Steel Authority of India Limited Earnings Summary — Q1 FY2027
SAIL Reports Q1 FY27 Net Profit of ₹1,636 Crore Amid Strengthening Operating Margins
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 14.8% sequentially in Q1 FY2027.
- Revenue of ₹26,246 Cr is 1.2% higher year-on-year.
- Revenue has compounded at -2.8% annualised over the last 10 quarters.
- Net profit of ₹1,644 Cr is 120.8% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 18.3% annualised across the period.
- Operating margin stands at 15.8% in Q1 FY2027.
- Operating margin expanded by 514 bps year-on-year.
- Over the last two years operating margin has expanded by 657 bps.
- PBT margin is 8.3%.
- Expense growth of -4.6% remained below revenue growth of 1.2%.
- Operating profit of ₹4,153 Cr is 50.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 69/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 26,246 | 30,813 | 27,371 | 26,704 | 25,922 | 29,316 | 24,490 | 24,675 | 23,998 | 27,959 |
| Expenses | Stable | 22,093 | 26,405 | 25,077 | 24,176 | 23,153 | 25,832 | 22,460 | 21,762 | 21,778 | 24,476 |
| Operating Profit | Accelerating | 4,153 | 4,409 | 2,294 | 2,528 | 2,769 | 3,484 | 2,030 | 2,913 | 2,220 | 3,483 |
| Operating Margin | Accelerating | 15.8% | 14.3% | 8.4% | 9.5% | 10.7% | 11.9% | 8.3% | 11.8% | 9.3% | 12.5% |
| Other Income | Volatile | 87 | 202 | 248 | -34 | 235 | 362 | 393 | 322 | -28 | -43 |
| Interest | Stable | 493 | 532 | 547 | 484 | 595 | 664 | 680 | 758 | 691 | 642 |
| Depreciation | Stable | 1,560 | 1,577 | 1,516 | 1,453 | 1,441 | 1,524 | 1,421 | 1,304 | 1,402 | 1,356 |
| Profit Before Tax | Volatile | 2,187 | 2,502 | 480 | 556 | 968 | 1,657 | 323 | 1,173 | 98 | 1,441 |
| Tax | Volatile | 543 | 666 | 106 | 137 | 223 | 406 | 181 | 276 | 16 | 316 |
| Net Profit | Improving | 1,644 | 1,835 | 374 | 419 | 745 | 1,251 | 142 | 897 | 82 | 1,126 |
| Net Margin | Improving | 6.3% | 6.0% | 1.4% | 1.6% | 2.9% | 4.3% | 0.6% | 3.6% | 0.3% | 4.0% |
Key Takeaways
- Net Profit surged 138.7% Year-on-Year to ₹1,636 crore, driven by inventory liquidation and operational efficiencies despite sequential slight volume moderation.
- Operating margins improved significantly to 16.60%, up from 11.29% in the prior year quarter, reflecting better cost optimization.
- The company recognized an exceptional charge of ₹144.01 crore during the quarter specifically related to a Voluntary Retirement Scheme (VRS).
- Debt-to-Equity ratio improved to 0.54 from 0.64 a year ago, highlighting management's focus on deleveraging and interest cost reduction.
- Sales to Government agencies at provisional prices remain a major revenue driver, totaling ₹2,138.77 crore for the quarter.
- Inventory of sub-grade iron ore fines and slags continue to be carried at an estimated value of ₹3,675.37 crore as the company formulates disposal/consumption plans.
- Board composition remains non-compliant with SEBI LODR requirements regarding the requisite number of Independent, Non-Executive, and Woman Directors.
Management Guidance
Management targets a sales volume of 22 million tons for FY27, representing a 10% increase year-on-year. Capital expenditure is guided at ₹15,000 crore for FY27, escalating to over ₹20,000 crore in FY28 as major expansion projects at IISCO, Bokaro, and Bhilai gain momentum.
Sentiment Shift
Improving
The transition to a 'clean' balance sheet without auditor qualifications and the revocation of director suspensions marks a significant improvement in corporate governance and financial transparency.
Outlook
The company expects domestic demand to remain robust with margins projected to improve as steel prices stabilize. A focus on workforce reduction (targeting 3,000-3,500 retirements annually) and raw material security via Middle Eastern routes will be key themes for the fiscal year.
From the Annual Report (Key Quotes)
“The balance sheet of '25-'26 is totally clean from the qualifications. There are no qualifications in the balance sheet after a pretty long time.”
“Company has posted highest ever sales volume at 19.9 million tons... which has resulted in huge inventory reduction and reduction in borrowings.”
“We believe the steel prices will remain at this level and the margins will remain good during '26, '27.”
Official Quarterly Documents
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This summary is AI-generated from Steel Authority of India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.