New Delhi — Steel Authority of India Limited (SAIL), one of India’s largest state-owned steel producers, reported a significant rise in profitability for the quarter ended June 30, 2025 (Q1 FY26), backed by higher production, strong domestic demand, and lower input costs.
The company posted a standalone profit after tax of ₹685.5 crore, compared to just ₹10.7 crore in the same period last year — a remarkable increase driven by operational efficiencies and cost control. On a consolidated basis, net profit stood at ₹744.6 crore, marking an impressive 810% year-on-year (YoY) jump from ₹81.8 crore in Q1 FY25.
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Financial & Operational Highlights
- Revenue from operations rose to ₹25,921 crore, reflecting an 8% YoY growth.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) improved to ₹2,925 crore, up around 21% from the previous year.
- Crude steel production increased to 4.85 million tonnes in Q1 FY26 from 4.68 million tonnes in Q1 FY25.
- Saleable steel sales volume reached 4.55 million tonnes, up from 4.01 million tonnes YoY.
- Profit before exceptional items and tax grew by 273% compared to the same quarter last year.
Despite the strong YoY performance, profit was down about 40% from Q4 FY25, where SAIL had reported a net profit of ₹1,251 crore. This decline is attributed to seasonal factors and a high base in the previous quarter.
Key Growth Drivers
- Favorable Base Effect: The sharp rise in YoY profit was aided by a low base in Q1 FY25, which included a one-time exceptional charge.
- Lower Raw Material Costs: Reduced prices for iron ore and coking coal improved margins substantially.
- Strong Domestic Demand: Continued investment in infrastructure and construction bolstered steel consumption.
- Government Support: A temporary 12% safeguard duty on select steel imports, introduced in April 2025, helped shield Indian producers from cheaper overseas competition.
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Management Commentary
SAIL’s Chairman and Managing Director, Amarendu Prakash, stated that the Q1 performance reflected the company’s strong focus on operational efficiency, cost optimization, and meeting domestic steel demand. He reaffirmed SAIL’s commitment to enhancing stakeholder value and building on the momentum in upcoming quarters.
Challenges Ahead
While the company’s performance was strong, the sequential dip in profit underscores the cyclical nature of the steel industry. Going forward, the sustainability of growth will depend on stable input prices, continued policy support, and demand from infrastructure and allied sectors.
About (SAIL)
Steel Authority of India Limited (SAIL) is a Maharatna Public Sector Undertaking under the Ministry of Steel, Government of India. Established in 1973, SAIL is India’s largest steel-producing company, owning and operating five integrated steel plants and three special steel plants across the country.
