SAIL Targets Aggressive Debt Reduction Amidst ₹1 Trillion Capex for 15 MTPA Expansion.

State-owned steel giant Steel Authority of India Ltd (SAIL) has successfully reduced its debt by approximately 3% year-on-year, or nearly ₹800 crore, bringing the total to ₹29,811 crore in FY25. This achievement is largely attributed to improved market realisations in the January-March quarter, driven by a surge in steel prices.

The company's strategic debt reduction efforts are evident as the debt figure is down by a significant 16% from its peak of ₹35,659 crore recorded in the second half of FY25 (June 30). This deleveraging comes at a crucial time as SAIL gears up for an ambitious capital expenditure (capex) plan of ₹1,20,000 crore.

This massive investment aims to increase SAIL's crude steel production capacity by 15 million tonnes per annum (mtpa), representing a 75% expansion over its current 20 mtpa capacity, with a target completion by FY30.

During a recent earnings call, SAIL's top management expressed their commitment to further decreasing debt "on a month-on-month basis." This will be supported by an anticipated improvement in steel prices from Q1 FY26 onwards, primarily due to the implementation of safeguard duties. Company officials stated that these duties are expected to curb steel imports, thus bolstering domestic prices and profitability.