SAIL Q2FY27 Net Profit Soars 318% to ₹1,750.5 Crore

SAIL shares slid 1.5% in early trade after unveiling a Q2FY27 net profit of ₹1,750.5 crore, up 318% YoY. The lift in earnings was driven by a 4.2% rise in revenue to ₹2,800 crore, while EBITDA margin contracted to 12.3% from 14.6% a year earlier.

According to the company’s FY27 interim report filed with SEBI, net profit surged from ₹418.7 crore in Q2FY26 to ₹1,750.5 crore. EBITDA rose 18.7% YoY, but margin pressure from higher input costs trimmed profitability.

Analysts had pencilled in ₹2,200 crore for the quarter, so SAIL outperformed expectations by ₹449.5 crore. However, the market interpreted the margin squeeze as a warning, pulling the share price down.

The steel sector remains exposed to global demand swings, with China’s construction slowdown weighing on prices. SAIL’s improved output efficiency offsets some of the headwinds, but the drop in margin signals ongoing cost volatility.

The company has not yet issued a Q3FY27 guidance, but it announced a planned capital expenditure of ₹3,200 crore for the next 12 months. Investors will watch the upcoming earnings release on November 15 for further clarity.

In sum, SAIL’s record profit jump showcases operational gains, yet the market’s muted reaction underscores lingering concerns about margin sustainability amid a challenging steel landscape.