S.A.L Steel Q1 FY27 Results (NSE: SALSTEEL)
Signal: Loss reversed
The read
The key inflection is a return to profitability, with EBITDA of ₹13.55 crore and PAT of ₹3.09 crore versus YoY losses of ₹5.32 crore and ₹9.67 crore, supported by gross-margin expansion to 33.7% from 9.1%; however, revenue contracted 31.5% YoY and finance costs rose 26.8%, so the recovery still needs confirmation through sustained volumes and margins.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹87.37 Cr | -31.5% | +630.1% |
| EBIT | ₹10.78 Cr | N/A | |
| Net profit | ₹3.09 Cr | N/A | |
| EPS | ₹0.21 | N/A | |
| EBIT margin | 15.5% |
P&L walk
Standalone revenue fell to ₹87.37 crore, down 31.5% YoY, but gross margin expanded to 33.7% from 9.1% as raw-material cost declined to 75.4% of revenue from 82.8%; EBITDA reached ₹13.55 crore versus a ₹5.32 crore loss, EBIT reached ₹10.78 crore versus an ₹8.01 crore loss, and PAT reached ₹3.09 crore versus a ₹9.67 crore loss.
Key positives
- Gross margin expanded to 33.7% from 9.1% YoY, a 2460bps improvement, while raw-material cost fell to 75.4% of revenue from 82.8%.
- EBITDA turned positive at ₹13.55 crore from a ₹5.32 crore YoY loss, and EBIT turned positive at ₹10.78 crore from an ₹8.01 crore loss.
- PAT recovered to ₹3.09 crore from a ₹9.67 crore YoY loss without support from other income, which was ₹0 crore.
- Employee benefits expense was ₹3.36 crore, up only 1.5% YoY against a 31.5% revenue decline, indicating cost containment.
Key concerns
- Revenue fell to ₹87.37 crore, down 31.5% YoY from ₹127.68 crore, and the filing provides no volume or realisation explanation.
- Finance costs rose 26.8% YoY to ₹6.25 crore, remaining material relative to EBIT of ₹10.78 crore.
- Paid-up shares increased to 14.44 crore from 8.50 crore YoY, making the EPS recovery to ₹0.21 less comparable with the PAT turnaround.
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