Company Update : SAIL by Motilal Oswal Financial Services Ltd
Weak sales volume dents earnings
* In 1QFY26, SAIL received a one-time revenue gain of INR1.7b related to rail price revisions for FY24. For a like-for-like comparison, we have adjusted its 1QFY26 financials by excluding this one-time gain.
* SAIL reported revenue of INR258b (+7% YoY and -12% QoQ) against our estimate of INR276b, primarily driven by a decline in volumes during the quarter.
* Crude steel production stood at 4.85mt (+4% YoY and -5% QoQ), while sales volume stood at 4.55mt (+14% YoY and -15% QoQ) in 1QFY26. The ASP for the quarter stood at INR56,600/t (-5% YoY and +3% QoQ).
* EBITDA stood at INR26b (+17% YoY and -26% QoQ) against our estimate of INR33.4b during the quarter. EBITDA/t stood at INR5,704 (vs. our est. of INR6,967/t), marking a 3% YoY rise but 12% QoQ decline, led by lower volumes.
* Adj PAT came in at INR5.7b (vs our est. INR11.5b), marking a 78% YoY rise but 55% QoQ decline in 1QFY26.
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