This article first appeared on GuruFocus .
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Crude Steel Production (Q4 FY25-'26):Increased by 4% to 4.9 million tonnes.
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Sales Volume (Q4 FY25-'26):Grew by 4% to 5.3 million tonnes.
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Sales Turnover (Q4 FY25-'26):Increased by 5% to INR 30,541 crore.
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Profit Before Tax (Q4 FY25-'26):Improved by 48%.
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Profit After Tax (Q4 FY25-'26):Increased by 43%.
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Debt Reduction (Q4 FY25-'26):Reduced by INR 3,200 crore.
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Crude Steel Production (FY25-'26):Grew by 1% to 19.4 million tonnes.
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Saleable Steel (FY25-'26):Increased by 7% to 19.2 million tonnes.
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Sales Volume (FY25-'26):Reached highest ever at 19.9 million tonnes, up 11%.
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Sales Turnover (FY25-'26):Approximately INR 110,000 crore, up 8%.
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Inventory Reduction (FY25-'26):Reduced by close to 1 million tonnes.
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Borrowings Reduction (FY25-'26):Decreased by INR 8,150 crore.
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Cost of Borrowings (FY25-'26):Reduced from 7.3% to 6.2%.
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Profit Before Tax (FY25-'26):Increased by 44%.
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Profit After Tax (FY25-'26):Grew by 51%.
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Release Date: May 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Steel Authority Of India Ltd ( BOM:500113 ) reported a 48% increase in profit before tax (PBT) and a 43% increase in profit after tax (PAT) for Q4 compared to the previous year.
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The company achieved a significant debt reduction of INR 3,200 crore in Q4 and INR 8,150 crore for the full fiscal year, improving its financial position.
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Crude steel production grew by 4% in Q4, reaching 4.9 million tonnes, while sales volume increased by 4% to 5.3 million tonnes.
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The company posted its highest-ever sales volume at 19.9 million tonnes for the fiscal year, marking an 11% growth compared to the previous year.
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Steel Authority Of India Ltd ( BOM:500113 ) achieved a clean balance sheet with no qualifications for the first time in many years, indicating improved financial management.
Negative Points
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The global economic scenario remains uncertain due to geopolitical tensions in the Middle East, impacting the steel industry.
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Despite the increase in production, the company faces challenges from rising coking coal prices, which increased by INR 3,000 to INR 3,500 in recent months.
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The company anticipates potential demand slowdowns in Q1 and Q2 due to seasonal effects and destocking activities.
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Employee costs remain a concern, with upcoming pay commission revisions potentially increasing expenses.
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The company's stainless steel segment continues to underperform, with ongoing losses at the Salem Steel Plant.
Q & A Highlights
Q: What is the sales volume guidance for the next two fiscal years, and what is the CapEx update for the expansion at three plants? A: Sales volume for the last year was around 20 million tonnes, and this year, we are targeting 22 million tonnes, a 10% increase. CapEx for FY26 was around INR9,100 crore, with a target of INR15,000 crore for FY27. The expansion projects at IISCO, Bokaro, and Bhilai are ongoing, with significant CapEx expected in the coming years.
Q: Is there any further scope for downward revision in rail prices, and what factors contributed to the sharp recovery in EBITDA at the Bokaro Steel Plant? A: Rail prices are currently provisional, and any changes will depend on government decisions. The sharp recovery in Bokaro's EBITDA was due to improved operational efficiency and the absence of previous breakdowns and repairs that affected performance in FY25.
Q: What was the realization in Q4, and what is the expectation for price increases in Q1 FY27? A: In Q4, the average NSR for long products was INR53,400 and INR51,000 for flat products. In April, NSR for long products increased to INR57,600 and INR56,700 for flat products, with similar levels expected in May.
Q: How is the company managing employee costs, and what is the outlook for FY27 and FY28? A: Employee numbers are reducing, with a decrease of around 3,400 employees last year. This reduction is expected to continue, with some new hires at lower levels. The pay revision applicable from January 2027 will depend on government guidelines, and the company is prepared to absorb these costs.
Q: What is the medium-term CapEx outlook, and how will it ramp up over the next few years? A: CapEx for FY27 is INR15,000 crore, expected to increase to INR18,000-19,000 crore in FY28, and further to INR20,000-25,000 crore annually as expansion projects at IISCO, Bokaro, and Bhilai progress.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
