SAIL Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹26,246 Cr
verified against source
Revenue YoY
1%
reported change
EBITDA
₹4,356 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
SAIL delivered a strong Q1 FY27 with PAT of ₹1,636 crore (+150% YoY) and EBITDA of ₹4,356 crore (+50% YoY), with EBITDA margins at 16.7%—one of the best since FY22. Despite crude steel production declining to 4.8 million tons due to advanced capital repairs at three steel plants, the company achieved higher NSR of ₹57,100/ton and maintained discipline on borrowings (₹21,729 crore). Key positives include iron ore captive mines contributing ₹574 crore revenue (+₹417 crore YoY), cost efficiency targets of ₹2,000-3,000/ton savings, and robust domestic steel consumption (+8% YoY). Management guided FY27 capex of ₹15,000 crore with plans to ramp to ₹20,000+ crore next year. Risks include Q2 seasonal weakness, coal cost volatility (index at 220 vs peak of 235), and rising imports (net 4-5 million tons) potentially pressuring realizations.
Colored figures show movement against the previous available record.
Guidance to track
- 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.
- 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.
- 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.
- 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.
Risks flagged
- Q2 traditionally faces monsoon-related demand slowdown, which could pressure NSR. Management expects NSR to be ₹1,000-2,000 lower per ton in Q2 versus Q1 levels.
- Imported coal costs remain elevated at ₹21,300/ton in Q1 (vs ₹18,100 in Q4), though softening. Further volatility due to geopolitical factors could impact margins.
- Finished goods inventory increased by 2 million tons during Q1. Management plans to liquidate through Q3-Q4, but if demand weakens, this could constrain cash flows and require additional working capital.
- Employee wage revision (7th Pay Commission) due from January 2027. Management deflected questions on provisioning, stating they will evaluate in Q4—potentially a significant cash outflow not yet reflected in guidance.
Key quotes
- EBITDA margin at 16.7% is one of the best since 21-22 when the steel market that time was at its peak and coal price was at its bottom.
- We are maintaining full year volume and we'll be having a growth of over last year by the year end.
- The gap [between primary and secondary TMT] has narrowed down to around 5,000 rupees right now which is a healthy gap.
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