S A I L

S A I L delivered a strong performance in Q3 FY26, with 9-monthly revenue increasing by 9% to ₹79,997 crores and PAT growing by 60% YoY. This was driven by a significant 16.3% growth in sales volume for the nine-month period, leading to substantial inventory reduction and lower borrowings. The company highlighted operational efficiency, cost optimization, and good treasury management as key contributors to its improved financial prudence.

Globally, growth is projected to remain resilient at 3.3% in 2026 and 3.2% in 2027, with inflation stabilizing. India's GDP growth projections have been revised upwards to 6.4%-7.3%. The Indian steel industry continues to experience robust demand, with consumption growing by almost 7% and crude steel production by 9.5% during the nine-month period. India has become a net exporter, with exports growing by 33% to 4.8 million tonnes, while imports reduced by 37% to 4.65 million tonnes.

Crude steel production grew by 2% to 14.35 million tonnes in 9-monthly FY26, and saleable steel grew by 4-5%. The company is actively outreaching to retail and other consumers, resulting in the 16.3% sales volume growth. Management aims for a hot metal volume of 20.5-21 million tonnes for FY26, increasing to 22.5 million tonnes in FY27. The sales volume target for FY26 is around 19.5 million tonnes, which is higher than production, indicating continued inventory liquidation.

The company saw a positive impact of approximately ₹100 crores from coking coal inventory valuation in Q3, with an expected positive impact of ₹200-400 crores in Q4. However, coking coal prices are on an upward trend, with consumption rates expected to increase by ₹1,200/ton in February and another ₹1,000/ton in March. The average blended coking coal cost for Q3 was ₹18,351/ton. The company is also focusing on reducing power costs by sourcing from RE power sources, contributing to structural savings.

S A I L has revised its FY26 CAPEX guidance to ₹10,000 crores (from an initial ₹7,500 crores) and plans ₹15,000 crores for FY27. A major focus is the IISCO expansion, estimated at ₹36,000 crores, with ₹7,000-8,000 crores allocated for 2026-2027, targeting completion by FY30. This expansion is expected to boost EBITDA per ton to over ₹10,000. Debottlenecking projects at DSP and RSP are underway, with DSP's 1-million-ton TMT bar mill expected in 18-24 months, aiming to reduce semis percentage to near zero.

The company successfully reduced its debt by ₹5,000 crores in the first nine months of FY26, with an additional ₹2,000 crores reduction in January alone. This significant deleveraging has led to a ₹500 crore reduction in interest costs during the nine-month period, with an expectation of another ₹500 crores reduction in Q4, totaling ₹1,000 crores for FY26. This focus on financial prudence and inventory liquidation is aimed at accommodating future CAPEX requirements.