Equity Snap: Steel Authority of India (SAIL IN): Broadly in-line quarter; SAIL forecasts capex to increase sharply

Research evidence excerpt

Equity Snap: Steel Authority of India (SAIL IN): Broadly in-line quarter; SAIL forecasts capex to increase sharply

28 July 2026

Equity Snap: Steel Authority of Equities Metals & Mining

India (SAIL IN)

Broadly in-line quarter; SAIL forecasts capex to

increase sharply India

◆ SAIL’s 1QFY27 was broadly in line with consensus. Pinakin Parekh*

Company has guided to lower ASP/t in 2Q on seasonal SeniorHSBC SecuritiesAnalyst, Indiaand CapitalMetalsMarketsand Cement(India) Private

decline in long steel prices. SAIL expects capex to increase Limited pinakin.parekh@hsbc.co.in

sharply over FY27-29 +91 22 40891549

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

Steel Authority of India (SAIL IN, INR162.62, Hold, TP INR180.00) not registered/ qualified pursuant to FINRA regulations

(Priced as of 27 Jul 2026)

Broadly in-line 1Q as higher prices offset higher costs: SAIL reported in line results

with EBITDA of INR41.5bn, +50% y/y and -6% q/q, v/s consensus estimates of INR39bn,

mainly led by higher ASP/t which offset higher costs. Reported PAT stood at INR16.4bn

vs consensus at INR16.1bn. Debt was marginally higher q/q to INR217bn. SAIL

highlighted planned capital repairs at some of its key plants which impacted production in

1QFY27. Steel production was -2% y/y steel sales volumes were -9% y/y. There were no

volumes from NMDC Steel in 1QFY27. Implied ASP/t was higher by 9% q/q, which

drove a 20% q/q increase in EBITDA/t to INR9,982t. Operating costs were +7% q/q.

We would highlight that SAIL’s 1QFY27 EBITDA/t was the highest since 2QFY22.

Guidance/Key highlights from analyst call: Per SAIL, NSR in 1Q stood at INR57,100

vs. INR52,000/t in 4QFY26. July NSR has not seen any change in flat product prices, but

long product prices have seen a decline of INR3000/t.