Q1 2026 Steel Authority of India Ltd Earnings Call Transcript
Key Points
- Steel Authority Of India Ltd (BOM:500113) achieved a 12% growth in saleable steel production, reaching 4.7 million tonnes in Q1 FY26 compared to the previous year.
- Sales volume increased by 15% to 4.55 million tonnes, marking the best ever first quarter performance in sales for the company.
- The company reduced its borrowings by INR 1,100 crores, bringing it down to INR 28,741 crores as of June 30, 2025.
- Operational efficiencies improved with better fuel rate, coal to hot metal ratio, and reduced coke rates, contributing to cost advantages.
- India's economic fundamentals remain strong, with GDP growth projected between 6.3% to 6.7% through 2026, supporting domestic steel demand growth over 8% annually.
- Global economic challenges, including inflationary pressures and trade tensions, have led to a decline in GDP growth rates worldwide, impacting the steel market.
- The global steel market is experiencing slow growth, with demand expected to rise by just 1.7% globally, and advanced economies facing stagnant or declining demand.
- China's historic slowdown in domestic demand and excess steel production has led to global oversupply and price suppression, affecting international markets.
- The company faced a stock valuation impact of INR 950 crores due to reduced imported coal prices, affecting EBITDA negatively.
- Rising imports, particularly from China, Vietnam, and Japan, have surged over 24% in 2025, creating price pressure on domestic producers.
Ladies and gentlemen, good day, and welcome to Steel Authority of India Limited Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Ashish Kejriwal from Nuvama Wealth. Thank you, and over to you, sir.
Thank you, Amshad. Good afternoon, everyone. On behalf of Nuvama Wealth Management, we welcome you all for Steel Authority of India's first quarter call. We are pleased to host Dr. Ashok Panda, Director of Finance, along with his team.
Now, I would request the management for his opening remarks and, thereafter, we can open the call for Q&A. Thank you, and over to you, sir.
Thank you very much, Mr. Ashish. A very good afternoon, everyone, present on this con call. Let me welcome all our investors and analysts who are joining the results con call for the financial
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