Shyam Metalics and Energy (SHYAMMETL) Investor update summary

Financial performance and growth

• Achieved FY26 revenue of INR 18,552 crore, up 22% YoY, with PAT crossing INR 1,061 crore for the first time and EBITDA at INR 2,537 crore, up 21% YoY.

• Sales volume grew 26% to 49.46 lakh tons, driven by broad-based segment growth and improved realizations in aluminum foil.

• Maintained strong balance sheet with net cash position of INR 378 crore and gross debt-to-equity at 0.08x.

• Operating cash flow exceeded INR 2,027 crore, with ROCE at 16% and ROE at 13%.

• Net working capital days reduced to nine, reflecting improved efficiency.

Strategic initiatives and CapEx

• Ongoing phased CapEx of INR 2,700 crore targets value-added growth, including a Specialty Bar Quality mill and stainless steel expansion.

• Total CapEx pipeline stands at INR 13,900 crore, with INR 3,285 crore already incurred and the rest to be deployed over 2-3 years.

• Stainless steel capacity to expand from 0.5 to 0.6 million tons, with full downstream integration.

• Aluminum division expanding with battery foil capability to tap into EV and premium packaging demand.

• Wagon manufacturing facility (2,400 wagons) on track for commissioning by September, aligning with government infrastructure push.

Market outlook and demand trends

• Long product demand remains strong, driven by construction and government projects.

• Stainless steel demand in India growing at 13-14% CAGR, with company set to become second largest player post-expansion.

• Aluminum foil exports exceed 60% of production, with robust order book and capacity utilization at 90%.

• Projected to double revenue and EBITDA by FY31, maintaining volume CAGR above 15%.

• No significant concerns on demand absorption due to strategic plant locations and diversified product mix.