.”
Ashok Panda, page 5 of the filed PDF · View the filing
Logistics constraints affecting ability to sell subgrade iron ore volumes
p. 12
“Logistics constraint is still there. We are trying to buy with that through better availability of rakes as well as by increasing, enhancing our quantities through road.”
Ashok Panda, page 12 of the filed PDF · View the filing
Increase in limestone costs due to higher ocean freight from Strait of Hormuz situation
p. 13
“in the fluxes because of this ocean freight itself, the prices have gone up for everybody and so also to us.”
Ashok Panda, page 13 of the filed PDF · View the filing
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