SAIL Share Price: Morgan Stanley’s view on Maharatna PSU post-Q2—Should you buy, sell, or hold?

SAIL Share Price: Investors are closely watching the shares of Steel Authority of India Limited (SAIL) after the company reported a sharp 53.3 per cent decline in net profit for the quarter ended September 2025.

As of 9:30 am, the Maharatna PSU's stock was trading at Rs 138.40, down by 1.49 per cent from the previous close. The stock reached its 52-week high of Rs 143.27 on October 29, 2025, ahead of its Q2 earnings release.

SAIL Q2 result highlights

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SAIL reported a mixed set of results for the second quarter. The company's revenue increased by 8.2 per cent year-on-year (YoY) to Rs 26,704.

EBITDA declined by 13.2 per cent to Rs 2,528 crore, leading to an EBITDA margin contraction to 9.5 per cent from 11.8 per cent in the same period last year. Consequently, net profit fell sharply by 53.3 per cent to Rs 419 crore.

SAIL will hold an analyst and institutional investor meeting today to discuss the financial results of the company.

"It is further informed that an Analyst and Institutional Investor Meet (Group Meet) has been scheduled on October 30, 2025, at 10.00 am, through conference call, to discuss the financial results of the Company for the quarter ended September 30, 2025. The details of the same have been updated on the website of the Company," the company's release read.

Morgan Stanley on SAIL

Morgan Stanley has maintained its 'equalweight' rating on SAIL with a target price of Rs 140, indicating an upside from the current market price (CMP).

According to the brokerage, the company reported sales volume rising 20 per cent YoY to 4.9 million tonnes and revenue coming in 8 per cent above estimates.

EBITDA was 35 per cent higher than Morgan Stanley’s forecast, supported by better realisations at € 54,400 per tonne, up 2 per cent sequentially. The company's profit after tax (PAT) stood at Rs 430 crore, significantly above the estimated Rs 120 crore, while EBITDA per tonne was Rs 5,100, versus the expected Rs 3,400.

However, the brokerage noted that the reported profit was impacted by an exceptional loss of Rs 340 crore, which was related to a gratuity liability adjustment.