Shares of Steel Authority of India Ltd (SAIL) fell 2.73% to ₹127.10 in early trade on Monday, even after the Maharatna PSU posted a stellar 8.9x jump in Q1 FY26 net profit. The company reported a net profit of ₹744.58 crore for the April–June 2025 quarter, compared to ₹81.78 crore in the same period last year.
Revenue rose 7.9% YoY to ₹26,083.90 crore, up from ₹24,174.80 crore, while total expenses increased to ₹25,189.19 crore from ₹23,871.60 crore in Q1 FY25.
Despite the strong earnings growth, global brokerage Morgan Stanley maintained its ‘underweight’ rating on the stock and slashed its target price by 20% to ₹105. The downgrade comes as SAIL’s reported EBITDA missed consensus estimates by 16%, and adjusted EBITDA lagged by 22%, signaling margin pressure and cost inefficiencies.
Analysts flagged concerns about operational underperformance and near-term earnings sustainability, leading to a bearish outlook despite the bottom-line beat.
SAIL’s market cap stands at ₹523.87 billion with a P/E ratio of 22.11. The stock has traded in a wide range over the year, between ₹99.15 and ₹156.35.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
