SAIL
Mid CapSteel Authority of India Limited
Metals
Steel Authority of India Limited (SAIL) is a major Indian public sector steel producer, operating integrated steel plants. It produces a wide range of steel products and has captive mines for iron ore, limestone, and dolomite.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 80/100Rev +5% YoY · PAT +47% YoY · margin expansion · +13% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹30,813 Cr | +5.1% | +12.6% |
| EBITDA | ₹4,409 Cr | +26.5% | +92.2% |
| Operating margin | 14.0% | +200 bps | +600 bps |
| PAT | ₹1,835 Cr | +46.7% | +390.6% |
| PAT margin | 6.0% | +169 bps | +459 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
SAIL reported strong FY26 performance with PAT up 50.5% YoY and EBITDA up 11.7% YoY, driven by higher sales volumes and improved realizations. Q4 FY26 saw significant sequential profitability improvement, with EBITDA up 81.1% QoQ, despite flat sales volumes YoY for the quarter.
SAIL demonstrated robust financial and operational improvements in FY26, marked by significant PAT growth and enhanced EBITDA margins. Deleveraging continued, and key techno-economic parameters improved. The strong sequential Q4 performance, driven by sales price and raw material usage, indicates positive momentum, though flat quarterly sales volume needs monitoring.
Product Mix (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Domestic Steel Consumption
India's finished steel consumption grew ~8% over previous year in FY26.
Infrastructure & Capital Goods Demand
IIP growth driven majorly by Infrastructure Goods and Capital Goods in FY25-26.
Operational Efficiency
Improved techno-economic parameters like Coke Rate, BF Productivity, and Specific Energy Consumption in FY26.
Deleveraging
Borrowings (Non Ind AS) decreased from Rs. 29811 crore (Mar'25) to Rs. 21663 crore (Mar'26).
Strong Indian Economic Growth
India's First Advance Estimates for FY26 at 7.4%, likely to remain amongst the fastest growing major economies.
Domestic Steel Demand
Crude steel production in India grew ~11% over previous year whereas consumption grew ~8% during FY’26.
Improved Sales Realizations
Sales Price/NSR contributed +Rs. 2213 crore to EBITDA movement Q4 FY26 vs Q3 FY26.
Global Economic Slowdown
IMF decreased 2026 growth projections over Jan’26 due to prevailing scenario in the middle east.
Global Steel Production Decline
World crude steel production falling by 2.3% (Jan-Mar CY’26 over CPLY) with China registering degrowth of 4.6%.
Input Price Volatility
Input Price/Cost contributed -Rs. 4245 crore to EBITDA movement FY26 vs FY25.
Global Economic Volatility
Economic conditions affecting demand / supply and prices in the domestic and global markets.
Commodity Price Fluctuations
Prices in the domestic and global markets in which the Company operates.
Regulatory Changes
Changes in Government regulations, tax laws and other statutes, etc.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Annual (YoY) comparison provides a full-year view of growth and efficiency trends, crucial for a cyclical industry like steel. Quarterly (QoQ) comparison assesses sequential momentum, pricing power, and immediate impact of input costs, critical for spreads.
Crude Steel Production
FY26: 19.434 MT (+1.2% YoY). Q4 FY26: 5.1 MT (flat YoY, +8.5% QoQ vs Q3 FY26).
Total Sales Volume
FY26: 19.932 MT (+11.2% YoY). Q4 FY26: 5.3 MT (flat YoY, +3.8% QoQ vs Q3 FY26).
EBITDA Margin
FY26: 12.0% (vs 11.6% FY25). Q4 FY26: 15.6% (vs 9.7% Q3 FY26, 12.9% Q4 FY25).
EBITDA/ton
FY26: Rs. 6595 (vs Rs. 6574 FY25).
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Domestic Steel Consumption Growth | India's consumption grew ~8% in FY26. | Sustained growth in infrastructure and capital goods sectors. |
| EBITDA Margin Trend | FY26 at 12.0%, Q4 FY26 at 15.6%. | Ability to maintain or expand margins amidst input cost volatility and pricing pressures. |
| Debt-Equity Ratio | 0.37 (Mar'26). | Continued deleveraging and efficient capital allocation. |
| Operational Efficiency Metrics | Improved coke rate, BF productivity, specific energy consumption in FY26. | Further improvements in techno-economic parameters. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +22.0% / mo
Technical chart
SAILweekly · 3Y+118.4%Technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 51. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~18.0% over last month) — short-term momentum positive.
- RSI(14) at 51 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 11% off 52W high · 57% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 14.7%.
- Piotroski is strong at 8/9.
- Cash flow contributes 10/10 to the score.
Main drags
- Fair-value margin of safety is negative at -239.2%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 3/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 73rd percentile of the scored universe and 76th percentile within Metals. Main check: financial discipline is weak at 40/100.
Healthy Trust Lite: Promoter holding is 65%. Key concern: ROCE is low at 7.8%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Metals: 76th pctile, median 68 · Mid: 44th pctile, median 76
58 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 65%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 14.7%.
- ▸5 years of positive FCF.
Trust risks
- ▸ROCE is low at 7.8%.
- ▸ROE is low at 6.4%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 19.80
- P/B
- 1.26
- EV/EBITDA
- 6.00
- Market Cap
- 75911.00Cr
Profitability
- ROE
- 6.43%
- ROCE
- 7.79%
- ROA
- 2.48%
- Dividend Y
- 0.87%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- -2.00%
- Revenue 3Y
- 2.00%
- EPS 3Y
- 25.00%
Balance Sheet
- Debt/Equity
- 0.53
- Interest Coverage
- 5.56×
- Altman Z
- 2.45
- Book Value
- 146.00
Cash Flow
- FCF Yield
- 14.68%
- FCF Positive Y
- 5/5
- OCF
- 19039.00 Cr
- EPS TTM
- 8.17
Shareholding
- Promoter Hold
- 65.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 72%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Metals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.