Steel Authority of India (SAIL IN) – Q2FY27 Result Update – Steel pricing to aid H2; execution under watch – ACCUMULATE
Published on 29 Oct 2026
SAIL reported largely in-line performance, despite higher-than-expected sales volumes (+10% YoY to 5.16mt) on inventory liquidation driving 67% YoY EBITDA growth to INR42.2bn (PLe INR42.3bn). Higher coking coal costs and weaker long product steel prices, resulted in EBITDA/t of INR8,178 which also includes profit from sale of excess iron ore worth INR2.65bn. Monetization of captive iron ore fines is emerging as an incremental earnings driver, with ~2.5mt sold in H1FY27 generating INR3.88bn in profit and FY27E volumes targeted at 7-8mt. Looking ahead, a sharp recovery in long steel prices over the last two months, coupled with expectations of strong demand, would support H2 margins. Maintain ‘Accumulate’ with revised TP of INR180 (INR193 earlier) giving same 5.5x Sep’28E EV/EBITDA.
