SAIL Reports 318% Surge in Q2 Profit to ₹1,750.5 Crore

Steel Authority of India Limited (SAIL) announced a remarkable 318.1% increase in its standalone net profit for the second quarter of the financial year 2026-27, reaching ₹1,750.5 crore. This substantial growth is attributed to strong sales volumes and effective cost control measures, despite the profit falling short of market expectations, which had estimated a profit of ₹2,200 crore.

The company's revenue from operations also showed a healthy increase, climbing 19.8% year-on-year to ₹31,998 crore, surpassing the CNBC-TV18 poll estimate of ₹31,855 crore. This growth reflects SAIL's strategic initiatives to enhance sales outreach, particularly to retail and other consumer segments, contributing to a 5% rise in sales volume during the quarter.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) for SAIL increased significantly by 66.8%, amounting to ₹4,216 crore compared to ₹2,528 crore in the same quarter last year. However, this figure did not meet the market's forecast of ₹4,765 crore. The EBITDA margin improved by 373 basis points to 13.2% from 9.47%, although it still fell short of the expected 14.96%.

SAIL's efforts to reduce its debt have also been notable, with borrowings decreasing to ₹20,583 crore. Dr. A K Panda, Chairman and Managing Director of SAIL, emphasized the company's operational resilience and financial prudence amid global market challenges. He highlighted a 24% quarter-on-quarter growth in sales volume, driven by robust production and improved raw material usage, alongside a significant rise in iron ore production and sales.

Looking ahead, SAIL aims to maintain its momentum by focusing on enhancing techno-economic parameters, rationalizing costs, and increasing the share of high-end products to boost profitability. The company's shares closed at ₹171.50, reflecting a slight increase of 0.94% on the Bombay Stock Exchange.