Informist, Friday, Jul. 25, 2025

By Ashutosh Pati

MUMBAI – State-owned Steel Authority of India Ltd. reported a strong performance in the June quarter with both bottom line and top line rising from the year-ago quarter. However, the company's net profit was lower than the Street's estimate and also fell compared to the trailing quarter. Lower coal prices, a key raw material, and higher sales volumes guided the company's performance during the quarter.

The steelmaker's net profit rose more than sixty-fold on year to INR 6.85 billion, mainly because of a lower base in the year-ago quarter when the company had incurred a one-time loss of INR 3.12 billion. Analysts had expected the company to report a profit of INR 11.34 billion. SAIL's revenue from operations for the reporting quarter rose 8% on year to INR 259.21 billion, slightly better than analysts' expectations of INR 258.96 billion. Sequentially, however, the company's net profit fell nearly 42% and its revenue declined around 12%.

The company's sales for the June quarter rose over 13% on year to 4.55 million tonnes. The cost of materials consumed by the steel major, which includes the cost of coal, fell nearly 22% to INR 107.43 billion.

The company's crude steel production rose to 4.85 million tonnes in the quarter ended June from 4.68 million tonnes reported in the corresponding quarter a year ago. However, production of crude steel fell from 5.09 million tonnes in the trailing quarter. SAIL's earnings before interest, tax, depreciation, and amortisation, rose around 21% on year to INR 29.25 billion.

The company's total expenditure in the reporting quarter rose 5.5% on year to INR 251.92 billion. Finance costs fell 14% on year to INR 5.95 billion in the June quarter. "SAIL's Q1 FY26 performance shows improved operational efficiency, better cash flow and strong growth in sales volume in domestic market, supported by government safeguard duties," Amarendu Prakash, chairman and managing director of the company, said in a press release.

On Friday, shares of Steel Authority of India closed 4% lower at INR 130.67 on the National Stock Exchange. The company released its results after market hours. End

Edited by Tanima Banerjee

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