SAIL Targets 20 Million Tonnes Sales in FY26 Amid Debt Reduction Push
New Delhi: State-run steel major Steel Authority of India Limited (SAIL) is charting an aggressive growth path, aiming to lift sales to around 20 million tonnes in FY 2025-26, up from 17.9 million tonnes in FY 2024-25, as it strengthens finances and expands market reach.
The company’s strategy hinges on deleveraging, cost discipline and operational efficiencies to improve profitability and free up capital for future expansion. Reducing debt remains a top priority — a move expected to unlock greater flexibility for large capital investments.
During the third-quarter FY26 earnings call, Dr. A.K. Panda, Director (Finance) and Director (Additional Charge of Commercial), highlighted steady progress on this front. SAIL repaid about ₹5,000 crore of debt between April–December 2025, bringing outstanding debt down to ₹24,852 crore by December 31, 2025, with a further ₹2,000-crore reduction in January 2026.
The disciplined deleveraging has lowered financing costs while enabling growth investments. According to the company, improved operational efficiency, inventory liquidation, cost optimisation and treasury management have strengthened financial control.
Financial Prudence powers SAIL’s Growth Ambition; Targets close to 20.0 MT Sales through focused Marketings
Steel Authority of India Limited (SAIL) is charting its growth story with a clear vision: to combine financial prudence with market expansion, while deleveraging to…
— SAIL Rourkela Steel Plant (@sailrsp1) February 12, 2026
On the business front, proactive marketing and outreach to retail and new customer segments boosted sales volumes by 16.3% during April–December FY26. Total sales touched 16.6 million tonnes between April 2025 and January 2026, alongside significant inventory clearance — improving cash flow and reducing working-capital needs.
SAIL is also tightening operational levers to curb costs. Gradual manpower rationalisation is lowering personnel cost per tonne, while increased reliance on renewable energy is helping cut power expenses and align with sustainability commitments.
Outlining the road ahead, Dr. Panda said the company is reinforcing its base while preparing for expansion through debt reduction, efficient inventory management and targeted marketing. With domestic steel demand rising, a strong CAPEX pipeline and focus on green steel, SAIL expects to hit the FY26 sales milestone — and pursue even higher goals in the years ahead.
