Synopsis: Steel Authority of India Limited (SAIL) is witnessing a sharp bullish reversal as Emkay Global Financial Services sets a high-conviction “Buy” target of ₹200. Driven by a massive ₹5,000 crore debt reduction and a 163% jump in Q3 net profit, the PSU steel major is outperforming its peers in the ferrous metals sector.
SAIL Share Price Target ₹200: Emkay Global
Shares of Steel Authority of India Limited (SAIL) surged over 3.5% on February 25, 2026, hitting a fresh 52-week high of ₹165.58 on the NSE.
This momentum follows a strategic upgrade from leading brokerages, with Emkay Global highlighting the company’s transition toward a leaner balance sheet and its pivotal role in India’s infrastructure expansion.
The Path to ₹200: Key Catalysts
Emkay Global’s bullish outlook is grounded in SAIL’s aggressive deleveraging and operational efficiency.
The company reduced its debt by around ₹5,000 crore in the first nine months of FY26. This brought its debt-to-equity ratio down to a healthy 0.44.
Primary growth drivers include:
- Record Sales Volume: SAIL achieved its best-ever December sales, with volumes rising 37% year-on-year to 2.1 million tonnes.
- Profitability Surge: For Q3FY26, consolidated net profit skyrocketed 163% to ₹374.03 crore, compared to ₹141.89 crore in the year-ago period.
- Infrastructure Demand: The ongoing brownfield expansion at the Bokaro Steel Plant, aimed at increasing capacity to 7.55 MTPA. This aligns with a projected 8.5% growth in domestic steel consumption.
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Technical Analysis and Market Position
Technically, SAIL has broken out of a long-term resistance zone. The stock is currently trading comfortably above its 50-day and 200-day moving averages, signaling sustained upward momentum.
On February 24 alone, delivery volumes spiked by over 258%, indicating significant institutional accumulation.
While global steel realizations remain volatile due to fluctuations in Chinese output, SAIL’s focus on high-value products. This includes DMR 249A steel sheets for defense initiatives like the INS Vikrant—provides a margin cushion.
Emkay Global suggests that the current valuation discount compared to private-sector peers like JSW Steel makes SAIL an attractive “value-buy” at current levels.
Management Outlook
Chairman Amarendu Prakash recently emphasized that the company’s improved profitability is a result of “higher volumes, operating leverage, and prudent financial management.”
With the World Steel Association forecasting a recovery in global demand for 2025, SAIL is well-positioned to leverage its upgraded product mix and reduced finance costs to hit the ₹200 milestone.
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