FY27 Capex Target
Full year capex guidance maintained at ₹15,000 crore for FY27, expected to increase to ₹20,000+ crore in FY28 and ₹25,000+ crore in FY29, driven by expansion projects at IISCO and other plants.
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capex
Full Year Volume Guidance
Management reiterated full year volume guidance and expects production volumes to exceed Q2-Q4 levels compared to last year, resulting in overall growth by year end.
Coal Cost Reduction Q2
Imported coal costs expected to reduce by ₹1,000-2,000 per ton progressively from August, as the coal price index has already softened from peak of 235 to current level of 220.
Cost Reduction Program
Targeting ₹2,000-3,000 per ton cost reduction through operational efficiency improvements, with potential net savings of ₹2,000 per ton by FY28-29 after factoring fixed cost increases from new facilities.
FY26 Sales Volume Target
Full year sales volume guidance of 18.5 million tonnes remains intact, with H2 targeting inventory reduction by keeping sales above production.
FY27 Volume Growth Target
FY27 volumes expected to grow 5-7% over FY26 driven by de-bottlenecking projects at various steel plants including Bhilai and Rourkela.
Q4 Margin Recovery
Q4 EBITDA margins expected to improve to 14-15% range on seasonal demand pickup, improved production from resolved Bokaro issues, and better cost control.
FY26 Capex Target
H1 capex achieved at ₹3,337 crore with full year target in excess of ₹7,500 crore. FY27 capex expected to jump above ₹10,000 crore for ISCO expansion.
FY27 hot metal production target: 22.5M tons
Management projects 22.5M tons hot metal and ~21M tons crude steel in FY27, up from FY26's expected 20.5-21M tons. FY28 is guided at 23M tons hot metal and 21.5M tons sales.
FY26 capex: ₹7,500-10,000 crore; FY27: ₹15,000 crore
FY26 capex revised upward from initial ₹7,500 crore guidance to ₹7,500-10,000 crore range. FY27 capex will significantly increase to ₹15,000 crore, driven by ISP expansion payments.
Q4 volumes expected higher than Q3
Management expects Q4 FY26 sales volumes to exceed Q3's 5.15M tons, driven by all five ISPs operating at full capacity and continued inventory reduction.
EBITDA/ton to exceed ₹10,000 post-ISP expansion
Current EBITDA/ton is ~₹6,000-7,000. Management expects this to improve beyond ₹10,000/ton once the ISP modernization project (₹36,000 crore, completion FY30) comes onstream.
FY27 Sales Volume Target: 22 Million Tons
Management targets 22 million tons of sales volume for FY27, implying ~15% growth over FY26's 19.9 million tons. This includes ~6-7 million tons from RNL. Excluding RNL and NMDC/NSL, pure SAIL volumes targeted to grow from ~19 million tons to 22 million tons.
FY27 Capex: ₹15,000 Crore
FY26 capex was ~₹9,100 crore against a target of ₹10,000 crore. FY27 capex guidance is ₹15,000 crore, stepping up to ₹18,000-19,000 crore in FY28 and ₹20,000-25,000 crore thereafter as three expansion projects (Iisco, Bokaro, Bhilai) progress.
FY27 Production Target: 22.5 Million Tons
Targeting 22.5 million tons production in FY27 through debottlenecking and operational efficiencies, exceeding the installed capacity of 21 million tons. New capacities from Iisco (4.5MT), Bhilai (3.5MT), and Bokaro (3MT) will come online from FY30-31.
Employee Cost Outlook: Continued Reduction
Employee cost at ₹11,392 crore in FY26 is expected to decline further in FY27 despite BRS impact, driven by ~3,000 headcount reduction annually. Government pay revision (applicable from January 2027) will be provisioned in Q4 FY27 and is incremental to current guidance.