AMID PRICE HIKE AND CHEAPER RAW MATERIALS, STEEL COMPANIES TO SEE PROFIT GROWTH THIS QUARTER

Indian steelmakers are poised for a profit increase in Q1FY26 driven by increase in domestic steel prices and fall in coking coal costs, inspite of sluggish sales. The Earnings Before Interest, Taxes, Depriciation, and Amortisation (EBIDTA) is expected to rise by 2-15% quarter-on-quarter (QoQ) despite a 10-12% decline in sales volume. Domestic prices of steel increased by 5-6% during the quarter, whereas prices of coking coal, a major raw material in steel production, fell by 2%. Iron Ore, another major raw material, fell by 10% in the international markets, thereby increasing the import volumes. India primarily imports iron ore from Australia and Brazil, although imports from Oman have surged this year. Major companies that will benefit in this quarter are