SAIL Q2 profit jumps 315% to Rs 1,774 crore; shares slip on coal costs
By Siddharth VermaBusiness Correspondent, Peepals Bharat
Representative image: 652234 / Pixabay
SAIL's Q2 FY27 standalone profit rose 315% to Rs 1,773.73 crore and revenue 20% to Rs 31,998 crore, but shares fell 4% on October 28, 2026.
What Happened
Steel Authority of India Ltd (SAIL), the country's largest state-owned steel maker, reported a standalone net profit of Rs 1,773.73 crore for the July-September quarter of 2026-27 (Q2 FY27), more than four times the Rs 426.79 crore it earned a year earlier, according to results announced on October 28, 2026. Revenue from operations rose about 20% to Rs 31,998 crore from Rs 26,704 crore. Despite the profit jump, SAIL's shares fell about 4% on the day, as investors focused on pressure on margins from costlier imported coking coal and a cut in the company's sales volume target for the year.
Key Facts
- Standalone net profit for Q2 FY27 was Rs 1,773.73 crore, up about 315% from Rs 426.79 crore a year earlier.
- Revenue from operations rose about 20% to Rs 31,998 crore; sales turnover rose 20% from a year earlier and 22% from the previous quarter.
- Sales volume rose about 5% to roughly 5.16 million tonnes, from 4.91 million tonnes.
- First-half (April-September) net profit was about Rs 3,410 crore.
- Management expects crude steel production of about 22 million tonnes in FY27 but trimmed its sales volume guidance to 21 million tonnes from 22 million.
- The company reported lower debt; higher imported coking coal costs weighed on earnings per tonne.
Why It Matters
SAIL is one of the pillars of India's steel industry, supplying steel for railways, defence, infrastructure and manufacturing. Its results are watched as a signal of demand in the wider economy, especially government-led building of roads, railways and housing, which use large amounts of steel.
The headline profit growth looks dramatic, but part of it reflects a weak base: profit a year earlier was low. Revenue growing by a fifth, with sales volume up about 5%, also suggests that the company got better prices per tonne than a year ago, not just that it sold more steel. The fall in debt is good news for a company that has spent heavily on expansion and gives it more room to invest.
The share price fall tells the other half of the story. Steel makers depend on coking coal, much of which India imports. When its price rises, margins shrink unless steel prices rise as fast. SAIL said higher imported coal costs hurt its earnings per tonne. Cutting the year's sales volume target from 22 to 21 million tonnes also suggests that the company expects slower growth in what it can sell in the second half, which investors did not like.
For the government, which is SAIL's majority owner, better profits mean the prospect of higher dividends. For steel users, from small fabricators to large builders, the company's outlook gives a sense of supply and price trends in the months ahead.
| Measure | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Standalone net profit | Rs 1,773.73 crore | Rs 426.79 crore |
| Revenue from operations | Rs 31,998 crore | Rs 26,704 crore |
| Sales volume | About 5.16 million tonnes | 4.91 million tonnes |
Impact
Short-term: The strong quarter improves SAIL's finances, but the lower volume guidance and cost pressure weighed on its shares, and analysts will watch coking coal prices closely.
Long-term: Lower debt gives SAIL more room to fund expansion plans and dividends. Its performance will continue to track government infrastructure spending and global raw material prices.
Who is affected: SAIL's shareholders, including the Government of India, its employees, steel buyers in construction and manufacturing, and suppliers of raw materials. This report is for information only and is not investment advice.
Key Takeaway
SAIL's September-quarter profit rose more than fourfold to Rs 1,774 crore on higher revenue, but costlier coking coal and a lower sales target sent its shares down about 4%.
Questions and Answers
How much profit did SAIL make in Q2 FY27?
SAIL reported a standalone net profit of Rs 1,773.73 crore for July-September 2026, up about 315% from Rs 426.79 crore a year earlier.
Why did SAIL shares fall despite higher profit?
Investors were concerned about pressure on margins from higher imported coking coal costs, and about the company cutting its FY27 sales volume guidance to 21 million tonnes from 22 million tonnes.
How much steel did SAIL sell in the quarter?
About 5.16 million tonnes, up roughly 5% from 4.91 million tonnes in the same quarter a year earlier.
What is SAIL's outlook for FY27?
Management expects crude steel production of about 22 million tonnes and sales of about 21 million tonnes for the year.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Siddharth Verma, Business CorrespondentCovers Business and more for Peepals Bharat. All stories by Siddharth Verma
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Siddharth Verma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
