Q2 Seasonally Weak Demand
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.
SAIL / Q1-FY27 / risks
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Steel Authority of India · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
medium
Coal Price Volatility
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.
Inventory Buildup
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.
Wage Revision Provision
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.