A Comparative Study on the Financial Performance of Private and Public Sector Steel Companies in India: A Ratio Analysis of Tata Steel Ltd. and SAIL (2021–2025)

Jyoti Ramesh Kohad; Prof. Sidharth Dongre

A Comparative Study on the Financial Performance of Private and Public Sector Steel Companies in India: A Ratio Analysis of Tata Steel Ltd. and SAIL (2021–2025)

Author(s)	Miss Jyoti Ramesh Kohad, Prof. Sidharth Dongre
Country	India
Abstract	Purpose – The steel industry is fundamental to India’s economic development, yet comparative financial analyses of private and public sector steel companies using recent post-pandemic data remain scarce. This paper compares the financial performance of Tata Steel Limited (private sector) and Steel Authority of India Limited (SAIL, public sector) over the five-year period 2021–2025. Methodology – Using secondary data from annual reports, we calculated 14 financial ratios measuring short-term solvency, long-term solvency, operational efficiency, and profitability. Independent samples t-tests were employed to test for statistically significant differences between the two companies, with Cohen’s d effect sizes reported. Findings – Tata Steel demonstrated superior long-term solvency (mean debt-to-equity: 0.866 vs. 0.510, p = 0.012, d = 1.86) and significantly higher operational efficiency across all activity ratios (p < 0.05). However, no statistically significant difference was found in any profitability ratio (e.g., ROCE: 14.34% vs. 11.25%, p = 0.099, d = 0.77; net profit ratio: 4.89% vs. 4.54%, p = 0.233, d = 0.58). Both companies experienced peak performance in FY2022 followed by sharp margin compression due to global steel price volatility and rising input costs. Practical implications – Investors and policymakers should recognize that while Tata Steel is more efficient and less leveraged, the profitability of the two firms is statistically indistinguishable over the study period. SAIL requires improvements in asset utilization and inventory management. Originality/value – This is the first comparative ratio analysis of Tata Steel and SAIL covering the full 2021–2025 period, incorporating statistical significance testing and effect sizes.
Keywords	Financial performance, ratio analysis, steel industry, Tata Steel, SAIL, private vs. public sector, profitability, solvency, India
Field	Business Administration
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-05-09

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A Comparative Study on the Financial Performance of Private and Public Sector Steel Companies in India: A Ratio Analysis of Tata Steel Ltd. and SAIL (2021–2025)

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