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Informist, Wednesday, Jul. 22, 2026

 

By Astha Oriel

 

NEW DELHI – Steel Authority of India Ltd. is likely to report a sharp on-year rise in its consolidated net profit for the June quarter due to a significant increase in net sales realisations and higher steel prices, despite a decline in volume, according to brokerages tracking the company. The company's top line is expected to show a marginal increase, analysts said. 

 

The company's net profit is expected to be at INR 15.10 billion, up over 120% on year but down nearly 25% on quarter, according to the average of estimates by 17 brokerages. The highest bottom line estimate is INR 22.74 billion from Emkay Global Financial Services Ltd., and the lowest is INR 6.69 billion from PhillipCapital (India) Pvt. Ltd. This is likely to be the third consecutive quarter of year-on-year increase in the net profit.  

 

The net sales are expected to be INR 269.72 billion, up over 4% on year, but down over 12% sequentially, according to the brokerages' estimates. The highest net sales estimate is INR 296.46 billion by JM Financial Institutional Securities Pvt Ltd., and Anand Rathi Share and Stock Brokers Ltd. has the lowest estimate at INR 253.12 billion. This is likely to be the seventh consecutive quarter of an on-year increase in net sales. However, the on-year rise will be slower than the preceding quarters.

 

Five brokerage firms estimate the company's sales volumes to decline to 4–4.4 million tonnes in the June quarter. JM Financial Institutional Securities, however, expects the sales volume at 4.9 million tonnes. In the year-ago quarter, the company's sales volume was at 4.55 million tonnes. The company's net sales realisation per tonne is expected to be INR 61,120 – INR 65,242, according to five brokerage estimates.  

 

The earnings before interest, tax, depreciation, and amortisation are expected at INR 37.75 billion, up over 29% on year, but down nearly 21% on quarter, according to the average of estimates by 15 brokerages. Emkay Global Financial Services has the highest EBITDA estimate at INR 45.69 billion, whereas the lowest EBITDA estimate is INR 27.15 billion by PhillipCapital (India).

 

Four brokerages expect the EBITDA margin to expand to 12.5-15.7%. PhillipCapital (India) expects the EBITDA margin to contract to 10%. In the year-ago quarter, the company's EBITDA margin was 11.2%. The company's EBITDA per tonne is expected to be INR 8,953-INR 9,602, according to estimates from six brokerages. In the year-ago quarter, the company's EBITDA per tonne was INR 6,400. 

 

The company will announce its June quarter earnings on Friday. Analysts will watch the management's comments on updates on capacity expansion projects, debt reduction, contribution of low margin products, and semi-finished products, and Rashtriya Ispat Nigam Ltd.

 

At 1358 IST, shares of the company were 1.3% lower at INR 161.93 on the National Stock Exchange. This is nearly 16% lower than the company's share price after the March quarter earnings were released on May 15. 

 

Of the 15 brokerage reports available on the company with Informist, eight brokerages have given a 'buy' rating on the stock with an average target price of INR 193 per share. This is over 19% higher than the current share price. Three brokerages have given a 'hold' rating on the stock with an average target price of INR 200, and four have given a 'sell' rating on the stock with a target price of INR 160. 

 

Following are the June quarter earnings estimates for Steel Authority of India from 17 brokerages in descending order of the estimate of net profit in INR billion:

 

Brokerage	Net sales	Net profit	Net EBITDA
Emkay Global Financial Services Ltd	288.10	22.74	45.69
360 ONE Capital Market Pvt Ltd	287.10	19.91
Kotak Securities Ltd	265.46	18.03	41.63
IDBI Capital Market Services Ltd	296.12	17.80	43.18
Motilal Oswal Financial Services Ltd	258.00	17.30	40.30
Equirus Securities Pvt Ltd	255.41	16.15	38.39
Elara Securities (India) Pvt Ltd	256.95	16.03	40.65
Prabhudas Lilladher Pvt Ltd	277.90	15.90	41.10
ICICI Securities Ltd	253.54	15.40	36.90
JM Financial Institutional Securities Pvt Ltd	296.46	15.27	38.42
Axis Securities Ltd	288.81	15.11	37.30
Anand Rathi Share and Stock Brokers Ltd	253.12	15.09
Nuvama Wealth Management Ltd	260.83	14.35	39.09
YES Securities (India) Ltd	259.75	10.91	32.29
Systematix Shares and Stocks (India) Ltd	261.70	10.70	32.80
HDFC Securities Ltd	254.58	9.27	31.36
PhillipCapital (India) Pvt Ltd	271.43	6.69	27.15
Average	269.72	15.10	37.75

 

End

 

Edited by Avishek Dutta

 

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