Note: The source material provided does not include explicit revenue splits by product or region. It does contain detailed operational and financial performance, guidance, risks, and project plans, which are summarized below.

SAIL closes FY26 with higher sales, stronger profits, and a lighter debt load

Steel Authority of India Limited (SAIL) ended FY26 with a clear improvement in operating momentum and balance sheet metrics. The company reported standalone revenue from operations of Rs 110,810 crore in FY26 versus Rs 102,478 crore in FY25. EBITDA rose to Rs 13,146 crore, and profit after tax increased to Rs 3,233 crore.

The volume story was equally important. FY26 sales volume reached 19.93 million tonnes, which management described as the highest ever. The company also highlighted inventory liquidation as a key lever, with a reduction of about 0.9 million tonnes for the year. This translated into a meaningful reduction in borrowings and finance cost.

In Q4 FY26, the recovery was sharper. Revenue from operations was Rs 30,813 crore, EBITDA was Rs 4,762 crore, and PAT was Rs 1,680 crore. Management attributed the quarter’s step-up to stronger operational performance, improved dispatches, and better control on consumption and efficiency parameters.

FY26 operational performance: volumes and efficiency moved together

SAIL’s FY26 snapshot in the presentation shows crude steel production at 19.434 million tonnes and saleable steel production at 19.177 million tonnes. Hot metal production was 20.483 million tonnes. Total sales were 19.932 million tonnes, with domestic sales of 19.667 million tonnes and exports of 0.266 million tonnes.

On techno-economic parameters, the company continued to trend better year-on-year. Coke rate declined to 419 kg/thm in FY26 (from 421 kg/thm in FY25). Blast furnace productivity improved to 2.09 T/m3/day (from 2.02). Specific energy consumption declined to 6.18 GCal/tcs (from 6.26).

Management added context in the concall: the reduction in coke rate was linked to higher PCI and higher oxygen usage in blast furnaces. They also said the productivity improvement was supported by higher operational efficiency and a shift away from smaller, inefficient furnaces toward higher output from larger furnaces.

Financial performance: stronger earnings and lower finance cost

SAIL’s standalone financial table shows the following shift from FY25 to FY26:

The company also reported an EBITDA margin of 11.95% in the FY26 snapshot, and EBITDA per tonne of Rs 6,595 in the profitability trend slide.

A second important driver was deleveraging. The presentation shows non-Ind AS borrowings reducing from Rs 29,811 crore in Mar 2025 to Rs 21,663 crore in Mar 2026. Net worth increased from Rs 55,566 crore to Rs 58,195 crore over the same period. Non-Ind AS debt-equity improved from 0.54 to 0.37.

Management stated that borrowings reduced by about Rs 8,150 crore over FY26 and that the average cost of borrowings declined from about 7.3% to 6.2%, which supported the fall in finance costs.

Pricing and cost signals into Q1 FY27

The concall provided additional near-term indicators on realizations and key inputs.

Management disclosed that in Q4 FY26, average NSR for long products was Rs 53,400 per tonne and for flats was Rs 51,000 per tonne. For April, they indicated long NSR at around Rs 57,600 per tonne and flat NSR at around Rs 56,700 per tonne. For mid-May expectations, long NSR was cited at around Rs 57,800 per tonne and flat NSR around Rs 56,000 per tonne.

On the cost side, management cited coking coal average procurement price of Rs 18,200 in Q4, rising to about Rs 21,000 in April and Rs 21,800 in May. They also noted that the realized cost impact would be softer due to blending with inventory (about 30 days of stock).

They also referenced a specific cost exposure related to fluxes sourced from the Middle East, but said the impact on saleable steel cost would be limited (around Rs 100 to Rs 200 per tonne) and that the larger concern was supply security.

Guidance: volume ambition, capex step-up, and efficiency as the bridge

Management gave multiple forward-looking targets.

On volumes, they indicated:

• FY27 sales volume target of around 22 million tonnes
• Crude steel production target of about 22.5 million tonnes for FY27
• Current crude steel capacity stated at about 21 million tonnes, with the higher target expected through debottlenecking and operational efficiencies

They clarified that the volume target could include third-party sales (including RINL), with a separate indication that RINL product sales could reach about 0.6 to 0.7 million tonnes in FY27.

On capex, management guided:

• FY26 capex was around Rs 9,100 crore
• FY27 capex guidance of about Rs 15,000 crore
• FY28 capex could rise to about Rs 18,000 to 19,000 crore
• Annual capex could move toward Rs 20,000 to 25,000 crore as expansion accelerates

They outlined expansion plans across three major plants:

• IISCO capex around Rs 35,000 to 36,000 crore for around 4.5 million tonnes
• Bhilai capex around Rs 30,000 crore for around 3.5 million tonnes
• Bokaro capex around Rs 18,000 crore for around 3 million tonnes

However, they also stated that new capacity would begin to come only after about three years, around FY30-31. This implies the near-term operating plan rests more on sweating existing assets than immediate capacity additions.

Balance sheet, dividend, and what the announcements add

In its stock exchange announcement, the company stated that the board recommended a final dividend of Rs 2.35 per equity share of Rs 10 each for FY26, payable within 30 days of shareholder approval in the AGM.

The press release also reinforced a few operational highlights, including best-ever production and sales volume, highest ever revenue from operations, and debt reduction of Rs 8,148 crore over the corresponding previous year.

Key risks and disclosures to track

The documents also contain several risk and governance disclosures that investors typically monitor.

First, the auditor’s report flagged non-compliance in board composition requirements under the Companies Act and SEBI LODR up to 31 March 2026, due to non-availability of requisite independent and non-executive directors. It also stated that from 21 April 2026, the company again ceased to have requisite independent and non-executive directors and did not have a woman director, with consequent non-compliance in certain board committees.

Second, SAIL disclosed sales to certain government agencies at provisional prices until final pricing is agreed. The note disclosed provisional-price-based sales to government agencies of Rs 9,723.71 crore for FY26.

Third, the notes disclose sizable contingent liabilities. These include disputed entry tax in Jharkhand of Rs 111.43 crore and a Jharkhand water resources department demand treated as contingent liability of Rs 1,146.44 crore as on 31 March 2026.

Fourth, the disclosures indicate liquidity tightness in working capital terms. Under regulation 52(4), the current ratio was disclosed at 0.82 at 31 March 2026, and the note states that working capital is negative.

Takeaways

SAIL’s FY26 performance is anchored in higher sales volumes, improved operational metrics, and a deliberate working capital and debt reduction effort that lowered finance cost. Guidance for FY27 indicates an aggressive push on volumes and a sharp step-up in capex, with near-term output improvement expected from debottlenecking and efficiency rather than new capacity.

The key swing factors to monitor remain steel realizations versus coking coal costs, delivery on the Rs 15,000 crore capex plan, and the governance and contingent liability disclosures flagged in the financial filings.