SDG 9: Industry, Innovation and Infrastructure | SDG 8: Decent Work and Economic Growth | SDG 13: Climate Action
Institutions: Ministry of Steel | Steel Authority of India Limited (SAIL)
The state-owned Maharatna, Steel Authority of India Limited (SAIL), announced its H1 FY’26 results, revealing a sharp contradiction between its quarterly profitability and its half-year performance.
Quarterly Profit Plunge: SAIL’s consolidated net profit (PAT) for the July-September quarter (Q2 FY’26) dropped significantly by over 53% year-on-year to ₹418.72 crore (compared to ₹897.15 crore in Q2 FY’25). This drop was driven by pricing pressures and lower steel realizations despite an 8.3% rise in total income.
Half-Year Resilience: Despite the difficult quarter, the company maintained resilient operational metrics for the first half (H1 FY’26):
PAT: H1 PAT increased by 31.8% to ₹1,112 crore (from ₹844 crore in H1 FY’25).
Sales & Revenue: Sales Volume surged 16.7% to 9.46 Million Tonnes (MT), driving Revenue from Operations across ₹52,600 crore.
Debt Reduction: The company aggressively reduced its debt by ₹3,384 crore, bringing the total borrowings down to ₹26,427 crore.
Decarbonization Commitment: To ensure long-term competitiveness in a low-carbon global economy, SAIL affirmed its commitment to the “green steel journey” through hydrogen-based steelmaking trials and Carbon Capture, Utilization, and Storage (CCUS) initiatives. This commitment is vital for overcoming new global trade barriers based on carbon intensity.
The company’s management stated that this performance demonstrates consistency through high capacity utilization and cost optimization efforts amid global steel market volatility. Furthermore, SAIL affirmed its commitment to the “green steel journey” through hydrogen-based steelmaking trials and Carbon Capture, Utilization, and Storage (CCUS) to align with India’s transition to a low-carbon economy.
The sharp drop in quarterly profit, despite half-year growth, exposes the vulnerability of India’s steel sector to global pricing pressures and the imminent threat of the EU’s CBAM. This mandates urgent policy support from the Ministry of Steel and Ministry of Commerce for large-scale CCUS and green hydrogen projects to accelerate deep decarbonization, which is now a prerequisite for sustained profitability and international market access.
What is the Carbon Border Adjustment Mechanism (CBAM)?→ The Carbon Border Adjustment Mechanism (CBAM) is a proposed European Union regulation that will impose a levy (tax) on carbon-intensive imports, such as steel and aluminium, based on the emissions generated during their production. The measure is designed to prevent ‘carbon leakage’ but for Indian steel exporters like SAIL, it poses a direct financial risk of 20-35% tariffs unless they rapidly transition to ‘green steel’ production.
Follow the full news here: SAIL declares Financial results for H1FY’26; delivers strong physical and financial performance
Financial Results for the Quarter /Year Ended | SAIL