CRISIL Ratings Limited has upgraded Shyam Metalics and Energy Limited’s (SMEL) long-term rating to ‘CRISIL AA+/Stable’ from ‘CRISIL AA/Positive’, reaffirming the short-term rating at ‘CRISIL A1+’. This upgrade highlights SMEL’s robust business and financial performance, driven by healthy operations, diversified product portfolio, and strong liquidity. The company’s commitment to efficient capital management and consistent value creation is also recognized.
CRISIL Rating Upgrade
Shyam Metalics and Energy Limited (SMEL) has received a rating upgrade from CRISIL Ratings Limited. The long-term rating has been raised to ‘CRISIL AA+/Stable’ from ‘CRISIL AA/Positive’, while the short-term rating remains at ‘CRISIL A1+’. The announcement was made on November 5, 2025.
Key Drivers for the Upgrade
The rating upgrade reflects several key factors contributing to SMEL’s strong performance:
* Sustained Growth and Diversification: SMEL has demonstrated consistent growth across its steel, ferro alloys, and power businesses, expanding into flat products, pig iron, aluminium, and stainless steel. Ongoing capacity expansion is expected to further strengthen scale and integration.
* Focus on Value-Added Products: The company continues to enhance its share of finished and value-added products through a focus on higher-margin offerings.
* Operational Integration and Efficiency: SMEL’s integrated operations, including captive power generation and waste heat recovery, enable cost efficiency and margin stability. Captive power plants meet nearly 80% of power requirements at a cost of less than ₹3 per unit.
* Strong Financial Profile and Liquidity: SMEL maintains a solid financial foundation with a healthy capital structure and a conservative approach to leverage. Expansion projects are largely funded through internal accruals.
* Robust Profitability and Healthy Metrics: Consistent operational performance and an improving product mix support healthy profitability and cash generation.
* Prudent Capital Management: SMEL follows a disciplined approach to financial planning and capital allocation, maintaining a conservative leverage profile and a strong liquidity position.
Company Commentary
Shyam Metalics & Energy Limited’s Chairman & Managing Director, Mr. Brij Bhushan Agarwal, stated, “We are delighted with CRISIL’s recognition of our financial and operational resilience. The upgrade to ‘CRISIL AA+’ underscores the strength of our business fundamentals, disciplined capital allocation, and consistent value creation for stakeholders.”
Source: BSE
