Management Or Ownership Change
Expected: Q3 FY26HIGH confidence
What: Promoter Stake: 43.58%
SAL Steel Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +25.2%Weak5w StreakRe-Entry
In , SAL Steel Ltd (Steel - Sponge Iron) is outperforming Nifty 500 with +25.2% relative strength. Fundamentals: Weak. On a 5-week streak.
SAL Steel Ltd Key Facts
- Market Cap
- ₹816 Cr
- PAT Growth YoY
- +1075%
- Revenue Growth YoY
- -99%
- OPM
- -1.4%
- RS vs Nifty 500
- +25.2%
Danger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
💰Trading 98% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Management Or Ownership Change
Q3 FY26HIGH
2. Operating Leverage Inflection
Q3 FY26MEDIUM
Key Risks
1. Rising coking coal costs and lower steel realizations are pressuring margins acr
HIGH2. Pending tax disputes regarding service tax on ocean freight and operational debt
MEDIUMSector-Specific Signals
Capacity Utilisation0%Significant decrease
EBITDA per Tonne (Sector Peer SAIL)₹4,662Not Given
Working Capital Days18.8 days
Key Numbers
PAT Growth YoY
+1075%
Inflection Up
Revenue YoY
-99%
Stable
Operating Margin
-1.4%
-760 bps YoY
Current Price
₹56
Fundamental Score
24/100
Weak
3Y PAT CAGR
-50%
Market Cap
816 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are SAL Steel Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: Q3 FY26MEDIUM confidence
What: Operating Expense: -₹11.16 Cr
Impact: ₹13.36 Cr Operating Profit
What Are the Key Risks for SAL Steel Ltd?
Earnings deceleration risks from management commentary
Rising coking coal costs and lower steel realizations are pressuring margins acr
HIGHTrigger: Rising coking coal costs and lower steel realizations are pressuring margins across the sector.
Impact: PAT impact: ₹1,530/tonne margin hit
Management view: Not Given
Monitor: commodity
Pending tax disputes regarding service tax on ocean freight and operational debt
MEDIUMTrigger: Pending tax disputes regarding service tax on ocean freight and operational debt claims.
Impact: PAT impact: ₹1.35 Cr tax matter
Management view: Company claims no malafide intention; under impression no tax was chargeable on CIF transactions.
Monitor: litigation
What Did SAL Steel Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹2.20 Cr
YoY -98.86%QoQ -96.65%
Revenue collapsed by over 98% YoY as the company halted operations for extensive maintenance across its manufacturing plants.
EBITDA
₹16.06 Cr
YoY +173.21%Margin 730%
Despite the revenue drop, EBITDA turned positive due to negative operating expenses (inventory adjustments) and other income.
PAT
₹6.63 Cr
QoQ +77.75%
The company swung to a profit of ₹6.63 Cr from a loss in the previous year, aided by a sharp reduction in operating costs.
Other Highlights
• Total Operating Expense was -₹11.16 Cr due to inventory adjustments during maintenance.
• Sree Metaliks Limited acquired sole control and promoter status following a successful open offer.
• Board approved raising borrowing and pledging limits to ₹2000 Cr.
What Sector Metrics Matter for SAL Steel Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Capacity Utilisation
0%
YoY Significant decreaseQoQ Significant decrease
Why: Maintenance activities carried out across manufacturing plants during the quarter.
EBITDA per Tonne (Sector Peer SAIL)
₹4,662
YoY Not GivenQoQ -15%
Why: Lower steel realisations and higher coking coal costs.
Working Capital Days
18.8 days
QoQ -6.4 days
Why: Company's working capital requirements have reduced from 25.2 days to 18.8 days.
How Fast Is SAL Steel Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -99% | +3% | Stable |
| PAT (Net Profit) | +1075% | -50% | Inflection Up |
| OPM | -1.4% | -760 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: SAL Steel Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were SAL Steel Ltd's latest quarterly results?
SAL Steel Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +1075.0% (turning around (inflection up))
- Revenue Growth YoY: -98.9%
- Operating Margin: -1.4% (volatile)
Is SAL Steel Ltd's profit growing or declining?
SAL Steel Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +1075.0% (latest quarter)
- PAT Growth QoQ: +77.7% (sequential)
- 3-Year PAT CAGR: -50.0%
- Trend: Turning around (inflection up) — consistent growth pattern
What is SAL Steel Ltd's revenue growth trend?
SAL Steel Ltd's revenue growth trend is stable.
- Revenue Growth YoY: -98.9%
- Revenue Growth QoQ: -96.7% (sequential)
- 3-Year Revenue CAGR: +2.5%
How is SAL Steel Ltd's operating margin trending?
SAL Steel Ltd's operating margin is volatile.
- Current OPM: -1.4%
- OPM Change YoY: -7.6% basis points
- OPM Change QoQ: -21.1% basis points
What is SAL Steel Ltd's 3-year profit and revenue CAGR?
SAL Steel Ltd's long-term compounding rates
- 3-Year Profit CAGR: -50.0%
- 3-Year Revenue CAGR: +2.5%
Is SAL Steel Ltd's growth accelerating or decelerating?
SAL Steel Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: 0.0% bps
- Sequential Acceleration: 0.0% bps
- Margin Warning: Operating margins are under pressure
What is SAL Steel Ltd's trailing twelve month (TTM) performance?
SAL Steel Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-5 Cr
- TTM PAT Growth: -80.0% YoY
- TTM Revenue: ₹313 Cr
- TTM Revenue Growth: -44.9% YoY
- TTM Operating Margin: 2.4%
Is SAL Steel Ltd overvalued or undervalued?
SAL Steel Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Price-to-Book: 18.7x
What is SAL Steel Ltd's price-to-book ratio?
SAL Steel Ltd's price-to-book ratio is 18.7x.
- Price-to-Book (P/B): 18.7x
- Book Value per Share: ₹3
- Current Price: ₹56
Is SAL Steel Ltd a fundamentally strong company?
SAL Steel Ltd is rated Weak with a fundamental score of 24/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: -98.9% (10% weight)
- PAT Growth YoY: +1075.0% (10% weight)
- PAT Growth QoQ: +77.7% (10% weight)
- Margins stable (10% weight)
Is SAL Steel Ltd debt free?
SAL Steel Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹198 Cr
What is SAL Steel Ltd's return on equity (ROE) and ROCE?
SAL Steel Ltd's return ratios over recent years
- FY2023: ROCE 8.0%
- FY2024: ROCE 8.0%
- FY2025: ROCE 7.0%
Is SAL Steel Ltd's cash flow positive?
SAL Steel Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-21 Cr
- Free Cash Flow (FCF): ₹-39 Cr
What is SAL Steel Ltd's dividend yield?
SAL Steel Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹56
Who holds SAL Steel Ltd shares — promoters, FII, DII?
SAL Steel Ltd's shareholding pattern (Mar 2026)
- Promoters: 71.0%
- FII (Foreign): 0.0%
- Public: 29.0%
Is promoter holding increasing or decreasing in SAL Steel Ltd?
SAL Steel Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 71.0% (Mar 2026)
- Previous Quarter: 71.0% (Feb 2026)
- Change: 0.00% (stable)
How long has SAL Steel Ltd been outperforming Nifty 500?
SAL Steel Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is SAL Steel Ltd a new momentum entry or an established outperformer?
SAL Steel Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for SAL Steel Ltd?
SAL Steel Ltd has 2 key growth catalysts identified from recent earnings analysis
- Management Or Ownership Change — A change in control often leads to operational restructuring and fresh capital infusion.
- Operating Leverage Inflection — Maintenance-led cost reductions and inventory shifts created a temporary profit spike despite zero sales.
What are the key risks in SAL Steel Ltd?
SAL Steel Ltd has 2 key risks worth monitoring
- [HIGH] Rising coking coal costs and lower steel realizations are pressuring margins acr — Rising coking coal costs and lower steel realizations are pressuring margins across the sector.
- [MEDIUM] Pending tax disputes regarding service tax on ocean freight and operational debt — Pending tax disputes regarding service tax on ocean freight and operational debt claims.
What is SAL Steel Ltd's management guidance for growth?
SAL Steel Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
What sector-specific metrics matter most for SAL Steel Ltd?
SAL Steel Ltd's most important sub-sector-specific KPIs from the latest concall
- Capacity Utilisation: 0% (YoY Significant decrease) (QoQ Significant decrease) — Maintenance activities carried out across manufacturing plants during the quarter.
- EBITDA per Tonne (Sector Peer SAIL): ₹4,662 (YoY Not Given) (QoQ -15%) — Lower steel realisations and higher coking coal costs.
- Working Capital Days: 18.8 days (QoQ -6.4 days) — Company's working capital requirements have reduced from 25.2 days to 18.8 days.
Is SAL Steel Ltd worth studying for long term investment?
Based on quantitative research signals, here is why SAL Steel Ltd may be worth studying
- Earnings growing at +1075.0% YoY
What is the investment thesis for SAL Steel Ltd?
SAL Steel Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Management Or Ownership Change
Risk Factors (Bear Case)
- Margins under pressure
- Appears significantly overvalued
- Key risk: Rising coking coal costs and lower steel realizations are pressuring margins acr
What is the future outlook for SAL Steel Ltd?
SAL Steel Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Management Or Ownership Change
- Key Risk: Rising coking coal costs and lower steel realizations are pressuring margins acr
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.