SAIL's Strategic Expansion

State-owned steel giant, Steel Authority of India Ltd (SAIL), is setting a bold capex target of Rs 7,500 crore for FY26, marking a 25% increase from the previous fiscal year. This investment is aimed at expanding plant capacities across its integrated steel plants (ISPs) located in Odisha, Jharkhand, Chhattisgarh, and West Bengal.

Capacity Enhancement Goals

SAIL is on a mission to elevate its total production capacity to 35 million tonnes (MnT) by 2030, up from the current 20 MnT. This ambitious plan involves an investment of nearly Rs 1 lakh crore, focusing on both brownfield and greenfield expansions.

Financial Performance and Outlook

With a consolidated net profit of Rs 885.93 crore in Q1, driven by operational efficiency and robust sales volume growth, SAIL is confident in maintaining this momentum. The company has already surpassed its Q1 capex target, spending Rs 1,642 crore.

Challenges and Opportunities

The domestic steel industry faces a mixed outlook, with global overcapacity and imports pressuring prices. However, India's strong infrastructure and construction demand, projected at 8-9% growth in 2025, present significant opportunities for SAIL.

Future Plans

SAIL is also focusing on reducing its dependence on imported coking coal by leveraging its captive mines, such as the Tasra Coal Mines, to ensure sustainable growth and self-sufficiency in raw materials.