SAIL Delivers Q4 Margin Recovery as Steel Demand Surges, Coking Coal Efficiency Improves

Steel Authority of India Ltd (SAIL) reported a solid Q4 FY25 performance, with EBITDA rising to $454 million, up from $287 million in the previous quarter, driven by higher sales volumes and improved cost efficiency. EBITDA per ton increased to approximately $86, a 34% quarter-on-quarter jump, though it remained 14% below Q4 FY24 levels.

Crude steel output reached 5.1 million tons, up from 4.6 million tons a year earlier, while sales volumes rose to 5.3 million tons. For the full fiscal year, EBITDA came in at $1.41 billion, compared to $1.47 billion in FY24, with annual EBITDA per ton declining from $87 to $79.

India’s finished steel consumption hit 40.5 million tons in Q4, up 12% year-on-year, reinforcing India’s status as the fastest-growing major steel market globally.

On the raw materials side, SAIL improved its blast furnace performance by lowering the average coke rate to 421 kg/thm, down from 440 kg/thm in FY24. Simultaneously, the coal dust injection (CDI) rate rose to 113 kg/thm, indicating a strategic shift toward partial substitution with pulverized coal. These improvements signal greater efficiency in metallurgical coal use, while overall coking coal demand remains strong amid rising steel production.