Archive · 28 Jul 2025
SAIL's Expansion Delayed to FY27 Amid Tendering Issues
SAIL, a big steel company, is putting off its plan to spend a lot of money to build more steel factories.
They need more time to get everything sorted out financially.
They are also spending more money this year than they did last year.
They are aiming to build more factories by 2030.
The company did pay off some debt.
The price of steel has been changing a little bit.
SAIL is delaying its ₹36,000 crore expansion plan to FY27.
Financial closure on tenders is expected in late FY26 or early FY27.
Capex for the current fiscal is expected to be ₹7,500 crore.
SAIL aims to add 4.5 mtpa capacity at IISCO, with expansion by FY30.
The company reduced borrowings by ₹1,100 crore in Q1FY26, but debt remains high.
- Who
- Steel Authority of India Limited (SAIL).
- What
- SAIL is delaying its ₹36,000 crore expansion plan.
- When
- Expansion is now planned from FY27 onwards; with tendering expected in late FY26 or early FY27.
- Where
- IISCO Steel Plant.
- Why
- Due to delays in tendering and financial closure.
Steel Price Concerns
Positive Demand Forecast
Steel Prices
Steel Price Concerns
Net sales realization (NSR) expected to dip in Q2.
Positive Demand Forecast
Hopes for improvement in steel prices in the next quarters.
- Expansion Cost
- ₹36,000 crore
- Expansion Capacity
- 4.5 mtpa
- Capex FY26
- ₹7,500 crore
- Debt Reduction (Q1FY26)
- ₹1,100 crore
- Full Year Sales Target
- 18.5 million tonnes