After Two Lacklustre Quarters, Steel Authority of India Ltd (SAIL) reported a rebound in performance in the March Quarter (Q4FY25), Driven by Lower Raw Material Costs and Improved Sals Volumes -Even as Selling Price Remained Under Pressure.
Sail’s Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Stood at 3,500 Crore in Q4Fy25, Slightly Higher on a year-on-Year Basis. This marks a turning after a 5% decline in Q3 and a steep 40% drop in Q2.
The Blended Realization for the Quarter Fell 10% from a year earlier to 55,000 per tonne. However, the company managed to offset this decline without 1,500 per tonne.
The Company Sold 0.36 Million Tonnes (MT) of Steel on Behalf of NMDC Steel Under An Agreement that Provides for a Fixed Trading Margin.
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Improved margins
The company’s ebitda per tonne (adjusted for nmdc volumes) improved to 7,000 in Q4, up from 4,550 in Q3Fy25, Thought Lower Than 7,620 reported in Q4Fy24.
Domestic Steel Prisis Have Been Under Pressure Due to a Rise in Imports, Particularly Flat Products, which make up 95% of the important steel. However, Prisis Have Started Recovering – Rising By About 3,000 per tonne -after the impression of a safeguard duty on important in April. Price are expected to improve further after the monsoon, according to the company.
The global outlook also offers are released, with the world steel association projecting a rebound in consumption in 2025 after three years of decline.
For FY25, Sail’s Revenue Dropped 3% to 1.02 trillion due to lower realizations, even thought sales volumes rose. Ebitda for the full year declined 4% to 10,630 Crore.
The company has set a sells volume target of 19.2 mt for26, up from 17.9 mt in fy25.
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Operational Efficiency Helped Sail Save 650 Crore in Fy25 Through Measures Like Reduced Fuel Consumption and Higher Throughput at Efficient Plants. Employee Cost also found during the year, despite a one-of-off adjustment in Q4, with a reduction in manpower and management expects Savings of Savings of 400-500 Crore in FY26.
The company’s plant-with earnings reflect the disparity in Steel Product Categories. While Ebit (Earnings Before Interest and Taxes) At Bokaro and Rourkela Plants-Focused on Flat Products-Dropped 66%, Ebit at Long-Product-Focused IISCO and BHELAII PLANTS ROSE 25%.
Capacity expansion plans
Sail aims to increase its total steelmaking capacity to 35 million tonnes per annum (MTPA) by FY31, UP from the current 20 MTPA. The first phase of expansion, involving debottlenecking to add 2–3 mtpa, is expected by fY28.
Capital Expenditure (Capex) is Budged at 7,500 Crore for FY26, up from 6,400 Crore in FY25. Peak Annual Capex Cold Reach 10,000 Crore in FY28-29, which may put Temporary pressure on the balance sheet-Simillar to the strain seen during the last expansion cycle between 2010 and 2020.
Sail shares have gained about 15% so far in 2025, buoyed by signs of a steel market recovery. Analysts say that trends in Steel Pricing and Volumes will be key to determining future performance. Nuvama Institutional Equites Expects The Company to Deliver 21% Cagr Ebitda Growth Over FY25-27, Supported by Stronger Pries and Lower Coking Coal costs.
Also read: Steel Pries Climb as ‘Safeguard’ Duty Looms, User Industries Warn of Cost Inflation
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