SAIL rallies 3%, hits 18-month high in subdued market; here's why

Steel companies are expected to deliver a robust 8-10% volume CAGR over FY25-28E, driven by strong domestic demand and capex, with safeguard duties supporting profitability, believe analysts.

Steel Authority of India (SAIL) share price today

 

Shares of Steel Authority of India (SAIL) hit an 18-month high at ₹156.50, surging 3 per cent on the BSE in Friday’s intra-day trade in an otherwise subdued market. 

 

The stock price of the public sector undertaking (PSU) company was quoting at its highest level since July 2024. In the past three trading days, the market price of SAIL has rallied by 8 per cent. In the past five weeks, it appreciated by 25 per cent from a level of ₹125.90 on December 12, 2025.

 

At 10:08 AM; SAIL was quoting 2.7 per cent higher at ₹155.70 on the BSE. In comparison, the BSE Sensex was down 0.4 per cent at 82,273. The counter has seen huge trading volumes with a combined 13.44 million equity shares changing hands on the NSE and BSE.

 

 

 

Why has SAIL stock price outperformed the market?

 

The Indian steel industry continues to enjoy robust demand for steel with consumption during the first half (April to September 2025) of the financial year 2025-26 (H1FY26) which has grown by more than 8 per cent over the same period last year. This was, however, sort of overshadowed by the growth in production as crude steel production grew by more than 12 per cent in this half-yearly over the same period last year.

 

The management of SAIL in its September quarter (Q2FY26) earnings conference call said they hope that during the later part of Q3 and Q4, the Indian economic pickup and demand will increase and this will then give a relief on the price front.

 

FIIs up stake in SAIL at multi-quarter high

 

Foreign institutional investors (FIIs) have continued buying equity shares in SAIL from the open market for the fourth straight quarter.

 

FIIs holding in SAIL touched a multi-quarter high at 4.53 per cent in December 2025 quarter, the shareholding pattern data shows. FIIs holding in SAIL at highest level since March 2023, when they held 4.69 per cent stake in the company, data shows. At the end of September 2025 quarter, FIIs holding stood at 3.8 per cent in SAIL.

 

 

Motilal Oswal Financial Services view on Steel sector

 

India’s steel industry is charting a strong growth trajectory, unlike its global peers that remain stuck in low-growth cycles. Motilal Oswal Financial Services (MOFSL) is positive on the Indian steel industry, as companies are expected to deliver a robust 8-10 per cent volume compound annual growth rate (CAGR) over FY25-28E, driven by strong domestic demand and capacity expansions, with safeguard duties supporting profitability. The brokerage firm expects India to remain the fastest-growing steel market globally, providing a multi-year runway for volume growth and profitability across companies.

 

Subdued domestic steel prices have weighed on the sector profitability since FY23. However, MOFSL expects a price recovery, driven by protectionist measures (including the imposition of a 12 per cent safeguard duty), stabilization in global steel prices, and benign raw material costs (coking coal and iron ore). These factors are likely to support a recovery in sector earnings over FY27-28E.

 

For SAIL, the long-term expansion outlook remains positive, while near-term volume constraints and cost pressures remain an overhang, the brokerage firm said.

 

  =============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.