SAIL Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹30,813 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
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Actual signal trajectory
Where this quarter sits.
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What the record says.
SAIL delivered a strong Q4 FY26 with 5% revenue growth to ₹30,541 crore and 48% PAT growth YoY. Full-year FY26 saw sales volume reach 19.9 million tons (near 20M milestone) with 11% volume growth and sales turnover of ~₹1.1 lakh crore (8% growth). The company achieved 51% PAT growth for the full year without any real price revision benefit, highlighting operational efficiency gains. Debt reduced by ₹8,150 crore to improve the net D/E ratio to 0.37. Management targets 22 million tons sales volume for FY27 with ₹15,000 crore capex (rising to ₹20,000+ crore thereafter) for the three expansion projects at Iisco (₹36,000 crore), Bhilai (₹30,000 crore), and Bokaro (₹18,000 crore). Coking coal cost inflation of ~₹2,000/ton in Q1FY27 vs Q4 poses a headwind, but higher steel prices (April NSR at ₹57,000/ton vs Q4's ₹52,000/ton) should offset this. Risk includes potential demand slowdown in Q1-Q2 and the unresolved government pay revision provisioning expected in Q4 FY27.
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Guidance to track
- 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.
- 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.
- 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 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.
Risks flagged
- Coking coal prices have risen from Q4 average of ₹18,200/ton to April ₹21,000/ton and May ₹21,800/ton. Management estimates ~₹2,000/ton cost increase translating to ~₹1,400-1,500/ton impact on hot metal. Combined with 30-day inventory buffer, this will partially moderate the price benefit.
- Management acknowledged that Q1 and Q2 typically see muted demand due to post-Q4 restocking. With geopolitical uncertainties (Middle East) and potential inflation concerns, there could be buyer resistance to price hikes. Steel prices at current elevated levels may face correction pressure.
- Management confirmed that pay revision guidelines from government are pending (applicable from January 2027). Historical revisions have been ~15%. This cost will be provisioned in Q4 FY27 and is over and above current employee cost guidance. The quantum remains uncertain pending government committee formation.
- Salem Steel Plant continues to bleed with CRM mill yield at only 83-84% vs target 90%. Management outlined a turnaround plan (PNG replacement, cheaper power, importing slabs) but no expansion planned. This remains a drag on consolidated profitability despite management's turnaround efforts.
Key quotes
- In FY26 there was no real price revision area. Still we have exhibited more than 50% increase in PAT as compared to the previous year. So that shows the potential SAIL has to take it forward.
- There is no theoretical capacity for a blast furnace or steel melter. It is only the enablers and the raw metal and the practices which we improve by which we can easily go beyond 100%.
- We're trying to improve our profitability to a level in which the cash flows will be better. The profitability plus depreciation will give us a cash flow which probably will be able to take care of this year's capex to a large extent, but going forward the incremental will come from long-term loans borrowings.
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