As India accelerates its infrastructure ambitions, its largest public sector steelmaker, Steel Authority of India Limited (SAIL), is ramping up production capacity to meet surging domestic demand. The company has announced a capital expenditure (capex) outlay of ₹7,500 crore for FY26, marking a 25% increase over the previous year’s investment — a decisive move to scale capacity, modernise operations, and align with India’s long-term steel vision.
India is currently experiencing robust growth in infrastructure, construction, and manufacturing, leading to a projected 8–9% increase in domestic steel consumption in 2025–26. Against this backdrop, SAIL’s expansion strategy aims to increase its annual crude steel capacity from approximately 20 million tonnes to 35 million tonnes by 2030, in line with the Government of India’s 300 MTPA target under the National Steel Policy.
SAIL’s Q1 performance further reinforces the momentum. The company reported ₹885.93 crore in net profit and 4.55 million tonnes in sales a 15% year-on-year growth, driven by improved efficiency and steady market demand. It has already utilised ₹1,642 crore of the FY26 capex budget in the first quarter alone.
SAIL’s expansion strategy focuses on key brownfield upgrades rather than new greenfield developments. The company is currently advancing major projects at:
These developments are designed to enhance both volume and product value in construction-grade steels, automotive grades, and structural products.
While the growth outlook remains strong, SAIL faces headwinds from global overcapacity and a potential influx of low-cost imports, particularly from China, Vietnam, and the Middle East. This pressure could impact margins in H2 FY26, especially if infrastructure execution slows or pricing volatility increases.
SAIL is also moving to strengthen supply chain resilience. It has begun tapping its Tasra captive coal mine to reduce reliance on imported coking coal. Parallel efforts are underway to enhance iron ore logistics and reduce input costs through technological upgrades and energy efficiency.
As sustainability becomes a global priority, SAIL is also exploring early adoption of low-carbon steelmaking practices, digital plant operations, and emission tracking — all critical steps for future-proofing exports and aligning with global buyer requirements.
The expansion strategy benefits from alignment with central policy frameworks, including:
Such alignment ensures that capital investments are well-supported by demand visibility and regulatory efficiency.
SAIL’s ₹7,500 crore FY26 capex plan reflects confidence in India’s steel consumption story, backed by strong execution in Q1. While risks remain, particularly in pricing and imports, the company’s multi-plant upgrade strategy and alignment with national goals position it well to meet future demand.
As India builds the next generation of highways, bridges, ports, and metro systems, steel remains at the core. And SAIL appears determined to supply it, efficiently and at scale.
Explore Our Solutions for GCC & Africa
From industrial pipes and structural beams to custom stainless components, Stellanox Steel is your regional stainless steel partner.
🌐 Visit us: https://stellanoxsteel.com
📧 Email: sales@stellanoxsteel.com
📍 HQ: Dubai, United Arab Emirates
August 2025’s tariff hikes force Indian policymakers and steel duties/exporters into a high-stakes realignment. Here’s…
India’s Trade Delegation Heads to Washington as Plans for WTO Retaliatory Tariffs Take Shape Dual…
A Stellanox Steel Insight Report | UAE-Based Global Supplier Trump’s 50% Tariffs Reshape Global Steel…
Introduction Stainless steel round rods are versatile materials used across a wide range of industries,…
Introduction When it comes to high-performance alloys used in extreme conditions, Inconel 718 and Inconel…
Introduction Nickel plating is a critical process used in precision engineering to enhance the durability,…