SAIL profit jumps 318.05% YoY as sequential margin falls 2.64 points
Revenue growth outpaced costs YoY, but the opposite held sequentially; other income supplied 10.34% of pre-tax profit.
Filed 27 Oct 2026, 20:39 IST · after market close · Steel Authority of India Ltd (SAIL)
Key takeaways
- Consolidated net profit rose 318.05% YoY as revenue grew 19.82% while expenses rose 14.91%.
- Sequentially, operating margin fell 2.64 percentage points because expenses grew 25.75%, faster than revenue at 21.92%.
- Other income contributed 10.34% of pre-tax profit, while operating margin was 1.45 percentage points below the 14.63% median of 25 reporting commodity peers.
Price around the results
YoY profit recovery, with a large other-income swing
SAIL's consolidated operating profit rose 66.77% YoY as revenue growth outpaced expense growth, lifting operating margin by 3.71 percentage points. The sharper 317.94% rise in pre-tax profit also reflects other income moving from negative Rs 34.39 cr to Rs 240.44 cr. The tax rate changed by only -0.02 percentage points, so the net profit increase was not driven by a lower tax burden.
Q2 margin gives back part of the Q1 improvement
Sequentially, expenses grew 25.75%, faster than revenue at 21.92%, which cut operating margin by 2.64 percentage points to 13.18%. The margin had risen from 8.38% in Q3FY26 to 14.31% in Q4FY26 and 15.82% in Q1FY27, making Q2FY27 a reversal after two quarters of improvement. SAIL's margin was 1.45 percentage points below the 14.63% median among 25 commodity peers that had reported.
H1 volumes were led by domestic sales
The presentation reported H1 FY27 crude steel production of 9.605 MT and saleable steel production of 8.390 MT. Total sales were 9.326 MT, including 9.180 MT domestically and 0.146 MT through exports. Management said India's steel demand growth is projected at 7.9% in CY 2026 and 8.0% in CY 2027, while it expects global demand to decline 0.1% in CY 2026 before growing 1.7% in CY 2027.
No immediate market reaction after the late filing
The consolidated results were filed at 20:39 IST after market close, so no post-results share-price reaction is covered here. Across the stock's eight recent results reactions, four were positive and four negative, with a median absolute move of 1.96%. That history points to a balanced and generally contained response pattern rather than a consistent direction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹31,998 cr | ₹26,246 cr | +21.92% | +19.82% |
| Other income | ₹240 cr | ₹87 cr | +175.32% | — |
| Expenses | ₹27,781 cr | ₹22,093 cr | +25.75% | +14.91% |
| Operating profit | ₹4,216 cr | ₹4,153 cr | +1.54% | +66.77% |
| Operating margin (%) | 13.18% | 15.82% | — | — |
| Interest | ₹523 cr | ₹493 cr | +6.16% | +8.08% |
| Depreciation | ₹1,609 cr | ₹1,560 cr | +3.13% | +10.71% |
| Profit before tax | ₹2,324 cr | ₹2,187 cr | +6.30% | +317.94% |
| Tax | ₹574 cr | ₹543 cr | +5.76% | +317.60% |
| Net profit | ₹1,750 cr | ₹1,644 cr | +6.47% | +318.05% |
| EPS (₹) | ₹4.24 | ₹3.98 | +6.53% | +319.80% |
Operating margin of 13.18% compares with a Commodities sector median of 14.63% across 25 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.37% | -5.15% |
Volume on the results session was 3.03× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- H1 FY27 crude steel production was 9.605 MT and saleable steel production was 8.390 MT.
- H1 FY27 total sales were 9.326 MT, including 9.180 MT of domestic sales and 0.146 MT of exports.
Guidance & outlook
- Global steel demand is expected to decrease by 0.1% in CY 2026 and increase by 1.7% in CY 2027.
- Global demand excluding China is expected to grow 1.5% in CY 2026 and 4.0% in CY 2027.
- India's steel demand growth is projected at 7.9% in CY 2026 and 8.0% in CY 2027.
- The World Bank projects India's FY27 growth at 7.1%.
Problems & risks
- Global steel demand is expected to decline marginally in CY 2026 before growing in CY 2027.
- China's steel demand is expected to decline by 2% in CY 2026 and 1% in CY 2027.
- The prevailing Middle East scenario is disrupting the energy sector.
What to watch
- Whether operating margin moves back above the 13.18% reported in Q2FY27.
- Whether expense growth remains below revenue growth after the Q2FY27 gap of 25.75% versus 21.92%.
- Whether other income remains a material contributor after accounting for 10.34% of pre-tax profit.