New Delhi, July 8 -- Domestic steel companies are likely to see their margins increase by around Rs 1,500 per tonne on average in the first quarter of FY27, supported by higher flat steel prices, according to a report by Kotak Institutional Equities.

The report said the rise in margins is mainly due to higher prices of flat steel products during the quarter. However, the gains were partly offset by increased coking coal costs and seasonal weakness in rebar prices.

The report expects steel realisations to rise by around Rs 4,000 per tonne on a sequential basis across the companies under its coverage, driven by price hikes over the past two quarters.

At the same time, input costs are also expected to increase because of higher coking coa...