Quarterly Financial Results
Shyam Metalics Q1 FY27 Results: Revenue Climbs 23% YoY to ₹5,455 Crore; PAT Rises 21% as Value-Added Strategy Gains Momentum
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- Shyam Metalics & Energy Limited reported a strong Q1 FY27 performance, driven by higher sales volumes, operational efficiency and an increasing contribution from value-added products.
- Revenue from operations grew 23.3% YoY to ₹5,455 crore, EBITDA increased 28.3% YoY to ₹812 crore, while Profit After Tax (PAT) rose 20.6% YoY to ₹351 crore.
- During the quarter, the company also commenced commercial production at its Aluminium Foil Facility in Odisha and reiterated its long-term Vision 2031 strategy focused on capacity expansion, downstream integration and higher-margin products.
PRICE-SENSITIVE TRIGGER
Event: Shyam Metalics & Energy Limited released its Investor Presentation and Unaudited Financial Results for Q1 FY27.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The company reported healthy growth across revenue, EBITDA and PAT while maintaining operational efficiency, progressing strategic capex projects and strengthening its position as an integrated multi-metal producer.
Metrics:
Key Metrics:
- Revenue from Operations: ₹5,455.1 crore (+23.3% YoY, +4.1% QoQ)
- EBITDA: ₹812.4 crore (+28.3% YoY, +7.4% QoQ)
- Operating EBITDA: ₹765.3 crore (+32.0% YoY, +5.3% QoQ)
- Profit Before Tax (PBT): ₹469.2 crore
- Profit After Tax (PAT): ₹350.7 crore (+20.6% YoY, +12.6% QoQ)
- Gross Profit: ₹1,545.6 crore (+25.3% YoY)
- Gross Profit Margin: 28.3%
- EBITDA Margin: 14.9%
- Operating EBITDA Margin: 14.0%
- PAT Margin: 6.4%
- EPS: ₹12.6 per share
Segment Performance:
- Carbon Steel: 34.0% of revenue.
- Speciality Alloys: 20.6%.
- CR Coil & Sheet: 10.1%.
- Sponge Iron: 7.9%.
- Iron Pellets: 7.8%.
- Pig Iron: 7.5%.
- Stainless Steel: 6.5%.
- Aluminium Foil: 5.0%.
- Others: 0.8%.
Highlight:
- Shyam Metalics delivered its highest-ever Q1 revenue of ₹5,455 crore while maintaining EBITDA margin expansion and achieving commercial production at its Aluminium Foil Facility, reinforcing its transition toward a diversified, value-added metals business.
What Happened ?
Shyam Metalics began FY27 with strong operational momentum, supported by disciplined execution, improved product mix and healthy demand across its steel and allied businesses. Revenue, EBITDA and PAT all recorded double-digit year-on-year growth.
During the quarter, the company achieved a significant operational milestone by commencing commercial production at its Aluminium Foil Facility in Odisha.
Management also highlighted that the Aluminium Flat Rolled Products facility remains on track for commissioning during the second quarter, while other major expansion projects continue to progress according to schedule.
key details
Business & Operational Updates:
- Revenue increased 23% YoY to ₹5,455 crore.
- EBITDA expanded faster than revenue, reflecting improved operating leverage.
- PAT grew 21% YoY despite higher depreciation and finance costs.
- Approximately 49% of the planned ₹18,785 crore capital expenditure has been incurred since listing.
- Total capex deployed reached ₹9,205 crore, of which ₹6,286 crore has already been capitalised.
- The company remains net cash positive despite ongoing expansion.
Strategic Progress:
- Combined production capacity stands at 16.93 MTPA.
- Continues shifting from commodity steel towards higher-value products including aluminium foil, CR coils, stainless steel, specialty alloys and railway wagons.
- Maintains AA+ (Stable) CRISIL credit rating.
- Operates 467 MW of captive power generation, reducing production costs.
- Export footprint has expanded to 40 countries.
Long-Term Growth Roadmap:
Management reiterated its Vision 2031, targeting:
- Revenue of ₹42,500+ crore.
- EBITDA of ₹6,200+ crore.
- Production capacity of approximately 27 MTPA.
- Continued net cash-positive balance sheet.
- RoE target of around 20% and RoCE of 22%.
- Approximately ₹9,500 crore of additional capex funded primarily through internal accruals.
Note:
- The investor presentation primarily focuses on financial performance, capacity expansion and long-term strategic execution. No merger, acquisition, dividend declaration or equity fundraising announcement accompanied the quarterly results.
Risk Analysis
Summary:
- Shyam Metalics continues to execute its integrated, value-added growth strategy while maintaining a strong balance sheet. However, earnings remain sensitive to commodity pricing, execution of expansion projects and changes in raw material costs.
Key Risks:
- Steel and ferro alloy prices remain cyclical.
- Large ongoing capex requires timely commissioning and utilisation.
- Global raw material and energy price volatility could affect margins.
- Export demand and international steel pricing may influence profitability.
- Delay in ramp-up of downstream facilities could postpone expected earnings contribution.
Worst Case:
- If commodity prices weaken significantly or new capacities experience commissioning delays, earnings growth and margin expansion could moderate despite higher installed capacity.
Risk Level: Medium
Company Commentary
- Management reaffirmed its strategy of self-funded growth supported by disciplined capital allocation.
- The company continues transitioning towards higher-margin value-added products to reduce cyclicality.
- Growth projects remain on schedule, with nearly half of the planned capex already deployed.
- The balance sheet remains net cash positive despite one of the largest investment programmes in the company’s history.
- Management continues to target significant expansion in revenue, EBITDA and production capacity under its Vision 2031 roadmap.
Official Exchange Filing: Shyam Metalics & Energy Limited
