Synopsis:
The Steel Ministry’s Rs 400 plus crore investment in a Steel Plant is expected to expand its capacity, modernize facilities, and improve operational efficiency, along with strengthening the competitiveness and support in India’s growing steel demand and domestic production goals.
On Wednesday, the shares of one of the largest steel-making companies in India and one of country’s Maharatna Central Public Sector Enterprises, following the announcement of a Rs 400 plus crore investment by the Steel Ministry, strengthening the company’s competitiveness and supporting India’s growing steel demand and domestic steel production goals.
With a market cap of Rs 56,650 Cr Steel Authority of India Ltd saw its stock hit an intra day high of Rs 138.3, which is a 4.5 percent rise from the previous close of Rs 132.25.
What’s the News?
On Wednesday as the trading session started, NSE saw Steel Authority of India Ltd stocks go up by 4.5 percent around 9:30 AM. This is because the Steel Minister has decided to invest over Rs 400 crore in SAIL’s Salem Steel Plant, marking a significant step toward strengthening the country’s steel production capabilities. This capital infusion is expected to expand the plant’s capacity, enhance operational efficiency, and even support the modernization of this facility.
Over the past few years SAIL’s overall asset base had seen a moderation, but the continued rise in fixed assets from the past few weeks reflects upon the ongoing efforts to upgrade production infrastructure. The investment is likely to boost output and improve competitiveness.
Last week around the same time, the Union Steel Minister HD Kumaraswamy had even announced a 9.8 MTPA expansion for SAIL’s Rourkela Steel Plant, along with inaugurating a 1 MTPA slab caster and even inspecting progress at the new facilities for new pellet plant and coke oven battery.
Aligned with SAIL’s strategy to strengthen its market position and support India’s growing steel demand, these initiatives are in line with PM Modi’s 300 MT steel vision, along with modernized facilities, that would boost the production in order to enhance steel supplies for defence, oil and gas, and automobile sectors, which would position the company for stronger long-term growth.
Financial Overview
In the latest quarter Q2FY26, the company witnessed a revenue of Rs 26,704 Cr, 8 percent YoY growth from Rs 24675 Cr of Q2FY25 and a 3 percent QoQ growth from Rs 25,922 Cr of Q1FY26. While the Net profits in Q2FY26 dipped by 53.2 percent (YoY)to Rs 419 Cr from Rs 897 Cr of Q2FY25, and a 43.7(QoQ) percent fall from Q1FY26’s Rs 745 Cr. Apart from that, the company also has a healthy dividend amount ratio of 27.9 percent, even though the company has its 3 year Profit CAGR at minus 41 percent.
Established in 1973, The Steel Authority of India Limited (SAIL) is a Maharatna company under the Central Public Sector Enterprises (CPSEs). Being one of India’s largest steel producers, it has five integrated steel plants and three special steel plants that are strategically located in eastern and central India. The company manufactures and sells a wide range of steel products, and caters to various industries across the country.
Written by Adithya Menon
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