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Shyam Metalics Sees Profit Surge Amidst Sales Boom

2 Nov

Summary

Profit nearly doubled due to higher sales and accounting changes.
Net debt increased as capital expenditures rose significantly.
Acquisition of a coal block is expected to enhance earnings by FY31.

Shyam Metalics and Energy Ltd. announced a significant increase in its second-quarter profits, nearly doubling compared to the previous year. This growth was propelled by a 33.4% surge in sales, reaching ₹5,960 crore, and a 26% rise in delivery volumes to 15.49 lakh tonne. The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 52% year-on-year to ₹822.8 crore, with margins expanding to 13.81%.

However, the company's financial standing shifted towards net debt, amounting to ₹192 crore, primarily due to increased capital expenditures. The first half of the financial year 2026 saw capex of ₹1,291 crore, exceeding 50% of the projected full-year spending. This investment is part of Shyam Metalics' ongoing focus on backward integration.

Looking ahead, Shyam Metalics is set to acquire a 51% controlling stake in Alom Solar Pvt Ltd, which has mining rights for the Phutamura coal block. This strategic move is anticipated to contribute an incremental EBITDA of ₹400 crore by FY31, with production expected to commence around July 2027.

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