In , Steel Authority of India Ltd (Steel) is outperforming Nifty 500 with +16.5% relative strength. Fundamentals: Average. On a 12-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Debt Reduction: ₹5,000 Cr in 9M
Impact: ₹1,000 Cr interest saving
“Reduction in debt is close to Rs 5,000 crores in nine-monthly... interest cost reduction could be around Rs. 1000 crores.”
What: Hot Metal Target: 22.5 MT
Impact: 14-15% EBITDA Margin
“So next year, we are targeting 22.5 million tonnes of hot metal... it will go towards 14-15% something like that in Quarter 4.”
What: Value-Added Share: 57%
“Yes, total value-added is around 57%... going forward, we are targeting more than 60%.”
What: PAT growth of 60% YoY in 9M FY26
“And PAT increased by 60% in nine-monthly of this year as compared to CPLY last year. It is highlighting operational efficiency, liquidation of inventory.”
What: ₹7,500 Cr → ₹10,000 Cr
“For the full year, initial guidance was Rs.7,500 and then final guidance is Rs.10,000 crores.”
Earnings deceleration risks from management commentary
Trigger: Global supply dynamics and increasing demand have pushed coal prices higher.
Impact: PAT impact: ₹1,500/ton cost increase
Management view: Partly offset by structural savings in power costs through renewable energy sourcing.
Monitor: commodity
Trigger: Periodic industry-wide wage agreements for public sector employees.
Management view: Manpower reduction through natural attrition (50,000 employees currently) will help mitigate the impact.
Monitor: labor
Key quotes from recent conference calls
“And your 18.5 million tons core volume that remains intact for FY26? Dr. Ashok Kumar Panda: Yes, yes, yes, that remains intact. [Previous Sales Volume Guidance guidance]”
“And for this year, we are targeting in excess of Rs.7,500 crores of CAPEX. [Previous CAPEX Guidance FY26 guidance]”
“in case of IISCO, where we are planning 4.5 million tons of expansion at a cost of around Rs.36,000 crores. [Initiative: IISCO Expansion]”
“overall, for the year, the interest cost reduction could be around Rs. 1000 crores. [Initiative: Debt Reduction]”
Headline numbers from the latest earnings call
Revenue
₹79,997 Cr
Why: Revenue increased broadly in line with the growth in sales volume which grew by 16.3% during the nine-monthly period.
Growth was driven by higher sales volumes and liquidation of inventory despite a subdued pricing environment earlier in the year.
PAT
Not Disclosed
Why: The increase was driven by operational efficiency, liquidation of inventory due to sales growth, and cost optimization through good treasury management.
The significant PAT growth reflects better financial prudence and a reduction in interest burdens due to debt deleveraging.
Other Highlights
• Debt reduction of close to ₹5,000 crores in the nine-monthly period, with an additional ₹2,000 crores reduced in January alone.
• Sales volume grew by 16.3% for the company during the nine-monthly period of FY25-26.
• Crude steel production grew by 2% from 14.08 to 14.35 million tonnes in the nine-monthly period.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Crude Steel Production
14.35 MT
Why: Steady production growth despite maintenance shutdowns at some facilities.
Sales Volume
14.6 MT
Why: Aggressive inventory liquidation and outreach to retail consumers.
Net Debt Reduction
₹5,000 Cr
Why: Strong cash flows from inventory liquidation used to repay borrowings.
Coking Coal Cost
₹18,351
Why: Global price increases and rupee depreciation impacting imported coal costs.
Value-Added Product Mix
57%
Why: Strategic focus on improving product mix to enhance margins.
NSR - Flat Products
₹46,580
Why: Subdued market conditions and global pricing pressure during the third quarter.
NSR - Long Products
₹49,021
Why: Better demand in the construction segment compared to flat products.
Finished Steel Inventory
1.5 MT
Why: Aggressive liquidation to release working capital and reduce debt.
Forward-looking targets from management for Q4 FY26
OPM Guidance
14–15%
Capex Plan
₹15000 Cr
Revenue expected to grow in line with volume targets and improving price realizations in Q4.
EBITDA margins expected to improve significantly in the final quarter.
₹15,000 Cr
IISCO expansion and de-bottlenecking projects across various plants.
Targeting a significant increase in hot metal and saleable steel production.
Guidance Changes
FY26 CAPEX: ₹7,500 Cr → ₹10,000 Cr
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +12% | 0% | Accelerating |
| PAT (Net Profit) | +163% | -42% | Stable |
| OPM | 8.0% | 0 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Steel Authority of India Ltd's latest quarterly results (Dec 2025) show
Steel Authority of India Ltd's profit is growing with an stable trend.
Steel Authority of India Ltd's revenue growth trend is accelerating.
Steel Authority of India Ltd's operating margin is stable.
Steel Authority of India Ltd's long-term compounding rates
Steel Authority of India Ltd's earnings growth is stable with negative momentum on a sequential basis.
Steel Authority of India Ltd's trailing twelve month (TTM) performance
Steel Authority of India Ltd appears significantly overvalued based on our fair value analysis.
Steel Authority of India Ltd's current PE ratio is 25.2x.
Steel Authority of India Ltd's current PE is 25.2x.
Steel Authority of India Ltd's price-to-book ratio is 1.3x.
Steel Authority of India Ltd is rated Average with a fundamental score of 43.75/100. This score is calculated from objective financial metrics
Steel Authority of India Ltd has a debt-to-equity ratio of N/A.
Steel Authority of India Ltd's return ratios over recent years
Steel Authority of India Ltd's operating cash flow is positive (FY2025).
Steel Authority of India Ltd's current dividend yield is 0.87%.
Steel Authority of India Ltd's shareholding pattern (Mar 2026)
Steel Authority of India Ltd's promoter holding has remained stable recently.
Steel Authority of India Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Steel Authority of India Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
Steel Authority of India Ltd has 5 key growth catalysts identified from recent earnings analysis
Steel Authority of India Ltd has 2 key risks worth monitoring
In Q3 FY26, Steel Authority of India Ltd's management highlighted
Steel Authority of India Ltd's management has provided the following forward guidance for Q4 FY26
Steel Authority of India Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Steel Authority of India Ltd may be worth studying
Steel Authority of India Ltd investment thesis summary:
Steel Authority of India Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
