Shyam Metalics and Energy (SHYAMMETL) Investor presentation summary

Business overview and growth trajectory

• Achieved FY26 revenue of ₹18,552 Cr, nearly tripling FY21 levels, with EBITDA of ₹2,537 Cr and PAT of ₹1,061 Cr, maintaining a consistent profit record and strong capital allocation focus.

• Largest coal-based sponge iron player and 6th largest steel producer in India, with 467 MW captive power generation covering 81% of needs.

• Multi-metal, value-added product portfolio spans carbon steel, stainless steel, aluminium, and specialty alloys, with significant expansion in downstream and high-margin products.

• Strategic plant locations near mineral belts and ports minimize logistics costs, supported by captive railway sidings.

• Export presence in 40+ countries, with 10% of FY26 revenue from exports and preferred supplier status to global corporations.

Transformation and expansion strategy

• Transformation from commodity producer to value-added leader, with a shift toward higher-margin products and reduced cyclicality.

• Capacity expansion from 5.71 MTPA in FY21 to 16.78 MTPA in FY26, with further growth planned to 27 MTPA by FY31.

• Major investments in stainless steel, aluminium, cold rolling mill, and wagon manufacturing, with all capex funded by internal accruals and no increase in net debt.

• Ongoing projects include SBQ mill, stainless steel downstream facilities, and aluminium expansion, with a total pending capex of over ₹10,000 Cr.

Financial performance and capital discipline

• FY26 operating EBITDA margin at 12.6%, with strong per-tonne realizations across product lines and a net cash position despite peak capex.

• Gross debt reduced to ₹957 Cr and net debt at -₹1,514 Cr by FY26, with gross/net debt-to-equity ratios at 0.08/-0.57.

• Working capital cycle reduced to 9 days, with ROE at 20% and ROCE at 22% in FY26.

• Cashflow from operations consistently covers capex, supporting growth and business cycles.