Steel Authority of India Limited (SAIL) stands as one of India's largest steel producers with Maharatna status and represents a cornerstone of the country's industrial landscape. The company is a state-owned steel producer, with the Government of India holding a 65% majority stake as of June 2024. Founded in 1954 and based in New Delhi, India, SAIL has evolved into a comprehensive steel manufacturing enterprise that plays a vital role in supporting India's infrastructure and industrial development.
SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. The company operates through a robust network that includes:
- Five integrated steel plants: Located at Bhilai, Rourkela, Durgapur, Bokaro, and Burnpur.
- Three special steel plants: Located at Salem, Durgapur, and Bhadravathi.
- A ferro alloy plant: Located in Chandrapur.
The company's operations cover the entire process of steel making, from mining of iron ore and other raw materials to the production and marketing of finished steel. This vertically integrated approach ensures better control over quality and costs while maintaining a steady supply chain for steel production.
SAIL's business model revolves around producing a diverse range of steel products that cater to various sectors, including construction, infrastructure, automotive, railways, and engineering. The company's product portfolio is strategically divided into different categories, with flat products (including hot rolled coils and sheets, cold rolled coils and sheets, plates, and electrical steels) constituting 50.6% of SAIL's overall product mix for fiscal year 2024-25.
SAIL produces high-quality flat and long steel products catering to infrastructure, railways, automotive, defense, and energy sectors, positioning itself as a critical supplier to key industries that drive India's economic growth. The company serves government organizations, PSUs, private companies, distributors, and resellers, maintaining a diverse customer base across multiple sectors.
SAIL's recent financial performance reflects both challenges and resilience in the steel sector. For the quarter ending March 2025 (Q4 FY25), the company saw its revenue increase to ₹29,316.14 Crore and a significant jump in Profit After Tax (PAT) to ₹1,250.98 Crore. The PSU's revenue from operations stood at ₹29,316.14 Crore in Q4 FY25, up 4.9% from ₹27,958.52 Crore in the year-ago period, with revenue growing 19.7% from ₹24,489.91 Crore compared to Q3 FY25.
However, the full-year performance showed mixed results. For the entire year, SAIL's consolidated net profit stood at ₹2,371.82 Crore, down from ₹3,066.67 Crore in FY24, marking a 22.7% decline year-on-year. Sales declined 2.75% to ₹1,02,479.06 Crore in the year ended March 2025, as against ₹1,05,378.33 Crore during the previous year ended March 2024.
Key financial metrics as of recent reports include:
- Steel production: 19.17 MT in FY25, while sales rose to 17.89 MT.
- P/E (TTM) ratio: 22.34 and P/B ratio: 1.02 as of June 2025.
- Return on Equity (ROE): 6.14% for the same period.
- Market capitalization: ₹54,518.80 Crore as of July 1, 2025.
SAIL maintains a consistent dividend policy, rewarding shareholders with regular payouts. The board of directors have recommended a final dividend of ₹1.6 per share, subject to the approval of shareholders for FY25. Last year, Steel Authority of India Ltd gave ₹2.50 for the full year, demonstrating the company's commitment to returning value to shareholders despite operational challenges.
The current dividend yield of Steel Authority of India Ltd (SAIL) is 1.21, providing investors with a steady income stream alongside potential capital appreciation.
Looking ahead, SAIL has ambitious expansion plans aligned with India's growing steel demand. SAIL aims to scale up its overall installed capacity to 35 million tonnes per annum (MTPA) by 2030. The company has provided INR 7,500 Crore capex guidance with targets of 20MT crude steel and 35MT capacity by 2030, indicating significant investment in capacity enhancement and modernization.
According to SAIL chairman and MD, Amarendu Prakash, the company remains focused on innovation, cost optimization, and planned future expansion in line with National Steel Policy, positioning itself to capitalize on India's long-term steel demand growth.
SAIL operates in a competitive environment with both domestic and international challenges. The company faces challenges posed by international tariffs and import pressures, which were present in the last quarter of FY25, but its robust performance reflects its ability to navigate complexities while strengthening its position. The management remains optimistic about the sector's prospects, with supporting government policies auguring well for domestic steel demand.
The company's strategic positioning as a Maharatna PSU provides it with certain advantages in terms of government support and access to resources, while its extensive manufacturing infrastructure and vertical integration offer competitive advantages in the steel sector. As India continues its infrastructure development and industrialization drive, SAIL is well-positioned to benefit from the growing steel demand in the domestic market.
