Steel Authority of India Q2 FY27 results: net profit ₹1,750 crore vs ₹418.72 crore, revenue up 19.8%

How did Steel Authority of India perform in Q2 FY27?

Steel Authority of India reported consolidated revenue of ₹31,998 crore for Q2 FY27, up ₹5,293 crore or 19.8% from ₹26,704 crore in Q2 FY26 and ₹5,752 crore or 21.9% from ₹26,246 crore in Q1 FY27. Total income was ₹32,230 crore, up 19.8% from a year earlier and 21.8% from the previous quarter.

EBITDA for the quarter was ₹4,216 crore, up ₹1,688 crore or 66.8% from ₹2,528 crore in Q2 FY26, though it rose only ₹63.76 crore or 1.5% from ₹4,153 crore in Q1 FY27. The EBITDA margin was 13.2%, up 3.7 percentage points from 9.5% a year earlier but down 2.6 percentage points from 15.8% in the previous quarter.

Profit before tax was ₹2,244 crore, up ₹1,786 crore or 389.9% from ₹457.96 crore in Q2 FY26 and ₹82.66 crore or 3.8% from ₹2,161 crore in Q1 FY27. Net profit was ₹1,750 crore against ₹418.72 crore a year earlier and ₹1,644 crore in the previous quarter, while basic EPS was ₹4.24 against ₹1.01 and ₹3.98. On the standalone basis, revenue was ₹31,998 crore, up 19.8%, and net profit was ₹1,773.73 crore against ₹426.79 crore in Q2 FY26.

What changed in Steel Authority of India's costs and profit?

Total expenses were ₹29,914 crore in Q2 FY27, up ₹3,800 crore or 14.6% from ₹26,114 crore in Q2 FY26 and ₹5,767 crore or 23.9% from ₹24,146 crore in Q1 FY27. Cost of materials was ₹13,914 crore, up ₹3,520 crore or 33.9% from a year earlier and ₹1,281 crore or 10.1% from the previous quarter.

Employee cost was ₹2,864 crore, down ₹78.42 crore or 2.7% from ₹2,943 crore in Q2 FY26 and down ₹76.81 crore or 2.6% from Q1 FY27. Finance costs were ₹523.40 crore, up ₹39.12 crore or 8.1% from a year earlier and ₹30.38 crore or 6.2% from the previous quarter, while depreciation was ₹1,609 crore against ₹1,453 crore and ₹1,560 crore.

Other expenses were ₹8,115 crore, up ₹263.96 crore or 3.4% from ₹7,851 crore in Q2 FY26 but down ₹185.50 crore or 2.2% from ₹8,301 crore in Q1 FY27. Other income was ₹232.33 crore, up ₹26.46 crore or 12.9% from a year earlier and ₹26.79 crore or 13.0% from the previous quarter.

The exceptional item was a charge of ₹72.69 crore in the quarter, against ₹338.44 crore in Q2 FY26 and ₹144.01 crore in Q1 FY27. Tax was ₹573.87 crore, up ₹436.45 crore or 317.6% from ₹137.42 crore a year earlier and ₹31.24 crore or 5.8% from ₹542.63 crore in the previous quarter.

How did the first half of FY27 go?

For the first half of FY27, revenue was ₹58,243 crore, up ₹5,617.29 crore or 10.7% from ₹52,626 crore in H1 FY26. Total income was ₹58,681 crore against ₹52,994 crore, an increase of ₹5,687.15 crore or 10.7%.

Profit before tax rose to ₹4,404 crore from ₹1,353 crore, an increase of ₹3,051.75 crore or 225.6%. Net profit was ₹3,394.52 crore against ₹1,163.3 crore, up ₹2,231.22 crore or 191.8%, and EPS was ₹8.22 against ₹2.82, up ₹5.4 or 191.5%.

What do the balance sheet and cash flow show?

Total assets were ₹1,41,542 crore as on 30 September 2026 against ₹1,35,896 crore as on 31 March 2026, and total equity was ₹62,520 crore against ₹60,356 crore. Borrowings fell to ₹20,583 crore from ₹31,928 crore, while cash and cash equivalents were ₹105.42 crore against ₹28.66 crore.

Inventories rose to ₹25,572 crore from ₹23,553 crore, trade receivables fell to ₹5,278 crore from ₹6,507 crore, and trade payables rose to ₹12,011 crore from ₹10,886 crore over the same period.

For H1 FY27, operating cash flow was ₹7,489 crore against ₹7,976 crore in H1 FY26. Investing outflow was ₹5,069 crore against ₹3,431 crore, financing outflow was ₹2,343 crore against ₹4,590 crore, and capital expenditure was ₹5,333 crore against ₹3,923 crore.

How has Steel Authority of India done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, while profit rose year on year in each of the last four quarters. Over the period shown, revenue was lowest at ₹24,490 crore in Q3 FY25 and highest at ₹31,998 crore in Q2 FY27.

Net profit bottomed at ₹141.89 crore in Q3 FY25 and reached its high of ₹1,835 crore in Q4 FY26, before ₹1,644 crore in Q1 FY27 and ₹1,750 crore in Q2 FY27. The EBITDA margin was lowest at 8.3% in Q3 FY25 and highest at 15.8% in Q1 FY27, then eased to 13.2% in Q2 FY27.

Which businesses drove the quarter?

Bhilai Steel Plant reported revenue of ₹9,125 crore, up 18.1%, with EBIT of ₹964 crore. Durgapur Steel Plant reported revenue of ₹3,283 crore, up 18.5%, and EBIT of ₹119 crore. Rourkela Steel Plant reported revenue of ₹7,935 crore, up 26.9%, and EBIT of ₹730 crore.

Bokaro Steel Plant reported revenue of ₹8,355 crore, up 35.9%, with EBIT of ₹849 crore. IISCO Steel Plant reported revenue of ₹4,276 crore, up 32.9%, and EBIT of ₹367 crore. Alloy Steel Plant reported revenue of ₹411 crore, up 18.8%, and EBIT of ₹12 crore.

Salem Steel Plant reported revenue of ₹557 crore, up 6.5%, with an EBIT loss of ₹75 crore against a loss of ₹77.72 crore. Visvesaraya Iron & Steel Plant reported revenue of ₹124 crore, up 131.9%, and EBIT of ₹9 crore against a loss of ₹9.21 crore. The Others segment reported revenue of ₹786 crore, down 56.4%, with an EBIT loss of ₹54 crore.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with segment information, the statement of assets and liabilities, the cash flow statement, the limited review report, a press release and the security cover available in case of non-convertible debt securities. The board meeting on 21 October 2026 commenced at 1600 hours and concluded at 1825 hours.

On 28 October 2026, the company filed the profiles of two Government nominee directors. The filing stated that the Ministry of Steel had appointed Ms. Sarita Chauhan, Additional Secretary and Financial Advisor, and Shri Vinod Kumar Tripathi, Joint Secretary, Ministry of Steel, as Government Nominee Directors on the board with immediate effect till further orders. No dividend or fund raise was disclosed in the same-day filings.

What did the auditors point out?

The limited review report on the standalone financial results carried an emphasis of matter. The auditors highlighted that revenue from operations includes sales to Government agencies aggregating to ₹2,712.55 crore for the quarter and ₹4,775.53 crore for the six-month period ended 30 September 2026, and cumulatively ₹23,456.97 crore up to that date, recognised based on provisional prices as per the terms of sales with such Government agencies.

The auditors also drew attention to ₹216.70 crore considered as an exceptional item relating to Voluntary Retirement of Employees, and to the suspension of certain officers and employees at the company's direction from the Ministry of Steel, with an investigation to be conducted by external investigative agencies on certain matters relating to policy and pricing decisions of the company. The auditors stated that in view of management's internal assessment, the matter is not likely to have a material impact on the operations of the company or its financial statements, and their conclusion was not modified in respect of these matters.

As an other matter, the auditors noted that the board did not have the requisite number of independent directors and non-executive directors and that the company did not have a woman director, so the composition of the board and certain committees, including the audit committee and the nomination and remuneration committee, was not in compliance with Sections 149, 177 and 178 of the Act and Regulations 17, 18 and 19 read with Schedule II of the SEBI LODR Regulations. The auditors also stated they did not review the financial results of nine branches, units and marketing regions included in the standalone statement.

What did Steel Authority of India's management say?

Management said FY27 saleable-steel sales guidance was reset to about 21 Mt from the 22 Mt level discussed earlier, with crude steel production expected at around 22 Mt. The company targets FY27 iron ore fines sales of 7-8 Mt and own iron ore output of 48-50 Mt, and year-end steel inventory of 1.2-1.3 Mt. Chairman and Managing Director Dr. Ashok Kumar Panda said, "We sold around 2.5 million tons of iron ore fines in H1 as compared to 0.9 million tons last year, and our target is around 7 million to 8 million tons for this year."

Management identified imported coking coal remaining high and volatile on geopolitics and China demand, heavy monsoon rains disrupting blast-furnace productivity, expansion capex bunching debt and requiring an FPO, iron ore sales facing permit and government-approval obstacles in Jharkhand and Odisha, and repo-rate increases lifting borrowing costs as risks.

How did Steel Authority of India shares react?

The results were announced after market hours. From the price when the filing appeared, the stock fell 2.0% within 5 minutes, 0.8% within 15 minutes and 1.2% within 30 minutes. On the reaction day it closed 5.4% lower from the previous close of ₹171.20, against a 0.8% fall for the median move of other Iron & Steel stocks.

By the next day's close the stock was down 6.0% from its pre-results close, against a 0.1% rise for the industry median, and by the fifth session it was down 0.6% from the same close, against a 2.7% rise for the median peer move. On the reaction day the stock underperformed the industry median by 4.6 percentage points, and by the fifth session by 3.4 percentage points.

Earlier reaction-day moves were mixed: 0.9% on 24 July 2026, negative 1.2% on 15 May 2026, negative 1.0% on 30 January 2026, negative 2.2% on 29 October 2025, negative 3.2% on 25 July 2025, 1.5% on 28 May 2025, 5.6% on 11 February 2025 and negative 4.3% on 7 November 2024.

How did other Iron & Steel companies do?

Five other Iron & Steel companies had filed this quarter by 4 November 2026, with a median revenue growth of 20.7%. Of these, two grew slower than Steel Authority of India and three grew faster than it, and four reported higher profit. Steel Authority of India's own revenue growth of 19.8% was below the peer median of 20.7%.