Shyam Metalics reported strong financial results for Q2 & H1 FY26. Revenue grew by 23% in Q2. The company highlighted operational efficiencies and strategic expansions contributing to higher ROCE and lower CAPEX requirements. They also emphasized focus on value-added products and deleveraging the balance sheet to provide flexibility in growth. PAT positive since 2005.
Financial Performance Highlights
Shyam Metalics announced a strong financial performance for the second quarter and first half of fiscal year 2026:
- Q2 FY26:
Revenue: Rs. 4,457 Cr, EBITDA: Rs. 609 Cr, PAT: Rs. 260 Cr.
Revenue growth in Q2 was reported at 23% and volume growth at 24%.
- H1 FY26:
Revenue: Rs. 8,876 Cr, EBITDA: Rs. 1,242 Cr, PAT: Rs. 551 Cr.
Strategic Growth & Expansion
The company is focused on strategically expanding into diversified, value-added product segments. A key focus is on increasing capacity in a cost-effective manner. Some key initiatives:
- Expanding into value-added product segments with higher ROCE and lower CAPEX.
- Continued focus on operational efficiencies to drive profitability.
- Maintaining a conservative capital structure with debt to equity capped at 0.5x.
Capital Expenditure & Projects
Shyam Metalics has committed to funding CAPEX through internal accruals. Capex incurred till Q2 FY26 reached Rs. 7,529 crores, representing 80% of total envisaged CAPEX.
Credit Rating
The company’s long-term credit rating has been upgraded to CRISIL AA+ (Stable), the highest among peer groups, reflecting a strong financial risk profile.
Source: BSE
