SAIL Q1 FY27 net profit surges 138% to Rs 1,636 crore

Steel Authority of India Limited (SAIL) reported standalone net profit of Rs 1,636 crore for Q1 FY27, up over 138% year on year from Rs 685.48 crore. Sales turnover was nearly flat at Rs 26,010 crore, up about 1.1%, as the company moderated volumes for scheduled plant maintenance. Operating EBITDA rose about 49% year on year to Rs 4,356 crore, with margins expanding to 16.6% from 11.29%. Crude steel production dipped slightly to 4.757 million tonnes from 4.85 million tonnes as SAIL advanced repairs in a soft quarter. Total IndAS debt stood at Rs 31,970 crore, with a debt-to-equity ratio of 0.54 times, net worth of Rs 59,720 crore, and interest coverage of 4.8 times. In August 2026, SAIL posted its best-ever August output at 1.68 million tonnes, up 8% year on year, with sales up 13% to 1.87 million tonnes. Sales grew barely 1% while EBITDA jumped nearly 49%, meaning margin expansion came from better pricing and tighter costs, not from selling more steel. That is a healthier kind of profit growth, since it should hold up better than a volume led quarter if input costs stay benign. Running planned maintenance in a soft period also looks like a deliberate trade-off, giving up near-term tonnage for steadier output later. What I would flag is that this margin expansion leans on softer coking coal costs, an external tailwind SAIL does not control. If coal prices move up again, margins could compress just as fast. The August numbers are encouraging but came after maintenance work, so they are not yet a clean read on Q2. I am watching coking coal price trends, capacity utilisation once repairs are behind SAIL, and progress against its Rs 15,000 crore full-year capex target. This quarter supports a constructive medium-term view built on margins, not volume, over a 3 to 12 month horizon into Q2 FY27. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.