State-owned steel company SAIL announced its June quarter results just before the stock market closed on Friday. The company reported a net profit of ₹744.5 crore for the first quarter of fiscal year 2026, i.e., between April and June 2025. In the same quarter a year ago, this profit was only ₹81.7 crore. This means the company's profit has increased nearly 9 times.
This figure surprised the market, although it was lower than expected. A CNBC-TV18 poll had expected the company to post a profit of ₹1177 crore. Thus, while the figures are b, they are slightly below analysts' expectations.
Increase in Income, 8 Percent Growth
SAIL's total income has also increased. The company reported that its operating income in this quarter was ₹25921 crore, which was ₹23997 crore a year ago. This represents a year-on-year growth of 8 percent.
The company stated that this growth was due to better demand, increased production, and improved operations. The company is constantly improving its manufacturing process, which is reflected in the results.
Improvement in EBITDA and Margin
EBITDA, i.e., earnings before interest, tax, depreciation, and amortization, has also increased. The company reported that its EBITDA in this quarter was ₹2767 crore, compared to ₹2219 crore in the same quarter last year. This represents an increase of about 24.7 percent in EBITDA.
As for the margin, this figure has also improved. In the April-June quarter last year, the company's margin was 9.2 percent, which has increased to 10.6 percent this time. This indicates an improvement in the company's financial health.
Pressure on Shares, Decline at the End of the Week
While the results showed strength, the company's stock saw pressure in the stock market. SAIL's share closed down 4.24 percent at ₹130.40 on Friday. It remained volatile throughout the day's trading.
Looking at the figures for the past one year, SAIL's stocks have not given investors a significant return. The company's share has registered a total decline of 8.55 percent in one year. Now, the impact of the company's results will be seen in the market on Monday.
Increase in Production and Sales
In a statement issued by SAIL, it was stated that the company has also increased steel production and sales in this quarter. There has been a growth of 5 to 7 percent in production. The company stated that sales have also strengthened due to domestic demand and government infrastructure projects.
Due to these reasons, there has been an improvement in the company's margin and operating level. The management says that preparations are being made to continue the better performance in the coming months as well.
Benefit from Control over Input Costs
The company also stated that it has better managed coal and other input costs. By increasing internal efficiency, the cost has been controlled to a great extent. This has also helped the company in improving its profit and margin.
Experts believe that cost control is a big challenge in heavy industries like SAIL, and this step of the company is commendable.
Demand Remains, Focus on Future Quarters
However, analysts say that the company will have to maintain demand going forward. Currently, many infrastructure projects are underway by the government, in which the consumption of steel is good. Apart from this, the recovery of the real estate and auto sectors is also a positive signal for the steel sector.
SAIL's latest results indicate that the company is now moving towards stable growth. However, it is important to be cautious about foreign demand and fluctuations in international prices.
Investors' Eyes Now on Monday
Now everyone's eyes will be on SAIL's share on Monday. Despite the b jump in profits, the fall on Friday has created some suspense as to how the market will take this report on Monday. At the same time, analysts are waiting to see whether the company will be able to maintain the same strength in the coming quarters or not.
