New Delhi: Steel Authority of India Limited (SAIL) reported modest growth in steel production during the first half of FY2026-27, with crude steel output rising 1% year-on-year to 9.6 million tonnes (MT) in April–September. Finished steel production also increased 1% to 8.39 MT, while hot metal production grew 2% to 10.2 MT.
The production figures indicate limited volume growth during the first six months of the financial year. However, the company recorded an improvement in its production mix, with finished steel accounting for a larger share of its total saleable steel output.
SAIL also reported higher dispatches of long rails to Indian Railways and increased supplies of wheels and axles, providing some support to its performance in specialised steel products.
The results come amid expectations of continued growth in India’s steel demand, supported by infrastructure development, construction activity and the automobile sector.
SAIL Crude Steel Production Rises 1% to 9.6 MT
SAIL’s crude steel production increased to 9.6 MT during April–September FY2026-27, compared with the corresponding period of the previous financial year.
The 1% year-on-year growth reflects a relatively modest increase in steel output during the first half of the financial year. Finished steel production also grew at the same rate, reaching 8.39 MT.
Hot metal production performed slightly better, increasing 2% year-on-year to 10.2 MT.
Key production highlights for H1 FY2026-27:
- Crude steel production: 9.6 MT, up 1% year-on-year.
- Hot metal production: 10.2 MT, up 2% year-on-year.
- Finished steel production: 8.39 MT, up 1% year-on-year.
The figures highlight a relatively stable production performance, with output increasing across all three categories but without a significant acceleration in overall volumes.
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Finished Steel Share Improves to 89.2% of Saleable Output
One of the notable developments in SAIL’s first-half performance was the improvement in its finished steel share.
Finished steel accounted for 89.2% of the company’s total saleable steel output, compared with 86.8% in the corresponding period a year earlier. This represents an increase of 2.4 percentage points.
Finished steel share comparison:
- H1 FY2025-26: 86.8%.
- H1 FY2026-27: 89.2%.
- Increase: 2.4 percentage points.
The higher share indicates that a greater proportion of saleable steel output reached the finished-product stage.
However, the improvement in product mix does not necessarily translate into higher profitability on its own. Realisations, product categories, market demand and production costs will also influence the company’s financial performance.
SAIL did not disclose the absolute saleable steel production figure in the production update provided.
SAIL Railway Rail Dispatches Increase 7%
SAIL recorded stronger dispatches in selected railway-related steel products during the first half of FY2026-27.
Dispatches of long rails to Indian Railways increased 7% year-on-year, while dispatches of wheels and axles rose 3%.
Key railway product dispatch trends:
- Long rails to Indian Railways: Dispatches increased 7%.
- Wheels and axles: Dispatches increased 3%.
The growth in long rail dispatches highlights the continued importance of railway infrastructure requirements for SAIL’s specialised steel products.
However, the company did not disclose the absolute dispatch volumes for these categories in the information provided. Their contribution to total sales and revenue therefore cannot be quantified from the available figures.
India’s Steel Demand Outlook Supports Growth Opportunities
SAIL’s production performance comes against a positive demand outlook for the domestic steel industry.
The World Steel Association’s April forecast projected Indian steel demand to grow 7.4% in calendar year 2026, supported by construction, infrastructure development and automobile demand.
Although this calendar-year demand forecast is not directly comparable with SAIL’s April–September production figures, it highlights the potential growth opportunities available to domestic steel producers.
For SAIL, the key challenge will be to translate the anticipated demand growth into higher production volumes, stronger product realisations and improved operating performance.
The company’s ability to align production with market demand and maintain an appropriate product mix will remain important in a competitive steel market.
SAIL’s Production Mix and Volume Growth Remain Key Focus Areas
SAIL’s first-half performance presents a mixed picture. Crude and finished steel production increased by just 1%, while hot metal production recorded slightly stronger growth of 2%.
At the same time, the share of finished steel in saleable output improved, and dispatches of long rails and wheels and axles recorded growth.
Key takeaways from SAIL’s H1 FY2026-27 performance:
- Crude steel production reached 9.6 MT.
- Finished steel output increased to 8.39 MT.
- Hot metal production rose to 10.2 MT.
- Finished steel’s share of saleable output improved to 89.2%.
- Long rail dispatches to Indian Railways grew 7%.
- Wheels and axles dispatches increased 3%.
The next important indicator will be whether SAIL can accelerate volume growth while sustaining the improvement in its production mix. Profitability will also depend on steel prices, product demand, operating costs and the company’s ability to convert production into sales.
About Steel Authority of India Limited (SAIL)
Steel Authority of India Limited (SAIL) is a Maharatna Central Public Sector Enterprise under the Ministry of Steel, Government of India. It is one of India’s largest public-sector steel producers, with installed steelmaking capacity exceeding 20 million tonnes annually. The company operates integrated steel plants and produces a wide range of steel products for infrastructure, construction, railways, engineering and other industrial sectors. SAIL plays an important role in supporting India’s domestic steel requirements and industrial development.
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