Steel Authority of India (SAIL), the state-owned steel producer operating captive iron-ore mines, heads into its Q2 FY 2026-2027 print with steel prices at multi-month highs but imported coking coal surging to $283/tonne in September. The print will speak to whether EBITDA margin holds near Q1's 16.7% against a guided NSR decline of Rs. 1,000-2,000/tonne, and how much of Q1's strength came from a flagged non-recurring inventory release of about Rs. 1,851 crore.
| Results date | October 27, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 26,246 crore |
| Previous quarter PAT | Rs. 1,636 crore |
| Previous quarter EBITDA margin | 16.7% |
| Market cap | Rs. 69,867.83 Cr |
| CMP | Rs. 169.15 |
The Board of Steel Authority of India Limited will meet on 27 October 2026 in New Delhi to approve unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026, under Regulation 29(1) of SEBI LODR. The trading window for designated persons has been closed from 1 October 2026 until 48 hours after the results.
SAIL's final dividend of Rs. 2.35 per share (face value Rs. 10) for FY 2025-26 was approved at the 54th AGM on 24 September 2026, with a record date of 30 September 2026 and payment within 30 days of AGM approval. This relates to the prior financial year and is separate from the upcoming Q2 results.
The quarter's central test is the margin bridge: management guided Q2 FY27 NSR down Rs. 1,000-2,000/tonne from Q1's Rs. 57,156 and coking coal consumption cost down Rs. 1,000-1,500/tonne from Rs. 21,300, but imported coal instead rose through the quarter to $283/tonne in September, up 22% from August's $232 average. The offset is price — domestic HRC rose about Rs. 6,000/t and CRC Rs. 8,500/t since August 1 to a four-year high, and rebar recovered roughly 12% from its June-July trough after a six-month low of Rs. 50,000/t in early July. Demand stayed supportive though decelerating: India finished steel consumption grew 6.5% YoY in July and 4% YoY in August, down from the 8%+ pace of Q1, while management expects production volumes to rise YoY in Q2, Q3 and Q4 after Q1's repair-driven 7-8% sales decline. Two overhangs frame the call: the rupee's September weakness past 95/USD on dollar-linked coal, and the wage revision due 1 January 2027 which is not provisioned in current guidance. Watch also for any rail-price finalization news — FY25 carried Rs. 1,800 crore of arrears and the '24-25 finalization will affect FY26-27.
Guidance scorecard to probe: Latest targets first, with Q2-specific tests.
Strategic follow-ups
Risk follow-ups
Metric watch
Narrative shifts to test
Management has said FY27 capex should be met 'to a large extent' from internal accruals — profitability plus depreciation cash flows — with incremental needs from long-term loans. Future expansion capex is targeted at a 50% debt / 50% internal accrual mix, and SAIL is also exploring FPO and QIP routes at a preliminary stage.
Director (Finance) Dr. Ashok Kumar Panda has guided the non-IndAS debt-equity ratio down from 0.46 to a band of '0.3, 0.35 or maybe 0.4' by FY25-26 year-end; the concall D/E stood at 0.36 at Q1 FY27. Borrowings were Rs. 21,729 crore as of 30 June 2026 and have since reduced further to Rs. 21,400 crore, though borrowings will rise from FY26-27 to fund the IISCO-led expansion.
Sales volume fell 7-8% CPLY to 4.2 MT primarily due to major capital repairs advanced at IISCO, Durgapur and Bokaro Steel Plants, with crude production dipping to 4.8 MT. Management expects production volumes to rise YoY in Q2, Q3 and Q4 of FY27.
Rail revenue is recognized on provisional prices set by a joint pricing committee under IndAS 115, with arrears booked to P&L on finalization — FY25 included Rs. 1,800 crores of rail price arrears. The '24-25 finalization will have its effect in FY26-27, and management expects FY27 rail prices to be better than the current provisional price of INR 74,000.