SAIL Q1 FY27 net profit drops 10% to ₹1,644 crore as revenue slides 15%
Synopsis
SAIL's Q1 FY27 profit fell 10% sequentially to ₹1,644 crore as revenue slid nearly 15% — yet the company quietly expanded its operating margin by 150 basis points to 15.8%, signalling tighter cost control even as top-line pressures mount. The stock shrugged off the earnings dip, closing higher on the NSE while the broader Nifty fell.
Key Takeaways
SAIL reported a consolidated net profit of ₹1,644 crore in Q1 FY27 , down 10.4% from ₹1,835 crore in Q4 FY26.
Revenue from operations fell 14.8% quarter-on-quarter to ₹26,246 crore .
EBITDA declined 5.8% sequentially to ₹4,153 crore .
Operating margin improved 150 basis points to 15.8% , up from 14.3% in the previous quarter.
A one-time charge of ₹144 crore impacted Q1 FY27 earnings.
SAIL shares closed at ₹161.45 , up 0.34% on the NSE , gaining 18.57% over the past 12 months .
Steel Authority of India Limited (SAIL) posted a consolidated net profit of ₹1,644 crore for the first quarter of FY27 (April–June 2025), marking a 10.4% sequential decline from ₹1,835 crore in the preceding January–March quarter. Lower revenue and a sharp fall in other income weighed on the state-run steelmaker's earnings, according to its stock exchange filing.
Revenue and EBITDA Under Pressure
Revenue from operations fell 14.8% quarter-on-quarter to ₹26,246 crore, compared with ₹30,813 crore in Q4 FY26. Earnings before interest, taxes, depreciation and amortisation (EBITDA) slipped 5.8% sequentially to ₹4,153 crore from ₹4,408 crore.
Other income declined sharply to ₹206 crore during the quarter from ₹352 crore in the preceding period. The company also disclosed a one-time cost of ₹144 crore during the April–June quarter, which further dented financial performance.
Operating Margin Improves Despite Headwinds
Notably, SAIL's operating margin improved by 150 basis points to 15.8% from 14.3% in the previous quarter — a sign that cost discipline is bearing fruit even as top-line pressures persist. This margin expansion, achieved alongside a revenue contraction, suggests tighter operational controls rather than volume-led gains.
What the Management Said
Dr. Ashok Kumar Panda, Chairman and Managing Director of SAIL, said the domestic steel industry had demonstrated resilience amid global uncertainties, backed by sustained domestic consumption. 'SAIL, through enhanced operational efficiencies, prudent cost management and focused marketing initiatives, has delivered a significantly profitable first quarter in FY27,' Panda stated. He added that the company 'remains confident of leveraging robust manufacturing capabilities and continues to strengthen performance while capitalizing on the sustained domestic steel demand.'
Stock Performance and Investor Outlook
Despite the weaker quarterly numbers, SAIL shares closed 0.34% higher at ₹161.45 per share on the National Stock Exchange (NSE) on Friday, 24 July, outperforming the benchmark Nifty50, which ended the session 0.43% lower. The stock has gained 9.84% on a year-to-date basis and 18.57% over the past 12 months, suggesting sustained investor confidence in the longer-term thesis.
This comes amid a broader softening in domestic steel prices and moderating global demand — conditions that have squeezed revenues across the sector. With infrastructure spending remaining a key government priority, SAIL's order pipeline and volume trajectory in subsequent quarters will be closely watched.
Point of View
Making the underlying performance look marginally better than the headline numbers suggest. The real concern is the 14.8% revenue drop, which reflects softer domestic steel realisations and potentially weaker offtake. If infrastructure-linked demand stays firm in H2 FY27, SAIL could recover on volumes — but the pricing environment remains the swing factor that management commentary has not fully addressed.
NationPress
24 Jul 2026
Frequently Asked Questions
What were SAIL's Q1 FY27 financial results?
SAIL reported a consolidated net profit of ₹1,644 crore in Q1 FY27 (April–June 2025), down 10.4% from ₹1,835 crore in the previous quarter. Revenue from operations declined 14.8% quarter-on-quarter to ₹26,246 crore.
Why did SAIL's revenue fall in Q1 FY27?
Revenue from operations dropped 14.8% sequentially to ₹26,246 crore, from ₹30,813 crore in Q4 FY26. The decline was driven by lower realisations and softer demand conditions, compounded by a sharp fall in other income to ₹206 crore from ₹352 crore.
Did SAIL's operating margin improve in Q1 FY27?
Yes. Despite the revenue and profit decline, SAIL's operating margin expanded by 150 basis points to 15.8% from 14.3% in Q4 FY26, reflecting improved cost management and operational efficiencies.
What was the one-time cost that impacted SAIL's Q1 FY27 earnings?
SAIL disclosed a one-time cost of ₹144 crore during the April–June quarter that weighed on its financial performance. The company did not provide further details on the nature of this charge in its stock exchange filing.
How did SAIL shares perform after the Q1 FY27 results?
SAIL shares closed 0.34% higher at ₹161.45 on the NSE on 24 July, outperforming the Nifty50, which fell 0.43% on the same day. The stock has risen 9.84% year-to-date and 18.57% over the past 12 months.
