SAIL Q1 net profit falls 10 pc sequentially to Rs 1,644 crore; revenue declines nearly 15 pc
New Delhi, July 24
Steel Authority of India Limited on Friday reported a 10.4 per cent sequential decline in its consolidated net profit for the April-June quarter, as lower revenue and other income weighed on the state-run steelmaker's earnings.
The company posted a consolidated net profit of Rs 1,644 crore for the quarter ended June, compared with Rs 1,835 crore in the January-March quarter (Q4 FY26), according to its stock exchange filing.
Revenue from operations declined 14.8 per cent quarter-on-quarter to Rs 26,246 crore from Rs 30,813 crore.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 5.8 per cent sequentially to Rs 4,153 crore from Rs 4,408 crore.
However, the company's operating margin improved by 150 basis points to 15.8 per cent from 14.3 per cent in the previous quarter, as per the filing.
Other income also declined sharply to Rs 206 crore during the quarter from Rs 352 crore in the preceding quarter.
The company said the April-June quarter included a one-time cost of Rs 144 crore, which impacted its financial performance.
Despite the weaker quarterly earnings, SAIL shares ended the day 0.34 per cent higher at Rs 161.45 apiece on the National Stock Exchange (NSE), outperforming the benchmark Nifty index, which closed 0.43 per cent lower.
The stock has delivered positive returns to investors over a longer period, rising 9.84 per cent on a year-to-date basis and 18.57 per cent over the past 12 months.
Commenting on the results of the first quarter of the current financial year, Chairman & Managing Director, SAIL, Dr. Ashok Kumar Panda said, "Amid global uncertainties, the domestic steel industry demonstrated resilience backed by sustained demand in domestic steel consumption."
"SAIL, through enhanced operational efficiencies, prudent cost management and focused marketing initiatives, has delivered a significantly profitable first quarter in FY27. The company remains confident of leveraging robust manufacturing capabilities and continues to strengthen performance while capitalizing on the sustained domestic steel demand," Panda stated.
— IANS
Reader Comments
1,644 crore profit in the first quarter is actually quite good considering global uncertainties. But the 15% revenue dip is a bit worrying. Kaun si company aisi hai jo revenue ghatne ke baad bhi stock upar le jaye? Only SAIL! 😅
A 150 bps improvement in operating margin is noteworthy. Shows management's focus on efficiency. But I hope they can control the one-time costs that keep appearing. The 12-month return of 18.57% is decent for a PSU steel company.
Honestly, I'm not impressed. Revenue down 15% is a big drop. The CMD's statement about "resilience" sounds like corporate jargon. Yes, profit is there but at what cost? Margins improved because they cut costs, but top line is suffering. Need to see sustainable demand growth.
Good thing I bought SAIL at Rs 135 last year! 18% return in 12 months is better than most fixed deposits. Arre bhai, steel cycle toh aata jaata rehta hai. Long term ke liye hold karo, short term volatility se ghabrana nahi chahiye. 🔥
Interesting that market took this positively despite lower profits. The improvement in operating margin is the key takeaway. But I want to see SAIL reduce its debt and improve capacity utilization. Government's infrastructure push should help in coming quarters.
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