Panda focuses on cost optimization and expanding portfolio of special steels
Steel Authority of India Limited (SAIL) has outlined its strategic priorities for FY27, building on the strong momentum of FY26, and progressing with volume expansion plans, which are aligned with the Government’s vision of Viksit Bharat@2047 of 300 million tonne a year industry wide output.
The mill group said it is prioritizing an increase in the share of value‑added and special steel products with sharper focus on customer engagement and cost optimization.
Commenting on the outlook, SAIL Chairman & Managing Director Dr Ashok Kumar Panda said on 8 June, “Our performance in FY26 reflects the combined effect of marketing initiatives, production improvements, efficiency gains and better financial strategies, which have strengthened both the top line and bottom line. The company’s financial health is sound and with strong group synergy, we are well-positioned to achieve our FY27 targets.”
“Going forward, our emphasis will remain on customer focus, cost optimization and expanding our portfolio of special steels to support India’s growing infrastructure and industrial needs. At the same time, we will continue to reduce working capital borrowings, which have already contributed to a significant improvement in profitability,” he said.
Notwithstanding several challenges arising out of emerging global volatility, SAIL delivered a robust EBITDA growth of 11.75% in FY26 over corresponding period last year. The company’s Profit After Tax (PAT) and Profit Before Tax both surged by ~50% and ~ 44% respectively during FY26 while simultaneously reducing debt by Rs.8,148 crore over CPLY.
During FY26, SAIL undertook a series of initiatives that enhanced its competitiveness and resilience. These included expanding retail networks, customer outreach & delivery innovations, export & market diversification, modernizing warehouses, diversifying product offerings, improving techno-economic parameters and brand promotions among others.
Focusing on becoming a more sustainable steelmaker and committing to the environmental goals, the company also achieved best‑ever techno‑economic parameters in areas such as coke rate, fuel rate, blast furnace productivity and specific energy consumption, reflecting continuous operational excellence.
In addition, 28 new products were developed, enlarging SAIL’s product basket and reinforcing its ability to serve diverse customer segments. Together, these measures reinforced the Company’s market position and laid the foundation for sustained growth.
Looking ahead, SAIL said it remains committed to the path of sustainable steelmaking, adopting more environment‑friendly technologies and achieving growth in profitability.
On 15 May, SAIL reported financial results for the year ending 31 March 2026.
Crude steel production grew by 1.4% in FY’26 over CPLY from 19.17 to 19.43 million tonnes (MT);
Sales volume in 2025-26 grew by 11.4% as the company increased market outreach, inventory reduction and improved dispatches – volume was Rs.19.43 million tonnes, up from 17.89 MT a year ago.
Profit After Tax (PAT) soared by ~ 50.5%, highlighting operational efficiency, liquidation of inventory and cost optimization. It was Rs.3,233 crore compared to Rs.2,148 crore in 2024-25.
The 2025-26 revenue from operations was Rs.110,810 crore, up from Rs.102,478 crore in the previous year.
Panda stated, “The growth in sales volumes, coupled with a reduction in inventory and borrowings, has reinforced our profitability, with PBT and PAT registering growth of 44% and 50.5% over the corresponding previous year, respectively.” Fiinews.com
