Steel Authority of India (SAIL IN) Q1FY27 Result Update Higher pricing aids Q1; capex execution remains key ACCUMULATE
Coking coal costs to decline by INR1-1.5k/t QoQ in Q2FY27 SAIL reported a strong operating performance in Q1FY27, aided by higher steel prices despite production disruptions from the advancement of scheduled capital repairs at Bokaro, IISCO and Durgapur. Adjusted NSR increased 10% QoQ to INR 63,833/t, driving EBITDA/t to INR 10,724, the highest since FY22 despite elevated imported coking coal costs. Management maintained FY27 sales volume guidance at 22mt and expects inventory liquidation during H2FY27 to support sales volumes and reduce working capital borrowings. While Q2 NSR are expected to moderate sequentially, with July...