SAIL Shares Fall 5% As Q1 Profit, Revenue Drop Sequentially; What Should Investors Do Now?
Shares of Steel Authority of India Ltd (SAIL) fell nearly 5 per cent on Monday after the company reported Q1 results
SAIL
SAIL Share Price: Shares of Steel Authority of India Ltd (SAIL) fell nearly 5 per cent on Monday after the company reported a sequential decline in net profit and revenue for the June quarter of the current financial year (Q1FY26).
The PSU maharatna steel maker's stock fell as much as 4.82 per cent during the day to ₹124.3 per share, the biggest intraday fall since April 7 this year. The stock pared some losses to trade 4 per cent lower at Rs ₹125.4 apiece, compared to a 0.14 per cent decline in Nifty 50 as of 11:50 AM.
Steel Authority of India Ltd reported a net profit of Rs 744.58 crore for the first quarter of FY26, marking a dramatic year-on-year (YoY) jump from Rs 81.78 crore in Q1 FY25. However, the figure represents a 40.5% sequential decline compared to the Rs 1,251 crore net profit posted in Q4 FY25.
What Should Investors Do?
Despite the YoY profit surge, Morgan Stanley has maintained an 'underweight' rating on the PSU stock and slashed its target price by nearly 20% to Rs 105, down from its earlier projection. The revised target represents a 19.84% drop from the stock's closing price on Friday, July 25.
The brokerage cited that SAIL's EBITDA for the quarter was 16% below market consensus, and adjusted EBITDA missed estimates by 22%, reflecting a weaker-than-expected operating performance.
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