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Informist, Thursday, Oct. 30, 2025

 

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--SAIL: Imported coal prices to rise from current levels going ahead 
--CONTEXT: Comments by SAIL's management in post-earnings analyst call 
--SAIL: See higher sales growth in FY27 than FY26 on debottlenecking efforts 
--SAIL: See demand improving in next two quarters 
--SAIL: Sales realisations to improve in coming quarters 
--SAIL: See total capex in FY26 at INR 75 bln 
--SAIL: Prices of long steel remain flat on month in Oct 
--SAIL: Prices of flat steel fell marginally on month in Oct 
--SAIL: Targeting volume growth of 5-7% on year in FY27 
--SAIL: EBITDA margin may rise to 14-15% in Q4 
 

 
By Avishek Rakshit and Akash Mandal

 

MUMBAI – Steel Authority of India Ltd. Thursday said it expects demand for steel to improve in the next two financial quarters and in the coming financial year, though it remains muted currently. In view of the debottnecking efforts across its plants, the company aims for 5-7% volume growth in 2026-27 (Apr-Mar). 
 
Prices of long steel products, which are elongated steel items such as bars, rods, beams, and rails, used primarily in construction and manufacturing due to their strength and versatility, remained flat in October compared to September, Ashok Kumar Panda, director of finance at SAIL, told sector analysts in a post-earnings telephonic call. 
 
Prices of flat steel products, which include sheets, coils, and plates produced from processes like hot-rolling, cold-rolling, or coating and have various uses in home appliances, car parts, construction and shipbuilding, declined marginally in October, Panda said.

"In FY26-27 will have broad-linked efforts that are going on because of which production volumes, as well as sales volume will increase. We've been making a lot of strategy to increase the sales, both on the domestic front as well as on the export front to some extent," Panda said. "With the global trends are not very good, but in India we are expecting that it (demand) will improve in later part of Q3 and Q4."

 

Panda said SAIL is making efforts to reduce its inventory and at the same time, carrying out debottlenecking efforts to increase production and sales. The official said it is expected that sales volume may go up on account of demand conditions improving in the near term and based on higher sales volume, the company's realisations per tonne of sales may increase. 

 

"Even if sales prices come down, but we can find that realisation to come up primarily because of more sales," Panda said. 

However, coking coal prices may increase marginally going ahead, which could inflate costs.

 

"Imported coal prices will remain a little higher as compared to what it is today. Today, it is around INR 17,400. It may go towards INR 18,000-18,100 in Q3 (Oct-Dec)," the senior company official said. 

 

While the sales growth may come in from improved demand conditions and the debottlenecking efforts SAIL is taking, the company may end up spending over INR 75 billion as capital expenditure in FY26. 

 

Responding to questions from sector analysts, Panda said the sales volume in FY27 may increase 5-7% and the earnings before interest, tax, depreciation, and amortisation margin may go up to 14-15% in the March quarter.

 

At 1158 IST, shares of SAIL traded 3.3% higher at INR 135.90 on the National Stock Exchange.  End  

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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