This article first appeared on GuruFocus.
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Crude Steel Production: Increased by 2% from 14.08 million to 14.35 million tonnes.
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Saleable Steel Growth: Increased by around 4% to 5%.
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Sales Volume: Grew by 16.3%.
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Revenue: Increased by 9% from INR 73,162 crores to INR 79,997 crores.
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Profit After Tax (PAT): Increased by 60% compared to the same period last year.
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Debt Reduction: Reduced by close to INR 5,000 crores in nine months, with an additional reduction of INR 2,000 crores in January.
Release Date: February 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Crude steel production increased by 2% from 14.08 million to 14.35 million tonnes, while saleable steel grew by around 4% to 5%.
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Sales volume rose by 16.3%, leading to a significant reduction in inventory and borrowings.
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Revenue increased by 9% from INR73,162 crores to INR79,997 crores, aligning with the growth in volume.
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PAT (Profit After Tax) increased by 60% compared to the same period last year, highlighting operational efficiency and cost optimization.
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The company reduced its debt by close to INR5,000 crores in the nine-month period, with further reductions in January and expected in February and March.
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The company faced a INR1,000 crores inventory write-off in Q1 due to falling coking coal prices, with only a modest gain in Q3.
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Coking coal prices are on the rise, which is expected to increase production costs in Q4.
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The company has a sizable cost disadvantage compared to peers, which may not narrow significantly until expansion projects are completed.
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Employee costs are expected to rise due to mandatory wage revisions starting in 2027, potentially impacting future profitability.
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Recent accidents at plants, such as the Bhilai Steel Plant, have caused production disruptions, although these have been resolved.
Q: In the first quarter of FY26, there was an INR1,000 crores inventory write-off due to falling coking coal prices. Was there any gain in Q3, and what is expected in Q4? A: In Q3, there was a positive impact of around INR100 crores. For Q4, with rising coal prices, the cost of production is expected to increase, but it will positively impact profitability and margins. The exact figures are uncertain, but a positive impact is anticipated. – Ashok Kumar Panda, Executive Director, Finance Director
Q: Regarding expansion plans, how will the cost disadvantage compared to peers narrow with incremental volumes from projects like IISCO? A: The IISCO project, estimated at INR36,000 crores, is expected to complete in three years. This will significantly boost production volume and margins, enhancing profitability. Current EBITDA per tonne is around INR6,000 to INR7,000, expected to exceed INR10,000 per tonne post-expansion. – Ashok Kumar Panda, Executive Director, Finance Director
