THEBUSINESSBYTES BUREAU
KOLKATA, OCTOBER 31, 2026
Shyam Metalics and Energy Ltd on Saturday reported a robust 96.2 per cent
year-on-year jump in consolidated net profit to Rs 511 crore for the September
quarter of FY27, riding on strong sales volumes, improved realisations and
operational efficiencies.
The company had posted a net profit of Rs 261 crore in the corresponding
quarter of the previous fiscal.
Consolidated revenue from operations rose 33.4 per cent to Rs 5,960 crore
during the July-September quarter, compared with Rs 4,467 crore a year ago,
while EBITDA increased 40.9 per cent to Rs 857 crore from Rs 609 crore.
Operating EBITDA registered an even sharper growth of 52.6 per cent to Rs
823 crore, against Rs 539 crore in the year-ago period, reflecting improved
operating performance. EBITDA margin expanded by 80 basis points to 14.4 per
cent, while operating EBITDA margin improved by 170 basis points to 13.8 per
cent.
The company's total sales volume increased 26 per cent year-on-year to
15.49 lakh tonnes during the quarter, supported by strong growth across key
product categories.
Sales of metallics, comprising iron pellets, sponge iron and pig iron,
surged 39.2 per cent to 9.43 lakh tonnes. Carbon steel flat-product volumes
more than doubled to 81,493 tonnes, registering a growth of 109.7 per cent,
while stainless steel sales rose 20.7 per cent to 29,847 tonnes.
Realisation gains also supported the performance, with per-tonne
realisations of stainless steel rising 35.2 per cent year-on-year, aluminium
27.7 per cent, speciality alloys 18.4 per cent and carbon steel flat products
16.4 per cent.
For the first half of FY27, the company's consolidated revenue grew 28.4
per cent to Rs 11,415 crore, while EBITDA increased 34.4 per cent to Rs 1,670
crore. Net profit for the six-month period rose 56.4 per cent to Rs 862 crore,
compared with Rs 551 crore in the corresponding period last fiscal.
In a significant move towards strengthening backward integration, Shyam Metalics
has acquired a 51 per cent controlling stake in Alom Solar Private Ltd for the
Phutamura Coal Block in Raigarh, Chhattisgarh.
The coal block project entails a total capital expenditure of Rs 360
crore, of which Shyam Metalics will contribute approximately Rs 183.6 crore.
The acquisition is expected to secure long-term coal supplies for captive power
generation and steel manufacturing, with the company projecting incremental
EBITDA of around Rs 400 crore by FY31.
Commenting on the performance, Chairman and Managing Director Brij
Bhushan Agarwal said the strong quarterly results were driven by disciplined
execution and the company's integrated business model.
He said the company was making progress towards its Vision 2031, with
investments in downstream capacities and operational integration expected to
support sustained earnings growth.
During the quarter, the company added 18,000 tonnes per annum of aluminium
foil capacity at Sambalpur, taking its total capacity to around 42,000 tonnes
per annum. It also commissioned a 1.5 million tonnes per annum beneficiation
plant at Sambalpur to improve the utilisation of lower-grade ore and ensure
better feedstock quality.
Further strengthening its renewable energy initiatives, the company
commissioned an 8.90 MWp solar power plant at its Jamuria steel mill.
Agarwal said the company was also evaluating the development of a 9
million tonnes per annum integrated steel complex at Chandrapur in Maharashtra
following the signing of a Memorandum of Understanding with the state
government. The project will be pursued subject to feasibility, land
availability and statutory approvals.
He added that the company's expansion programme would be funded primarily through internal accruals, with a focus on maintaining prudent leverage, strengthening cash generation and improving returns on capital.
Shyam Metalics, headquartered in Kolkata, is an integrated metal-producing company with operations across West Bengal, Odisha, Jharkhand and Madhya Pradesh, with a presence in carbon steel, stainless steel, speciality alloys and aluminium products.
