Steel Authority of India Limited (SAIL) has reported a mixed performance for the second quarter, highlighting the continued challenges faced by integrated steel producers amid cost pressures and subdued market conditions. The company’s revenue rose by around 3% to ₹26,704 crore, reflecting stable demand and steady sales volumes across key segments. However, profitability took a sharp hit, with net profit declining by nearly 44% to ₹419 crore.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) fell by about 8.7%, while operating margins contracted to roughly 9.5%. The decline in margins underscores the strain from rising input costs, particularly coking coal and energy, which have eroded profitability even as the topline continues to grow. This imbalance between revenue and profit points to persistent volatility in raw material markets and weaker steel realisations in recent months.
Analysts note that SAIL’s performance mirrors a broader trend across India’s steel industry, where producers are grappling with elevated costs and uneven demand recovery from infrastructure and manufacturing sectors. Despite government-led capex and steady domestic consumption, export opportunities remain constrained due to global price pressures and trade policy uncertainties.
For investors and industry observers, the results highlight the vulnerability of large public-sector steelmakers to cyclical fluctuations in cost and pricing dynamics. Going forward, sustaining profitability will depend on SAIL’s ability to optimise production efficiency, reduce costs, and strengthen its product mix towards higher-value segments.
While the revenue uptick reflects a resilient sales performance, the sharp fall in profit serves as a reminder that cost management and value addition remain crucial for navigating the evolving steel landscape.
