Shares of Steel Authority of India Ltd (SAIL) fell more than 2% to ₹137 on Wednesday, October 30, after the steel major reported a sharp slump in profitability for the quarter ended September 2025 (Q2 FY26). The stock slipped from its previous close of ₹140.55 on the NSE.
The company posted a 49% year-on-year (YoY) decline in consolidated net profit at ₹427 crore, down from ₹834 crore in the same quarter last year. Sequentially too, profit dropped 38% from ₹685 crore in Q1 FY26, reflecting margin pressures and higher costs.
Revenue from operations, however, increased 3% QoQ to ₹26,704 crore, compared to ₹25,922 crore in the previous quarter, indicating firm demand trends. But profitability remained under pressure as EBITDA slipped 8.7% to ₹2,528 crore versus ₹2,769 crore in Q1, while EBITDA margin contracted to 9.5% from 10.7%.
The sharp earnings contraction weighed on investor sentiment as the street assessed the near-term demand and cost dynamics for the steel industry. Analysts note that while domestic steel demand remains robust, pricing pressures and elevated input costs have weighed on margins across the sector.
Shares of SAIL have gained 21.08% over the last six months and 18.66% in one year, but the latest quarterly numbers prompted caution among investors in today’s session.
Going ahead, the company’s focus on improving margins, controlling costs, and leveraging steady domestic steel demand will be key variables to watch. Market participants will also track pricing trends and China-related developments in the global steel ecosystem for near-term cues.
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