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Informist, Monday, Feb. 2, 2026

 

--SAIL: Will incur capex of INR 150 billion for FY27 

--CONTEXT: Comments by SAIL's mgmt in post-earnings analyst call 

--SAIL: Incurred capex of INR 54.28 bln in Apr-Dec

--SAIL: Expect hot metal output of around 21 mln tn by Mar 31 

 

By Ashutosh Pati and Anand JC

 

MUMBAI – Steel Authority of India Ltd. plans a capital expenditure of INR 150 billion in 2026-27 (Apr-Mar), the state-owned steel major's management told analysts in a post-earnings conference call Monday. In the current financial year, the company sees the capital expenditure at INR 75 billion to INR 100 billion, having already incurred INR 54.28 billion in the nine months ended December.

 

In Apr-Dec, SAIL produced 15.14 million tonnes of hot metal. By the end of FY26, it expects production of hot metal to be around 21 million tonnes. In FY27, the company sees production of hot metal at 22.5 million tonnes. It sees FY26 sales volumes around 19.5 million tonnes. For the nine months ended December, the sales volume was 14.6 million tonnes.

 

The company expects a major boost to its profitability once the expansion at IISCO Steel Plant in Burnpur, West Bengal, is completed. "They're going to finish in three years' time. That is the timeline. And we believe after we get that, then the production volume, the margin, which will come from there, will really bolster our profitability to a greater extent," the management said.

 

SAIL's earnings before interest, tax, depreciation, and amortisation per tonne were INR 6,000-INR 7,000 in the December quarter. The company expects this to rise to over INR 10,000 per tonne after the completion of the IISCO Steel plant.

 

While steel prices remained subdued in the December quarter, SAIL expects to see an uptick in prices in the March quarter. "Going forward, as the monsoon season and festive seasons are already over, we hope that the market will see an uptick in the pricing in quarter four," the management said. They also expect an improvement in the company's margins in this quarter.

 

Debottlenecking at the Durgapur Steel Plant has already started and is expected to be over in around 18 months, the management said. SAIL reported a standalone net profit of INR 4.42 billion for the December quarter, on revenue of INR 273.71 billion. At 1458 IST, shares of the company were down 0.7% at INR 147.61 on the National Stock Exchange.  End

 

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

 

Edited by Ashish Shirke

 

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