Steel Authority of India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Steel Authority of India Ltd filed with BSE on 20 May 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 Q4 FY26 crude steel production up 4% to 4.9 million tons and sales volume up 4% to 5.3 million tons, with sales turnover rising 5% to Rs 30,541 crore. For full year FY26, the company posted its highest ever sales volume of 19.9 million tons, an 8% rise in sales turnover to close to Rs 110,000 crore, and PBT and PAT growth of 44% and 51% respectively. Management also cited a debt reduction of Rs 8,150 crore during the year and said the balance sheet was clean of qualifications for the first time in many years.
1 statement from this call is not shown because its supporting quote 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: 4.9 million tons (Q4 FY26)
p. 4
“crude steel production grew by 4% to stand at 4.9 million tons as against 4.7 million tons in the previous year quarter 4”
Ashok Panda, page 4 of the filed PDF · View the filing
Sales turnover: INR30,541 crores (Q4 FY26)
p. 4
“sales turnover has also grown by 5% in quarter 4 to INR30,541 crores”
Ashok Panda, page 4 of the filed PDF · View the filing
Sales volume: 19.9 million tons (FY26)
p. 4
“Company has posted highest ever sales volume at 19.9 million tons, almost like 20 million tons, which marginally -- I mean, it is close to 20 million tons with a growth of 11% as compared to the previous year”
Ashok Panda, page 4 of the filed PDF · View the filing
Sales turnover: close to INR110,000 crores (FY26)
p. 4
“The sales turnover is close to INR110,000 crores in this year, which has grown by 8% compared to the previous year”
Ashok Panda, page 4 of the filed PDF · View the filing
Debt reduction: INR8,150 crores (FY26)
p. 5
“the borrowings have also come down by around INR8,150 crores in FY '25-'26, which has given sterling advantages in terms of finance cost to us”
Ashok Panda, page 5 of the filed PDF · View the filing
Cost of borrowings: 6.2% (FY26)
p. 5
“the cost of borrowings has also come down from a level of 7.3% in the previous year to 6.2% this year”
Ashok Panda, page 5 of the filed PDF · View the filing
PBT growth: 44% (FY26)
p. 5
“the PBT, profit before tax for '25-'26, there is a growth of 44%. And in PAT numbers, the growth is 51%”
Ashok Panda, page 5 of the filed PDF · View the filing
Blended NSR: INR52,000 per ton (Q4 FY26)
p. 13
“Blended NSR for the quarter 4 is INR52,000 per ton. And in April, it is around INR57,000 per ton, April and May”
Ashok Panda, page 13 of the filed PDF · View the filing
Coking coal average price: INR18,200 (Q4 FY26)
p. 7
“Coking coal, when we look at actually in quarter 4, the coking coal average price is INR18,200, which has gone up in April and May”
Ashok Panda, page 7 of the filed PDF · View the filing
Employee count: 49,752 (As on 1st April 2026)
p. 8
“the numbers are 49,752 as compared to 53,159 opening of this year”
Ashok Panda, page 8 of the filed PDF · View the filing
Net debt to equity: 0.37
p. 16
“Our net debt to equity right now is around 0.33, how much? Right now it is 0.37”
Ashok Panda, page 16 of the filed PDF · View the filing
NSL volume: 1.12 million tons (FY26)
p. 9
“NSL volume in totality is 1.12 million tons”
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.
Sales volume — 22 million tons · FY27
stated firmly by Ashok Panda
p. 5
“So this year, we're expecting 22 million tons. That is the kind of target, 10% on the higher side, we're keeping it.”
Ashok Panda, page 5 of the filed PDF · View the filing
Capex — INR15,000 crores · FY27
stated firmly by Ashok Panda
p. 6
“Guidance for '26-'27 is INR15,000 crores.”
Ashok Panda, page 6 of the filed PDF · View the filing
Crude steel capacity utilisation — 22.5 million tons · FY27
stated firmly by Ashok Panda
p. 10
“I think it is 22.5 million tons so far as our target is concerned for '26-'27.”
Ashok Panda, page 10 of the filed PDF · View the filing
New capacity commissioning — FY31
stated firmly by Ashok Panda
p. 10
“New capacity will start coming after 3 years from now, means from '30-'31.”
Ashok Panda, page 10 of the filed PDF · View the filing
Coke rate reduction — further by INR20/kg · FY27
stated as an aspiration by Ashok Panda
p. 11
“We need to reduce further by INR20/kg in '26-'27.”
Ashok Panda, page 11 of the filed PDF · View the filing
Employee remuneration cost — FY27
stated conditionally by Ashok Panda
p. 9
“I'm expecting that it will further come down in '26-'27 despite having VRS impact also, because the overall strength will come down by 3,000-odd.”
Ashok Panda, page 9 of the filed PDF · View the filing
RINL product sales — 0.6 million tons or 0.7 million tons · FY27
stated firmly by Ashok Panda
p. 9
“So in '26-'27, RINL products will be sold to the tune of around 0.6 million tons or 0.7 million tons. It will increase for RINL.”
Ashok Panda, page 9 of the filed PDF · View the filing
Iron ore production — 56 million tons · FY27
stated firmly by Ashok Panda
p. 14
“this year, we have kept a target of 56 million tons, out of which some quantity will be sold”
Ashok Panda, page 14 of the filed PDF · View the filing
Iron ore production — 80 million tons
stated as an aspiration by Ashok Panda
p. 14
“going forward, we are trying to ramp up to 80 million tons”
Ashok Panda, page 14 of the filed PDF · View the filing
Inventory levels — zero increase · Q1 FY27
stated as an aspiration by Ashok Panda
p. 17
“We are looking at zero-zero in quarter 1. I mean, let's look at that. Let's see how it works out.”
Ashok Panda, page 17 of the filed PDF · View the filing
Net debt to equity — FY27
stated conditionally by Ashok Panda
p. 16
“So if that is so, then 0.37 will further come down in '26-'27, if that happens.”
Ashok Panda, page 16 of the filed PDF · View the filing
Salem Steel Plant CR mill yield — 90%
stated as an aspiration by Ashok Panda
p. 17
“So in CR mill, where the yield right now is only 84%, 83%, we are trying to increase it to 90%.”
Ashok Panda, page 17 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.
Management guided to 22 million tons of sales this year and gave capex figures rising from Rs 9,100 crore in FY26 to Rs 15,000 crore in FY27 and over Rs 20,000 crore in FY28, with IISCO, Bokaro and Bhilai expansions in progress.
Answered by Ashok Panda
Asked by Chaitanya Iyer: What is the sales volume guidance for FY27 and FY28, and the capex plans and update on the three plant expansions?
p. 6
“Capex in '25-'26, we ended up -- I mean, target was INR10,000 crores, we ended up around INR9,100 crores, something like that. Guidance for '26-'27 is INR15,000 crores.”
Ashok Panda, page 6 of the filed PDF · View the filing
Management gave NSR levels for long and flat products in Q4 versus April and May, and coking coal average prices for the same periods, noting an increase of roughly Rs 3,000-3,500 per ton in coking coal.
Answered by Ashok Panda
Asked by Sumangal Nevatia: What was the Q4 realization and expected NSR increase in Q1 FY27, and coking coal cost trends?
p. 7
“In May, mid-month, expected May, long NSR is INR57,800, same level, and flat also INR56,000.”
Ashok Panda, page 7 of the filed PDF · View the filing
Management said headcount would keep declining by about 3,400-3,500 per year with some induction, and that pay revision effects from January 2027 would be additional to current guidance once government guidelines are received.
Answered by Ashok Panda
Asked by Sumangal Nevatia: What is the outlook for employee cost given headcount reduction and pay commission revision?
p. 8
“So far as pay revision is concerned, that will be applicable from 1st January 2027. Guideline is yet to come from government because the committees are yet to be formed.”
Ashok Panda, page 8 of the filed PDF · View the filing
Management projected capex rising from Rs 15,000 crore in FY27 to Rs 18,000-19,000 crore in FY28, and Rs 20,000-25,000 crore annually thereafter as expansions progress.
Answered by Ashok Panda
Asked by Pinakin Parekh: What is the medium-term capex outlook over the next 3-4 years?
p. 11
“In '27-'28, it can be around INR18,000 crores, INR19,000 crores.”
Ashok Panda, page 11 of the filed PDF · View the filing
Management gave individual capex figures and capacity additions for each of the three plants.
Answered by Ashok Panda
Asked by Raashi: What is the breakdown of capex and capacity for the IISCO, Bokaro and Bhilai expansion projects?
p. 13
“capex of IISCO is around INR36,000 crores -- maybe INR35,000 crores. And Bhilai, which is yet to be announced is around INR30,000 crores, and Bokaro is somewhere around INR18,000 crores, something like that.”
Ashok Panda, page 13 of the filed PDF · View the filing
Management said there were no major renewal issues except for Chiria, where they are pursuing a new mining lease rather than a renewal.
Answered by Ashok Panda
Asked by Pallav Agarwal: Is there any risk to iron ore mine leases expiring around 2030?
p. 14
“So far as renewals are concerned, major renewals, no issues, except the Chiria thing, which everybody knows about it.”
Ashok Panda, page 14 of the filed PDF · View the filing
Management said they aim to fund capex largely through internal accruals from improved profitability, with incremental funding from long-term borrowings.
Answered by Ashok Panda
Asked by Parthiv Jhonsa: Will rising capex be funded mostly through debt given similar cash flow levels?
p. 15
“the incremental will come from the long-term loans, borrowings.”
Ashok Panda, page 15 of the filed PDF · View the filing
Management explained that theoretical DPR capacities are routinely exceeded through better enablers, raw materials and operational practices across the industry.
Answered by Ashok Panda
Asked by Parthiv Jhonsa: How can SAIL justify utilisation above 100% of theoretical installed capacity?
p. 16
“If DPR said it is 2.3, they can easily go to 3 for productivity. This is what is happening with us, with JSW, with Tata Steel and everybody.”
Ashok Panda, page 16 of the filed PDF · View the filing
Management said they aim for no inventory increase in Q1, expect Q2 to be more challenging, and expect reduction to resume in Q3 and Q4.
Answered by Ashok Panda
Asked by Rajesh Majumdar: Given the sharp debt reduction this quarter from inventory liquidation, is inventory build-up expected in coming months with monsoon and rising prices?
p. 17
“So quarter 3 and quarter 4 will have good amount of inventory reduction. So quarter 2 will be quite challenging as compared to quarter 1.”
Ashok Panda, page 17 of the filed PDF · View the filing
Management outlined actions including improving CR mill yield, replacing LPG with PNG, sourcing cheaper power, and importing stainless steel slabs to ramp up production and reduce losses.
Answered by Ashok Panda
Asked by Rajesh Majumdar: What are the plans for the loss-making Salem stainless steel setup?
p. 17
“the management guidance is to increase the production from Salem Steel Plant, whereby the losses will come down and more availability of stainless steel within the market.”
Ashok Panda, page 17 of the filed PDF · View the filing
Risks flagged
Geopolitical situation in the Middle East and Strait of Hormuz disruptions affecting fuel and raw material movement
p. 4
“the steel industry globally is impacted and especially impacted because of this Strait of Hormuz situation in terms of fuel constraints as well as in terms of raw material movement through that port”
Ashok Panda, page 4 of the filed PDF · View the filing
Rising landed cost of imported fluxes and limestone from Dubai
p. 7
“the landed cost, the CFR cost is going to go up, because it was around, say, $23, $24, now it will be around $35”
Ashok Panda, page 7 of the filed PDF · View the filing
Uncertainty over rail price revision impact in FY27
p. 14
“we can't say anything about whether we'll get an advantage from rail price revision or we'll get a negative on rail price revision. So things are not very clear at this point of time”
Ashok Panda, page 14 of the filed PDF · View the filing
Coking coal cost increase in Q1 FY27 impacting cost of production
p. 18
“So you can say that the cost impact will be around INR1,400 to INR1,500 per ton”
Ashok Panda, page 18 of the filed PDF · View the filing
Muted demand and destocking typically seen in Q1 and Q2
p. 18
“Generally, demand remains muted in quarter 1 and quarter 2, as all of us have seen, on the back of more sales in quarter 4”
Ashok Panda, page 18 of the filed PDF · View the filing
Salem stainless steel unit continuing to incur losses
p. 17
“So far as Salem is concerned, the bleeding, as you're correct, but we are trying -- we have got a plan to reduce the bleeding and improve the EBITDA levels over there”
Ashok Panda, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.