Steel Authority of India Ltd (NSE: SAIL) Q1 2026 Earnings Call dated Jul. 28, 2025
Corporate Participants:
Unidentified Speaker
Ashok Kumar Panda — Director, Finance
Analysts:
Unidentified Participant
Ashish Kejriwal — Analyst
Amit Lahoti — Analyst
Prateek Singh — Analyst
Kamlesh Bagmar — Analyst
Sumangal Nevatia — Analyst
Vikash Singh — Analyst
Rahul Gupta — Analyst
Raashi Chopra — Analyst
Tushar Chaudhari — Analyst
Presentation:
operator
The conference is now being recorded. That it Sam. Ram. Sa Sam. That. It. Ladies and gentlemen, good day and welcome to Steel Authority of India Ltd. Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish K. Jirwal from Nuvama Wealth. Thank you. And over to you sir.
Ashish Kejriwal — Analyst
Thank you Amshan. Good afternoon everyone. On behalf of Nuama Wealth Management we welcome you all for Steel authority of India’s first quarter call. We are pleased to host Dr. Ashok Panda of Directory Finance along with his team. Now I would request the management for his opening remark and thereafter we can open the call for Q and A. Thank you. And over to you sir.
Ashok Kumar Panda — Director, Finance
Thank you very much Mr. Asish. Very good afternoon everyone present. Let me welcome all our investors and analysts who are joining this regional concur for the financial results of sale for the year quarter 1 FY 25 26. I’m sure most all of you we have gone through the financial results available on the website of the company and stock exchange results were out on 25th. However, I would briefly apprise you on the same before we move to the question and answer section where we would be happy to receive questions from your side and try to answer those questions.
Let us look at the economic scenario. Let me first apprise you on the economic scenario in which we’ve been operating. The global economy has been battling the inflationary forces for quite some time now. The countermeasures by the economies across the globe led to the decline in GDP growth rates in the countries. Global GDP growth rate is Projected at around 2.4% in 2025 down from nearly 2.9% in 2024. Driven lower by escalating trade tensions, rising protectionism and poverty occupancy. IMF Focus it adds approximately 3.3% and OECD advanced economies like US and Eurozone to grow just at 1.3 to 1.5%.
This slower pace is fueled by tariff, particularly sweeping US trade measures and fragmented supply chains. Global inflation is cooling right now. Headline inflation is expected to fall to around 4.1 to 4.2% in 2025 down from pandemic era peaks. Nonetheless, central banks remain cautious about it. The ECB recently held its benchmark rate at 2% giving lingering trade war risks while US Federal Reserve, despite maintaining a high interest rate, hints at red cuts later in the year if inflation continues to Amid the global headwinds, India continues to outperform. India’s fundamentals remain stronger. Over 80% of Indian CEOs are optimistic about the growth prospects, buoyed by demographic advantages, expanding middle class and a shift towards service led development.
In fiscal year 2024-25, GDP growth reached around 6.4% driven by robust private consumption of growth at 7.3% and healthy activity across agriculture, industry and services central agencies like OECD and UNproject. India’s economy will expand by roughly 6.2 to 6.7% through 2026. Inflation levels are remarkably low. Retail inflation in June stood at this 2.1%, well below the RBI’s full year target of 3.7%. With easing price raises, the RBI is signaling room for interest rate cuts to boost liquidity and investment in the country. The Indian government’s multi pronged strategy aims to counter global disruptions with domestic strength.
CAPEX is the growth engine for our country and we’re expecting CAPEX to increase further. It will result in sustaining long term growth, promoting infrastructure led investment and job creation in the country. Foreign Trade Push the recently signaled India UK FCA in July 24th 24th of July 2025 expected to unlock opportunities for startup companies, manufacturing and services exports without compromising India’s strategic interest on the front of global and domestic vulnerabilities. We still remain with respect to rising protectionism and volatile capital flows due to trade disputes, particularly US tariffs on China and Europe, agricultural and rural inflation spikes post monsoon climate shocks impacting global food supplies and commodity prices.
India should build capabilities in services and high value sectors going forward. When we talk about the world Steel scenario Coming to the steel scenario, the SEM has been much in line with the economic situation. As of mid-2025, the global steel market is growing slowly with total demand expected to rise by just 1.7% globally. According to WSA, advanced economies, particularly Europe, Japan and US are experiencing stagnant or declining demand, mainly due to slower construction activity and higher interest rates. On the contrary, developing economies led by India, Southeast Asia and parts of Africa are driving demand through infrastructure, urbanization and industrialization.
China, which accounts for more than 50% of the global steel production, is facing a story slowdown in domestic demand, largely due to prolonged real estate prices, tight credit conditions and weak exports. In response, Chinese producers are uploading excess steel in international markets at lower prices, leading to global Oversupply and price separation. This has triggered trade tensions and protective measures across several countries including India, UAE countries and us. Now let us look at the Indian steel industry coming to this industry. Domestic steel demand is growing at a rapid pace, over 8% annually. This demand is driven by infrastructure projects, affordable housing, railways, ports, highways, both in automotive, defense and renewable energy sectors.
India’s per capita steel congestion has doubled in the last decade, decreasing more than 120 kilograms. Right now, Dow still below the global average, but it is indicating immense headroom for growth in the future years. However, challenges remain in the form of rising imports, global oversupply and input dependence. Input dependence means it is basically poking coal. Its variability in the price is determining the cost of production out here. Rising imports means steel imports surged over 24% in 2025, especially from China, Vietnam and Japan, creating price pressure on domestic producers. However, imports in this quarter one of this year is under control.
The prices of steel have also been operating in a narrow band, but with its prices stabilizing in the past one or two weeks, right now there are hopes for improvement in next quarters which has traditionally remained the strongest for steel producers. Now let us discuss about the company performance for the quarter Q1 coming to the performance of sale during quarter one FY25 26 the same has been as follows. Salable steel production during the quarter stored at 4.7 million tonnes as against 4.2 million tonnes last year quarter one with a growth of 12%. Sales volume stored at 4.55 million tonnes at against 4 million tonnes in last year quarter one with a growth Of 15%.
In fact this is the best ever first quarter performance in sales in any. On the financial front due to impact of lower prices, turnover could register a lower growth of 8% added by improvement in efficiency parameters. The profit before tax registered a growth of more than 2.7 times to stand at 890 crores this quarter. This will be 326 crores last year quarter one before essential items and after exceptional item it was I think only 14 crores last year Quarter 1 the company continues its drive towards etaferin borrowing as on 30th June 2025 which grew at 28,741 crores as against 29,811 crores as on 31st March 2025.
So we have reduced our borrowings by around 1,100 crores in quarter one this year. So on the front of sustenance and operational efficiencies we have improved the fuel rate Coal to earth metal ratio, increased CDI and reduced coke rate reduced plastic energy consumption this quarter as compared to the previous quarter which has given us advantage in the cost front as well as drilling the steel. Our CO2 emission levels have also improved in this quarter as compared to the previous quarter as compared to quarter one of last year. However, we are still having more targets to improve it further.
We are focusing on zero liquid discharges, liquid restoration of areas and regions and we are focusing also on CSR activities for giving benefit to the stakeholders in the society. So this is nothing about the overall scenario. With these words I hand it back to Mr. Kajalwal for opening the Q and A session. Thank you Mr. Asif.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. We will wait for a moment while the question queue assembles. The first question is from the line of Amit Lahoti from MK Global.
Please go ahead.
Amit Lahoti
Thanks for the opportunity. My question is on cost. So how much was our blended cost of cooking coal in Q1?
Ashok Kumar Panda
Yeah, that is the question. It is rs16,918 per ton.
Amit Lahoti
Okay, so it is flat versus the previous quarter.
Ashok Kumar Panda
Previous quarter was 17,653 on average. So there’s a bit of improvement here around 600700 rupees per ton.
Amit Lahoti
Okay, so we are seeing better coking coal prices as well as the coke rate. So one thing which I wasn’t able to reconcile was the delta in EBITDA per ton and that is due to partially due to higher cost. So if you can help reconcile that which cost items have actually moved up.
Ashok Kumar Panda
Yeah, regarding your talking about EBITDA per TSS which is 6400 now as compared to 6000 rupees in quarter one last year. So when we look at the imported coal price, average coal brand cost 16,918. So quarter one previous year was. Just 1sec 20,000.
Amit Lahoti
So it is a little less than that. There is an improvement in the production volumes in this in this quarter one as compared to previous quarter ones. Yeah, so in the EBITDA numbers. When we talk about EBITDA numbers actually we’ve got advantage in the imported coal and because the royalty is more in the iron ore. So there is a disadvantage in the NSR front there is a disadvantage but EBITDA is also down. EBITDA Proton of Celebration is down because of the stock inflation rates because as you understand because of the reduction in the imported coal rates the cost of production has come down and as a result of that the stock valuation rate of the I concealed items and iron items they have come down drastically.
So it has impacted the P and L account in terms of accounting. That’s the reason why the EBITDA per ton of sellable steel appears to be little less as compared to last year. Quarterback. Okay, and where do we see the guidance for Q2 on coking coal?
Ashok Kumar Panda
Because so far as Q2 guidance is concerned coking coal prices are almost flat as it was in quarter one. We are hoping that it will remain at the same level. A little bit of variation here and there won’t be on the downside could be little up or maybe at the same level. That’s about the coking coal. Now talking about the stock relation impact it is a one time impact which has come in quarter one because of the reduction in the cost of production and then transition from last year to this year. So that impact is unlikely in quarter two.
It is, it will not be there in the quarter two. So quarter two will have advantage with respect to stock pollution rates and the gold prices will remain flat. So that will ease out our cost of production.
Amit Lahoti
Okay, thank you and all the best.
Ashok Kumar Panda
Thank you.
operator
Thank you. The next question is from the line of Amit Dixit from Goldman Sachs. Please go ahead.
Unidentified Speaker
Yeah, hi, good afternoon everyone. Thanks for the opportunity. A couple of questions from my side. The first one is on the capex. So what was the CAPEX in this quarter? How much CAPEX do we expect this year? And if you can also highlight the status of the CAPEX project that we have planned.
Ashok Kumar Panda
Yeah, CapEx first of all last let me tell you CAPEX last year was close to 6000 crores and this year we have kept a target of 7,500 crores throughout the year which is higher target and we are confident that we’ll be able to achieve that. And in quarter one we have already crossed the target which we had given. I’ll just read the number a bit later. The Number is Quarter 1 Target was how much? Quarter 1 We have achieved 1642 crores which is more than the target we had set for the quarter one and then for the entire year the target is as I have told 7,500 crores and we have the plans to achieve it so far as the facilities are concerned as you said.
Actually we’ve got the facilities which are in the pipeline, the facilities which are under execution. From there we are getting the campaigns and sale is doing expansion and to start with an ISCO steel plant. So the majority of the lot of expenditure of capex and ISCO will come from next year. So that means from next year on March the capex figures are still higher than 7,500 crores which is there this year. A bit of that ISCO Capex on account of expansion may surface this year. But most of the capex will be from the ongoing projects which are happening in the various plants.
Unidentified Speaker
Okay, the second question is on the real price revision. So saw some, you know, advantage that we had to the tune of 173 odd crores. Now this pertains to FY24 as highlighted in notes to accounts. So just wanted to understand the current rail price and what was the real price booked in FY24 and how much of advantage can we get further down the year?
Ashok Kumar Panda
Yeah, let me tell you the figure. The figure which is finalized by joint pricing committee was for 2324 and on that basis because we had taken the income at 78,000 rupees so it was little more than that 79,000 something. So it got around 173 course in the accounts that is for 2024. Now 2425 incomes were at 78,000 rupees which was continuing. Now from 2520 onwards the provisional price has been at 74,000 rupees percent because of the softening of imported food prices. So the provisional prices has been kept less. So that’s the reason. That’s the reason why accounting is already done in this manner and going forward we’ll have no issues in this.
Unidentified Speaker
Can we expect some more benefit from this, you know or everything for FY24 has already been taken into account.
Ashok Kumar Panda
More benefit in this sense. This already due to rail price revision. Yeah. Raised price revision benefit will not come in this year further because this is already actualized. It is already actualized and that is why no more areas are expected in this year.
Unidentified Speaker
Got it sir. Thank you so much and all the best.
operator
Thank you. The next question is on the line of Ashish from mlp. Please go ahead.
Unidentified Speaker
Hello.
Ashok Kumar Panda
Hi.
Unidentified Speaker
Am I audible?
Ashok Kumar Panda
Yes sir.
Unidentified Speaker
Yeah. Hi sir, how much is the stock valuation impact this quarter?
Ashok Kumar Panda
Yes, in fact this quarter is around 1050 crores.
Unidentified Speaker
So this is so 1050 crore is a one off which will not repeat next quarter onwards. Is that correct to say it will.
Ashok Kumar Panda
Not repeat this quarter? This is quarter one versus quarter one.
Unidentified Speaker
Okay. Okay. And this was not during Q4.
Ashok Kumar Panda
This was not during last Q4. Last Q4 some amount of population impact is either it is plus or minus, something like that. But mezzanine was not there in Q4. So when we compare this Q1 versus Q4 impact is around 950 crores.
Unidentified Speaker
Okay. And also what will be the impact because of higher royalty on iron ore this quarter?
Ashok Kumar Panda
This quarter is basically because of the IBM Q4. Yeah, yeah. Versus Q4 could be somewhere around. We had say around 250 or 260 crores. Just one sec. 173 crores to be specific.
Unidentified Speaker
And did you get any. Any level?
Ashok Kumar Panda
Sorry, yes, please.
Unidentified Speaker
Did we get any revenue for sale of NMDC Steel? I mean for marketing NMDC Steel? Yeah, last quarter we highlighted we got some revenue.
Ashok Kumar Panda
Yeah. 0.373 million tons we’ve sold actually. And so we have got a revenue of around in this quarter. Around 18. Course. Odd that revenue.
Unidentified Speaker
Okay, so adjusted for that, what would be the realization increase this quarter versus Q4.
Ashok Kumar Panda
In terms of what? Rupees per ton.
Ashok Kumar Panda
Rupees per ton? Yeah. NFR increase rupees per ton for Q1 versus Q4.
Unidentified Speaker
Just one thing. So Q1 versus Q4. Q1 is around, you can say 1600 rupees.
Ashok Kumar Panda
1600.
Unidentified Speaker
Yeah. Okay. And how should we look at the NSRs for average of Q2 versus Q1?
Ashok Kumar Panda
See, see everybody knows about it actually because in the rainy season which is there in Q2, the prices have been compressed. So prices, steel prices are down in July. But as I have already given in my opening remarks that in last one or two weeks it has started improving. There are signs of improvement in the prices in the flat as well as in the long products. So hopefully next month and the next. Next month, Augustine, September, this slide which is taking place in July would be offset. But Q2 price. That is what it looks like at this moment.
Unidentified Speaker
Understood? Understood. Fair enough. Thank you, sir.
operator
Thank you. The next question is from the line of Pratik Singh from Dam Capital Advisors. Please go ahead.
Prateek Singh
Thanks for taking the opportunity. Just following on Ashishin’s question earlier. If you can give us actual number for NSR, both flat and longs for Q1 as well as Q4 in rupees per ton.
Ashok Kumar Panda
Q1 and Q4. So Q1 long is 54,500 and Q4 long is 53,300. In case of flat Q1 is 50,400 and Q4 is 47,300.
Prateek Singh
So sir, if we saw a decent increase in MSRs, I was a bit confused when I look at the slides. So you know the slide where you show an ebitda bridge from Q4 to Q1. Two things caught my eye. One was that the sale price NSR, we are putting a negative number in the sense that it’s impacting the EBITDA negatively when moving from Q4 to Q1, that is one. And second is the raw material usage is also hitting us negatively. What is the raw material usage? I mean I would assume that given that we produce less so usage also would be lower.
Ashok Kumar Panda
No, it is not like that. Actually I can explain you. When we compare you are asking a question about Q1 versus Q4. So when we compare Q1 versus last year Q1 everything appears to be very much positive. But when we compare Q1 versus Q4 then even raw metal issues front there is a negative. Because the technological parameters in quarter one are adverse as compared to quarter four. Because quarter four happens to be the best producing month. And that is why best technological parameters as well as production volumes in quarter one, what happens in all the organizations they go for capital repairs, shutdowns and all that.
So productions are not that consistent as compared to quarter four. And that is the reason why when we regulate and throttle the production then the technology parameters also get impacted. So that is why the raw material exchange is adverse in this quarter one compared to quarter four. However, these are better than quarter one of last year. And source of production volume in this quarter quarter one is less than that of quarter four of last year. But quarter one as compared to quarter one there is an improvement even in the person volumes. So that is why.
Prateek Singh
Pardon the NSR sir, why are we showing an adverse impact of NSR despite an improvement?
Ashok Kumar Panda
No, if you look at that actually that can be split into two categories which we’ll do from the next time. One is. One is. One is NSR impact and the other one is stock related impact. So when you look at the total net impact is 258minus out of that around 950crores. Minus is because of the stock valuation. And you can say. And you can say around 600 to 700 crores plus is because of the sales price increase. So on the sales NSR front there is a positive around 650 to 700 crores. However there is negative on account of stabilization rate impact of around 950 crores crores.
So on the whole it is minus 258 crores.
Prateek Singh
Understood, sir. And sir, can you just tell us what are the spot nfrs right now in Johnson flat?
Ashok Kumar Panda
What are they? Pardon?
Prateek Singh
What are the current nfrs that we are seeing right now? Maybe as of.
Ashok Kumar Panda
Okay, means July expected NSR is somewhere around long is around 51, 500 rupees and flat is around 48,600 rupees.
Prateek Singh
This. Understood sir. And for any guidance as to what kind of full year volumes in terms.
Ashok Kumar Panda
Of sales you would be doing where in quarter two.
Prateek Singh
No, for full year. For 26.
Ashok Kumar Panda
Yeah, for the full year we are stating somewhere around 18.5 million tons.
Prateek Singh
Okay. And just a last, just an addition. This is something which I’ve seen over the past few quarters in the production performance slide. Sir, it would be best that we mention whether it’s for the quarter or for the cumulative till that quarter. Because this time it’s saying F25. So I assume it’s 1Q because it’s easy. But usually in 2Q 3Q also it says F of the 5 that we get confused whether it is for the first 3/4 or only for that quarter. Just a suggestion to make it more clearer in the production performance slide, sir.
Thank you.
Ashok Kumar Panda
Yes, we’ve noted your suggestion. We’ll do the needful.
Ashok Kumar Panda
Thanks a lot.
operator
Thank you. The next question is from the line of Kamlesh Pagmar from Lotus Asset Managers. Please go ahead.
Kamlesh Bagmar
Yeah, thanks for the opportunity, sir. I just wanted to understand more about this stock valuation. I think it is more of a finished course. So is it more that we have valued the inventory at the current prices or what we have done with stock evolution. Because for the first time we are getting in the. We are getting the adjustment from your songs from your side that in sale we are seeing the stock valuation thing.
Ashok Kumar Panda
Now let me answer this question. Actually stock relation is there everywhere. Every time by every company is done by every company is a part of the PNL account. And now in this year because there is a transition from last year to this year year and as all of us know, coal prices are down. So when the coal prices are down in quarter one as compared to average of last year by around 6,000 rupees or whatever it is based on that the cost of production is also quite less. And since cost of production is less and our stock volition is taking place with respect to cost of product, not nsr.
That is why there is a hit on the stock dilution rate in stock accretion and decreasing and this impact is around 1050 crores quarter one versus quarter one and around 950 crores quarter one versus quarter four. So this is a one time true up of the stock valuation rate in the stock acquisition decrease.
Kamlesh Bagmar
It is related to coking coal only.
Ashok Kumar Panda
It is mostly related to the coking coal but the cost is not only decided by coping but it is based on the efficiency and other things. But impact of other items are pretty less as compared to the imported coal.
Kamlesh Bagmar
And secondly on the capex side sir, have we got the approval from the board on the CAPEX side? Because we were telling that we were. We were guiding that there would be new capacity announcements and all that out and we would be ordering or placing the orders for that capacity. So any update on that part?
Ashok Kumar Panda
Yeah, we have Got it approved. 7500 crores for DCS is approved by the board and that is our target. And as you have mentioned about the new capacities we have got the expansion plants in pipeline and the tendering activities are going on in Isco steel plant wherein we are planning to have 4.5 million tons of expansion over there. And as I have already explained that the expenditure in that will generally start from the next year from 2627 because the orders will be placed and then the other activities will start from next year. And that is how the expenditures will start coming from the next year.
Regarding that expansion and back to back we are planning expansion in other plants as well in other facilities. So those things will also follow going forward.
Kamlesh Bagmar
Okay, thanks a lot.
operator
Thank you. The next question is from the line of Sumangal from Kotak securities. Please go ahead.
Sumangal Nevatia
Yes, thank you. Sir, a couple of questions. First is given that the ISCO expansion will kind of pick up pace next year the 7500 crores could go to what number ballpark for FY27.
Ashok Kumar Panda
So actually as we have discussed after 10 ring and autoplacement the education activities start and the expenditure will start from the next year. We are expecting a good jump as compared to 7,500 crores next year onwards. So the actual numbers will come only when the packages are crystallized. But. But then I can expect that a good jump will be there in the next year as compared to this one.
Sumangal Nevatia
Okay. And this score will be roughly 4 million tons new capacity and some debottlenecking, right? Half a million ton debottlenecking.
Ashok Kumar Panda
Yeah.
Sumangal Nevatia
Yeah. So total we are looking at some. I mean for ISCO only what would be the total capex? Somewhere around 30, 35,000 crores.
Ashok Kumar Panda
You can say one part four into 9,730,000 crores.
Sumangal Nevatia
Okay. And sir, we’ll be spending over three years, right? FY 27, 28 and 29.
Ashok Kumar Panda
Actually after order placement. Actually it is around 36 months. That’s the guidance.
Sumangal Nevatia
Got it. Got it. So my second question is with respect to this NMDC contribution. Can you explain how is it getting accounted. Is the volume boosted because of that? Or is it just some line item in revenue and some cost associated with it?
Ashok Kumar Panda
Basically it’s happening as a line item as well as part of the stock as well. So that is how it is appearing right now in the books of accounts. And in the books it is very clear. Once we say it we can understand.
Sumangal Nevatia
Okay. So can you explain what is the line? I mean revenue and cost contribution in one cube for this.
Ashok Kumar Panda
I mean it’s kind of a purchase actually from their side purchase of stock. So purchase in the stock. In this stock you can see. In the purchase in the expenditure you can see. It is the purchase of stock in freight. It is. And it is also there on the revenue side.
Sumangal Nevatia
Okay. And the volume of 4.55 million ton. Does it include anything from NMDC volumes also.
Ashok Kumar Panda
In quarter one?
Sumangal Nevatia
Yeah, yeah.
Ashok Kumar Panda
It includes around 0.37 million tons from there.
Sumangal Nevatia
Okay. All right. And sir, what would be the margin contribution or difference between revenue and cost for this? Yeah. Margin contribution of this NMDC marketing. What we are doing.
Ashok Kumar Panda
No, it is. It is done based on an agreement between them and us. And on that basis we do it.
Sumangal Nevatia
At EBITDA level. It is neutral or is it positive? Is it negative?
Ashok Kumar Panda
It could be. It could be. And details. It could be a little bit positive because. Which will be compositing the efforts being made by marketing team.
Sumangal Nevatia
Okay. Okay. And then sir, for a full year volume.
operator
But I may request you to rejoin the question queue for follow up questions.
Sumangal Nevatia
Just a clarification. Just one last one. For this, the volume guidance of 17 and a half. Are we including NMDC volume in this or not?
Ashok Kumar Panda
Including 18 and a half.
Sumangal Nevatia
Sorry, 18 and a half.
Ashok Kumar Panda
Yeah. That is. That is with respect to sale products.
Sumangal Nevatia
Understood. Okay, I’ll join with you back. Thanks.
Ashok Kumar Panda
Thank you.
operator
Thank you. The next question is from the line of Vikas Singh from ICICI Securities. Please go ahead.
Vikash Singh
Good afternoon, sir. And thank you for the opportunity. So my first question is towards this railway pricing with 74,000 issues that this is finalized right now. What is the cost of basically production cost. We are factoring especially the cooking coal. Since cooking coal has been declining. Is There a risk of this pricing coming down.
Ashok Kumar Panda
See, let me try to clarify this point. Actually this, this cost is done after is prepared after, you know, completion of the quarter and year and then it is also examined by different levels and then it will be done. So the point of 74,000, what you said is basically provisional guidance. It has nothing to do with the actual prices.
Vikash Singh
Notice us. But then there is there because coking coal prices have been come down significantly. Is there any, you know, cost advantage which you need to pass on to the railway in the subsequent quarters?
Ashok Kumar Panda
Yeah, because if you remember, if you go back to one or two years back till the price of rail price, the price of rail was pretty high as compared to what we are looking at right now. So and so this cost is examined by a competent authority at the government level and after thorough investigation, examination records, cost records and everything and accounts, everything, this is finalized. So, so the deflection of imported coal price is coming into the rail price itself after examination by the competent authorities. That is how it is coming. And, and as gold prices softened, so the real prices also softened that you must have already seen because the coal price are at this level.
So things will also be at this level.
Vikash Singh
Notice that sir, in terms of our finish force inventory, how much of inventory we are carrying and is that inventory is at the closing price of 1 cube 11. So there is a risk of markdown of these inventories as well going to.
Ashok Kumar Panda
Yeah, let me answer this question. Actually holding around 1.7 million tons of sellable steel and 1.3 million tons of in process stock. So these two put together steel stock, it is still stock and it is proved up to quarter one cost right now which are almost at a very low level. That’s the reason why the stock release impact has come as already explained. So going forward we do not see any further reduction in this. There could be improvement, but no reduction.
operator
Sorry to interrupt sir, but I may request you to rejoin the question queue for follow up questions. The next question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead.
Rahul Gupta
Hi, thank you for taking my question. So just to understand, you have some finished some inventory of in person stock and you are marketing NMBC steel products. So can you please help us understand how should we look at sales of NNBC steel from your end for rest of the year?
Ashok Kumar Panda
Yeah, that is based on the contract and then their requirement it is being done. So exact numbers it will be very difficult to tell right now because that plant is also sort of ramping up and they have their own Ways of doing it. So as per the requirement and the quantity cannot be proven at this point of time regarding NSL numbers.
Rahul Gupta
Okay, got it. And just to reconfirm, 18 and a half million ton volumes for fiscal 26 is excluding NMDC, right?
Ashok Kumar Panda
That is our target.
Rahul Gupta
Just one more question. Where are we in terms of working coal inventory right now? And where is it coming compared to normal inventory days?
Ashok Kumar Panda
Yeah, let me tell you. Actually coking coal inventory right now is around hovering around anything between 25 to 30 days in the ports and put their own five days in the plants. So those are at the normal levels that we generally expect. We try to maintain those levels of quantified day, something like hovering around that. So right now the stocks are also at those levels.
Rahul Gupta
Okay, got it. Thank you so much.
operator
Thank you. The next question is from the line of Rashi Chopra from Citigroup. Please go ahead.
Raashi Chopra
Thank you.
Raashi Chopra
Just wanted to clarify. The NSR, what is the blended NSR for this quarter?
Ashok Kumar Panda
For this quarter the average NSR is 51,700 rupees per ton.
Raashi Chopra
And what was that in the fourth quarter?
Ashok Kumar Panda
50,100.
Raashi Chopra
And for July.
Ashok Kumar Panda
And for July this figure is expected around for around 50,000 rupees.
Raashi Chopra
Okay, thank you. Then on the coking coal side you mentioned the blended coking costs for 16,900. What is the imported coking call?
Ashok Kumar Panda
This is the imported coking code is 17,600 and average was 15,900.
Raashi Chopra
And the imported coking code was 18 and a half thousand. The fourth quarter, is that correct?
Ashok Kumar Panda
In fourth quarter.
Raashi Chopra
All right. And just last question. On the inventory that number 1.7 million finished and 3 million total. What was it in the March quarter?
Ashok Kumar Panda
In the March quarter it was 1.7 against my 1.4 and 1.3 was 1.3. So basically March quarter was 1.4 plus 1.3 and 30 June is 1.7 plus 1.3.
Raashi Chopra
Okay. And sorry, just one more question. MMDC still you indicated that the revenues were about 1800 crores in this quarter.
Ashok Kumar Panda
Yes.
Raashi Chopra
And the purchase on stock and trade that you mentioned is about 2000 crores in the P L. But.
Ashok Kumar Panda
After purchase something will be lying in the stock.
Raashi Chopra
So is it fair to assume that you’re pretty much breaking even at NMC or there is something positive?
Ashok Kumar Panda
We do not have a negative. We have positive only that.
Raashi Chopra
Can you quantify that.
Ashok Kumar Panda
It’S becoming plus positive? Actually.
Raashi Chopra
Okay, thank you.
Ashok Kumar Panda
Thank you.
operator
Thank you. The next question is from the line of Tushar Chaudhary from Prabhu Das Leeladar Private limited. Please go ahead.
Tushar Chaudhari
Good afternoon sir. Thanks for the opportunity. Sir. This NMDC steel. You said the only revenue and this raw material line gets affected in ppnl. There is nothing in other expenses, right? Or is there anything in other expense expenditure also? Because this quarters other expenditure seems to be on a little bit on higher side. Even if I look at on a per term basis.
Ashok Kumar Panda
Yeah. There is nothing of NSL in the other expenses. Other expenses are higher compared to last bottom one.
Tushar Chaudhari
Royalty. Okay. And the tendering process at ISCO had started last quarter. So how long do you think this will take?
Ashok Kumar Panda
As for the scheduled dates given by them order placements will take place in 2526.
Tushar Chaudhari
So order placement do we expect by third quarter or fourth quarter?
Ashok Kumar Panda
Yeah, end of third quarter and. And fourth. But all of fourth quarter. I mean the schedule is December, January. Like that. Okay.
Tushar Chaudhari
Okay. Thanks a lot.
operator
Thank you. The next question is from the line of Ashish from mlp. Please go ahead.
Ashok Kumar Panda
Let that be the last question please.
operator
Okay sir.
Ashish Kejriwal
Thank you sir. Thank you sir for the opportunity. So one quick clarification on stock revaluation of 950 crore. How much of it would be because of cooking coal and how much of it would be because of finished steel.
Ashok Kumar Panda
I mean it is on finished. It is on steel only finished as well as in process put together. And the reduction is the cost which is given 950 portion adverse impact with respect to quarter four is primarily because of the imported coal price.
Ashish Kejriwal
Okay.
Ashok Kumar Panda
I’m not able to understand.
Ashok Kumar Panda
Because the imported coal price comes around 5,000 to 6,000 rupees per ton. That is why the cost of production is also down in quarter one as compared to quarter four as well as previous quarter one. That is why the stag rate which is equal to the struggling cost. So it has come down and it has got an impact of around 954 suggested to quarter four. So the detection of cost is primarily the imported coal rate. Understood. So as the s. Is it fair to say that as the coke imported coal rates increases then you know the impact to us would be much lower. Because then you will get a revaluation benefit on the upside.
Ashok Kumar Panda
Of course going forward. Suppose the stock is lying over here or similar quantity or less quantity or more quantity. And if coal prices go up then the stock valuation rate will also increase and that will also increase the impact positive impact on this.
Ashish Kejriwal
And if I look at the next quarter versus this quarter. So we will not have this 950 crores of impact then 250 crores of additional royalty or excess royalty because of the iron ore price, IBM price are now more or less flat. So that should not be there and then there will be a negative impact because of realization. Is that the three variables that we should look at for the next quarter.
Ashok Kumar Panda
These are the three basic reasons, basic variables.
Ashish Kejriwal
Okay, fair enough. Okay, thank you.
operator
Thank you ladies and gentlemen. We will take that as our last question. I would now like to hand the conference over to Mr. Ashish Kjwal from Nuama for closing comment.
Ashish Kejriwal
Yeah, thank you Amsin sir, before we ask for the final call from you, just last question from inside one. When we are talking about stock valuation impact definitely that’s there. But in other expenditure also we are seeing it on a much higher side because more or less fourth quarter versus first quarter it was flat despite the fact that volume was lower. So we are more concerned about the higher other expenditure as compared to what it was in the fourth quarter. And secondly in terms of valuation when we are Talking about its 950 crore, assuming that nothing changes in second quarter only price variation is there and cost is not going to change then definitely second quarter versus first quarter.
Do you think that our earnings will be deviated only because of the price change?
Ashok Kumar Panda
Yeah, let me answer one by one. Actually so far as other expenses concerned, other expense within other expense, one of the major components is royalty. Apart from that handling and other expenditures are also there. So in the royalty front, in the royalty front because of the IBM price movement. So these figures also change in quarter one the figures are higher. That is why other issuance figures is higher. But this may vary from quarter to quarter depending on the IBM prices now coming to the stockholders and rates. Because that was a one time kind of a hit in quarter one so that it will not be there in quarter two.
So it will give us a relief in quarter two and going forward. So the variability will be again be primarily driven by the NSR fund. In the NSR fund and we are hopeful that we will be doing our production and technology parameters as per our own guidance. So primarily the NSR should be driving.
Ashish Kejriwal
Understood. So rightly you are pointed that base whatever we have given in first quarter from there to second quarter mean variation is because of the steel price.
Ashok Kumar Panda
Yes.
Ashish Kejriwal
Okay, that’s great sir. So if you can give the final remark then we can close the call.
Ashok Kumar Panda
Yeah, thank you very much. So while we are quite concerned about the global economic scenario and focus, the industry economy has stood out as stronger with strong demand and consumption patterns. The forecast for Indian economy by various agencies have been quite encouraging and economy is expected to grow in the range of 6.3 to 6.7% over next two years which is enough to categorize it as the fastest growing amongst the major economies. The steel demand forecast by WSF for India are also quite promising in excess of 8%. The government focus on infrastructure spending is a big boost to the economy in general and steel industry in particular.
The residential sector is also expected to grow backed by affordable housing projects and urban demand. India’s capital goods sector is also expected to benefit from the momentum in the infrastructure and investment in renewable energy. Automotive and consumer deliverables are expected to maintain healthy growth driven by sustained growth in private consumption. The company remains committed towards improving operational efficiencies and with the market expected to be more good in supportive in coming quarters, I am hopeful that the good times await us and our investors going forward. Thank you very much for this interaction.
Ashish Kejriwal
Thank you on behalf of Nuvama Wealth Management. That concludes this conference. Thank you for joining us and you may now disconnect your lines. It.