SAIL's Q2 FY27 numbers came in strong, with revenue of Rs. 31,997.51 Cr (+19.82% YoY) and PAT growth of +315.60% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 31,997.51 Cr (+19.82% YoY) |
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| PAT (Q2) | Rs. 1,773.73 Cr (+315.60% YoY) |
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| EBITDA margin | 14.25% (+366 bps YoY) |
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| EPS (Q2) | Rs. 4.29 (+316.50% YoY) |
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| Market cap | Rs. 70,672.97 Cr |
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| CMP | Rs. 171.20 |
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Quarter Snapshot
SAIL delivered 19.82% YoY revenue growth and 315.60% YoY PAT growth with EBITDA margin up 366 bps YoY to 14.25%, supported by 5% volume growth, VRS-driven cost discipline, and Rs.1,080 crore of H1 debt reduction. Results are on track against management's FY27 targets of 22 MT sales and Rs.15,000 crore capex, though margin compressed 235 bps QoQ and the H2 volume requirement (+21.01% YoY) is a stretch. Watch items include the Rs.309.03 crore rail-price downward-revision provision, Salem's continued losses, and the inventory build against the liquidation guidance.
Key Investment Insights
Key Positives
- Revenue grew 19.82% YoY and 21.92% QoQ to Rs.31,997.51 crore on 5% YoY sales volume growth (5.16 MT) and higher realizations
- PAT grew 315.60% YoY to Rs.1,773.73 crore; normalized PAT grew 165.75% YoY
- EBITDA rose 61.25% YoY to Rs.4,561.04 crore with margin up 366 bps YoY to 14.25%
- H1 operating cash flow of Rs.8,447.69 crore was 2.48x PAT; FCF of Rs.3,001.41 crore after Rs.5,446.28 crore capex
- Total borrowings fell Rs.1,080.27 crore in H1 to Rs.20,582.93 crore; debt-equity improved to 0.52 from 0.60 YoY
- Employee costs fell 2.63% YoY and other expenses grew 3.61% YoY vs 19.82% revenue growth
- Bokaro segment result grew 397.75% YoY and IISCO 133.76% YoY as prior-quarter capital-repair drag reversed; total segment results up 114.63% YoY
- Every major plant grew revenue over 18% YoY; Visvesvaraya turned profitable at Rs.9.04 crore from a Rs.9.21 crore loss
Risk Factors
- EBITDA margin compressed 235 bps QoQ to 14.25% from 16.60%; EBITDA per tonne fell to ~Rs.8,839 from ~Rs.10,470 in Q1
- Rs.309.03 crore provision recognized for downward revision of FY24-25 rail price under provisional pricing
- Salem Steel Plant remains loss-making with a −13.47% segment margin (loss of Rs.75.04 crore)
- 'Others' segment revenue fell 56.40% YoY with result swinging from +Rs.88.66 crore to −Rs.21.83 crore
- H2 sales of 12.67 MT needed to reach the 22 MT FY27 target implies +21.01% YoY growth vs H1's −1.4% — a stretch