Shyam Metalics and Energy Limited announced its Q2 FY27 financial results, showcasing a 33.4% year-on-year increase in revenue to INR 5,960 crore. EBITDA also saw a substantial rise of 40.9% year-on-year to INR 857 crore. The company highlighted strong volume growth, driven by its flat steel and stainless steel segments, and detailed ongoing expansion initiatives across various metal sectors as part of its Vision 2031 strategy.
Shyam Metalics Reports Strong Q2 FY27 Performance
Shyam Metalics and Energy Limited has announced its financial results for the second quarter of the financial year 2027 (Q2 FY27), ended September 30, 2026. The company reported a significant 33.4% year-on-year increase in revenue from operations, reaching INR 5,960 crore. This growth was supported by a 26% increase in sales volume. EBITDA for the quarter grew by 40.9% year-on-year to INR 857 crore, with a margin of 14.4%. Operating EBITDA, excluding other income, rose by 52.6% year-on-year to INR 823 crore.
First Half FY27 Highlights
For the first half of FY27, Shyam Metalics recorded total revenues of INR 11,415 crore, an increase of 28.4% year-on-year. EBITDA for the first half grew by 34.4% to INR 1,670 crore. The profit after tax for the first half increased by 56.4% to INR 862 crore. The company also noted a change in its depreciation methodology from the written-down value method to the straight-line method, aligning with industry practices.
Strategic Expansion and Vision 2031
Shyam Metalics continues to focus on its Vision 2031 strategy, aiming to build a leading integrated multi-metal business. Key expansion projects include a planned 1.6 million ton HR mill and a 0.8 million ton specialty bar combo mill auto steel project at Kharagpur. The company is also investing INR 2,700 crore in its Odisha plant for stainless steel expansion, with full downstream processing capability targeted for commissioning by March 2029. Furthermore, a significant development during the quarter was the proposed acquisition of a 51% stake in Alom Solar Private Limited, which holds the Phutamura coal block, to secure long-term captive coal requirements.
Future Outlook and Capital Allocation
The company anticipates significant EBITDA contributions from its stainless steel and SBQ businesses by FY31. Investments are also being made in the aluminum sector to enhance downstream integration. Shyam Metalics is prioritizing sustainable operating performance, efficient project commissioning, and building world-class facilities. The company maintains a disciplined capital allocation strategy, focusing on internal accruals and maintaining prudent leverage. The estimated capex for the ongoing projects is substantial, with a focus on securing critical raw materials and energy sources. The company is targeting an RoE of 16% and RoCE of 24% by 2031.
Source: BSE
