Steel Authority of India Ltd (SAIL) has reported a significant financial uplift for the second quarter of fiscal year 2027, with standalone net profit surging by 315% year-on-year. The state-owned steel giant announced a profit after tax (PAT) of Rs 1,774 crore for the quarter ending September 2026, a substantial rise from Rs 427 crore in the same period last year.
Strong Revenue Growth and Debt Reduction
The impressive profit growth was supported by a 20% increase in revenue from operations, which climbed to Rs 31,998 crore in Q2 FY27 from Rs 26,704 crore a year earlier. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a healthy rise, reaching Rs 4,561 crore compared to Rs 2,829 crore in the corresponding quarter.
SAIL's operational performance was bolstered by a 5.1% increase in sales volume, reaching 5.16 million tonnes, and crude steel production rising to 4.85 million tonnes. These improvements, coupled with strategic cost optimization measures, were key drivers for the enhanced profitability.
Management Highlights Resilience
A K Panda, Chairman and Managing Director of SAIL, commented on the results, stating, "SAIL's performance in Q2 and H1 FY 2026-27 reflects our operational resilience, financial prudence and strategic agility amid global market volatility." He further emphasized the company's focus on improving raw material usage, reducing steel inventory, and rationalising costs, alongside efforts to increase the share of high-end products in its portfolio.
First Half Performance and Balance Sheet Strengthening
For the first half of FY27, SAIL continued its strong trajectory. Standalone revenue from operations for H1 FY27 increased to Rs 58,243 crore from Rs 52,625 crore in H1 FY26. EBITDA for the six-month period rose to Rs 8,917 crore from Rs 5,754 crore, and PAT reached Rs 3,410 crore, up from Rs 1,112 crore.
In a positive development for its financial health, SAIL's outstanding debt decreased to Rs 20,583 crore as of September 2026. This reduction underscores the company's commitment to strengthening its balance sheet through focused borrowing reduction efforts.