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IndiaPulse

Steel Authority of India Limited (SAIL)

Mid Cap

Metals stocks · Mid cap · NSE

Steel Authority of India Limited (SAIL) is a major Indian public sector steel producer, operating integrated steel plants. It produces a wide range of steel products and has captive mines for iron ore, limestone, and dolomite.

₹196.8
-0.20 · -0.10%
Quote04 Sept, 03:59 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Metals P/E 20.4 (n=89)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.

Suggested next step
Momentum only
Trend is strong but fundamentals do not support a clean investment thesis.
Weak U-Score but strong trend: momentum may be ahead of fundamentals.
U-Score
WATCHLIST
34

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Healthy Trust
74

low confidence · 0/0 claims checked

Technical
Bullish
77

Timing lens: price trend and sector relative strength.

Result consistency
consistent
80

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Good · 70/100

Rev +1% YoY · PAT +121% YoY · margin expansion · operating leverage

Filed 30 Jun 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹26,246 Cr+1.3%-14.8%
EBITDA₹4,153 Cr+50.0%-5.8%
Operating margin16.0%+500 bps+200 bps
PAT₹1,644 Cr+120.7%-10.4%
PAT margin6.3%+339 bps+30 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis intactReviewed 2026-06-04T07:54:02.013Z
Management commentary snapshot

SAIL reported strong FY26 performance with PAT up 50.5% YoY and EBITDA up 11.7% YoY, driven by higher sales volumes and improved realizations. Q4 FY26 saw significant sequential profitability improvement, with EBITDA up 81.1% QoQ, despite flat sales volumes YoY for the quarter.

SAIL demonstrated robust financial and operational improvements in FY26, marked by significant PAT growth and enhanced EBITDA margins. Deleveraging continued, and key techno-economic parameters improved. The strong sequential Q4 performance, driven by sales price and raw material usage, indicates positive momentum, though flat quarterly sales volume needs monitoring.

Current business mix

Product Mix (FY26)

Latest issuer-disclosed distribution across 3 reported categories.

Businessmix
Flats50.9%
Longs35.7%
Semis13.4%
Growth engines

Domestic Steel Consumption

India's finished steel consumption grew ~8% over previous year in FY26.

Infrastructure & Capital Goods Demand

IIP growth driven majorly by Infrastructure Goods and Capital Goods in FY25-26.

Operational Efficiency

Improved techno-economic parameters like Coke Rate, BF Productivity, and Specific Energy Consumption in FY26.

Deleveraging

Borrowings (Non Ind AS) decreased from Rs. 29811 crore (Mar'25) to Rs. 21663 crore (Mar'26).

Tailwinds

Strong Indian Economic Growth

India's First Advance Estimates for FY26 at 7.4%, likely to remain amongst the fastest growing major economies.

Domestic Steel Demand

Crude steel production in India grew ~11% over previous year whereas consumption grew ~8% during FY’26.

Improved Sales Realizations

Sales Price/NSR contributed +Rs. 2213 crore to EBITDA movement Q4 FY26 vs Q3 FY26.

Headwinds

Global Economic Slowdown

IMF decreased 2026 growth projections over Jan’26 due to prevailing scenario in the middle east.

Global Steel Production Decline

World crude steel production falling by 2.3% (Jan-Mar CY’26 over CPLY) with China registering degrowth of 4.6%.

Input Price Volatility

Input Price/Cost contributed -Rs. 4245 crore to EBITDA movement FY26 vs FY25.

Risk radar

Global Economic Volatility

Economic conditions affecting demand / supply and prices in the domestic and global markets.

Commodity Price Fluctuations

Prices in the domestic and global markets in which the Company operates.

Regulatory Changes

Changes in Government regulations, tax laws and other statutes, etc.

Management accountability

What management said, and what results must prove

Management accountability

What management said, and what results must prove

Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.

Analyst reading lens
Compare BOTH

Annual (YoY) comparison provides a full-year view of growth and efficiency trends, crucial for a cyclical industry like steel. Quarterly (QoQ) comparison assesses sequential momentum, pricing power, and immediate impact of input costs, critical for spreads.

Sector KPIs management disclosed

Crude Steel Production

FY26: 19.434 MT (+1.2% YoY). Q4 FY26: 5.1 MT (flat YoY, +8.5% QoQ vs Q3 FY26).

Total Sales Volume

FY26: 19.932 MT (+11.2% YoY). Q4 FY26: 5.3 MT (flat YoY, +3.8% QoQ vs Q3 FY26).

EBITDA Margin

FY26: 12.0% (vs 11.6% FY25). Q4 FY26: 15.6% (vs 9.7% Q3 FY26, 12.9% Q4 FY25).

EBITDA/ton

FY26: Rs. 6595 (vs Rs. 6574 FY25).

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
Domestic Steel Consumption GrowthIndia's consumption grew ~8% in FY26.Sustained growth in infrastructure and capital goods sectors.
EBITDA Margin TrendFY26 at 12.0%, Q4 FY26 at 15.6%.Ability to maintain or expand margins amidst input cost volatility and pricing pressures.
Debt-Equity Ratio0.37 (Mar'26).Continued deleveraging and efficient capital allocation.
Operational Efficiency MetricsImproved coke rate, BF productivity, specific energy consumption in FY26.Further improvements in techno-economic parameters.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

77Bullish

full bull SMA stack · SMA20 +9.3% / mo · MACD + · near 52W high · sector +2.7pp vs Nifty (3M)

Stock trend: 85
Sector RS: 64
Sector 3M: +1.2% vs Nifty -1.5%

Technical chart

SAILdaily · 1Y · AUTO+26.0%
Latest close ₹196.80 on 2026-09-04
Bar
-0.5%
RSI
67
MACD hist
1.55
52W pos
85%
2026-09-04O ₹197.86H ₹200.10L ₹194.30C ₹196.80Vol 1.9Cr sh
₹138.89₹157.43₹175.98₹194.53₹213.0752H196.802026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Mixed signals

Signals are conflicting — long-term uptrend intact. RSI 67. Wait for confirmation.

  • Price > SMA20 > SMA50 > SMA200 — full bullish stack.
  • SMA20 rising (~8.5% over last month) — short-term momentum positive.
  • RSI(14) at 67 — falling, no extreme reading.
  • MACD above signal but histogram contracting — bullish momentum cooling.
  • 6% off 52W high · 59% above 52W low.

Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.

Nifty 500 leadership

Relative Strength & Trend Stage

86
RS percentile
Stage 2 Uptrend
1M return
+11.5%
3M return
+5.8%
6M return
+28.1%
1Y return
+48.0%
RS 1D
0
RS 20D
+5
Sector rank
#5
Industry rank
#6
Stage evidence
  • Price is 13.8% above the 30-week proxy.
  • The 50-DMA is above the 30-week proxy and its slope is rising +2.4%.
  • Both 3-month and 6-month returns are positive.
50-DMA
price above
200-DMA
price above
Sector
improving
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
264 observations
04 Sept 2026Value 156.31-0.10%
94113133153172Aug 25Dec 25Apr 26Sept 26156
RS vs Nifty 500156

Valuation & score drivers

U-Score 34 · WATCHLIST · pillar breakdown, sector model, fair-value anchor

34U-SCORE
WATCHLIST

Fundamental score breakdown

WATCHLIST
Valuation5/30
Growth5/25
Quality0/20
Balance Sheet9/15
Cash Flow10/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
34

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

34/100 · WATCHLIST

Positive drivers

  • FCF yield is supportive at 13.7%.
  • Piotroski is strong at 8/9.
  • Cash flow contributes 10/10 to the score.

Main drags

  • Fair-value margin of safety is negative at -179.0%.
  • Quality is weaker at 0/20; verify the latest quarterly trend.
  • Valuation is weaker at 5/30; verify the latest quarterly trend.
Sector valuation model

Cyclical valuation: normalized earnings, not just trailing PE

Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.

Cyclical normalized
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
16.8
PB
1.4
EV/EBITDA
5.8
ROE
6.6%
ROCE
7.9%
FCF Yield
13.7%
Debt/Equity
0.5
MoS
-179.0%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE.
Score movement

Stored run vs live recompute

This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.

Stored run: 05 Sept 2026
v4.3-runtime-valuation
Final score
34
Previous: 34
Verdict
WATCHLIST
Previous: WATCHLIST
Margin of safety
-179.0%
Previous: -179.0%

Score history

12 stored score snapshots. Latest stored move: -7 points.

05 Sept 2026
v4.3-runtime-valuation
32
32
41
41
41
41
41
41
41
41
41
34

Factor attribution

No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.

Modelled fair value

Graham Number
₹184.3
-6.8% MoS
Growth-justified P/E
6.8
Growth-justified Value
₹70.52
-179.0% MoS
PEG

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
74Healthy Trust · low confidenceTrust Lite

Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.

Healthy Trust: Claim history is still being built. It ranks around the 75th percentile of the scored universe and 75th percentile within Metals. Main check: financial discipline is weak at 40/100.

Healthy Trust Lite: Promoter holding is 65%. Key concern: ROCE is low at 7.9%.

Computed 05 Sept 2026
management-trust-v1
49 docs text-extracted · 32 concalls text-extracted
Score band
Healthy Trust

Generally investable credibility. Look for weak sub-scores before increasing position size.

Relative rank
75th percentile

overall median 67 · Metals: 75th pctile, median 70 · Mid: 46th pctile, median 76

Evidence depth
Financial-only

49 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Healthy Trust · low confidence
What it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.

Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.

Forensic breakdown

Read low sub-scores as due-diligence warnings, not automatic sell signals.

Promoter
86
strong · holding, pledge, alignment
Cash flow
89
strong · profit to cash conversion
Balance sheet
73
acceptable · leverage and solvency
Discipline
40
weak · capital discipline
Results
80
strong · quarterly consistency

Trust positives

  • Promoter holding is 65%.
  • Promoter pledge is zero.
  • FCF yield is 13.7%.
  • 5 years of positive FCF.

Trust risks

  • ROCE is low at 7.9%.
  • ROE is low at 6.6%.
  • 1 of the latest 4 quarters had PAT decline worse than 25% YoY.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
16.80
P/B
1.35
EV/EBITDA
5.81
Market Cap
81289.00Cr

Profitability

ROE
6.57%
ROCE
7.92%
ROA
3.14%
Dividend Y
1.19%

Growth (CAGR)

Revenue 5Y
10.00%
EPS 5Y
-1.00%
Revenue 3Y
2.00%
EPS 3Y
26.00%

Balance Sheet

Debt/Equity
0.53
Interest Coverage
6.20×
Altman Z
2.52
Book Value
146.00

Cash Flow

FCF Yield
13.70%
FCF Positive Y
5/5
OCF
19039.00 Cr
EPS TTM
10.34

Shareholding

Promoter Hold
65.00%
Promoter Pledge
0.00%
Momentum 52W
85%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
No data

Net Profit

₹ Cr
No data

Return on Equity

%
No data

Peers

Business-comparable names in Metals, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.