Financial Performance Overview:
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Steel Authority of India Ltd (SAIL) reported consolidated revenue from operations of Rs 259.21 billion for the June quarter of FY26.
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Net profit stood at Rs 6.85 billion, reflecting a resilient bottom-line performance amid a 2.9 percent year-on-year decline in topline.
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EBIT margin contracted to 7.52 percent from 6.85 percent in the previous quarter, indicating cost pressures and subdued realizations.
Operational Metrics and Cost Structure:
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Total expenses rose to Rs 252.36 billion, driven by higher input costs and employee expenses, which accounted for 11.39 percent of operating revenue.
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Interest expenses remained contained at 2.73 percent of operating revenue, supporting net margin stability.
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Capacity utilization across integrated steel plants averaged 82 percent, with Bhilai and Rourkela units contributing significantly to output.
Strategic Developments and Market Outlook:
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SAIL continued its expansion into export markets, recently opening a new office in Dubai to strengthen global presence.
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The company maintained its guidance for FY26, targeting improved product mix and higher value-added steel output.
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Analysts expect margin recovery in H2 FY26, contingent on global steel demand and domestic infrastructure spending.
Investor Sentiment and Shareholding Trends:
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Promoter holding remained stable at 65 percent, with no pledged shares.
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FII stake increased to 3.65 percent, while DII holdings rose to 17.29 percent, indicating institutional confidence.
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SAIL shares traded at Rs 135.85 on NSE as of July 24, 2025, with a dividend yield of 1.19 percent.
Source: Economic Times – July 24, 2025 Moneycontrol – July 24, 2025 SAIL Investor Relations – July 24, 2025