Shyam Metalics and Energy (SHYAMMETL) Q1 25/26 earnings summary

Executive summary

• Achieved robust operational and financial performance in Q1 FY26, with 22.4% revenue growth and 31.9% volume growth year-over-year.

• Board approved unaudited standalone and consolidated financial results for Q1 ended June 30, 2025, with a limited review by statutory auditors.

• Ongoing expansion into stainless steel, aluminium, and wagon manufacturing, with operational ramp-up of new blast furnace and color-coated facilities ahead of schedule.

• Continued focus on integration, diversification, and value-added products to drive profitability and mitigate margin volatility.

• Significant progress on capital expenditure projects, with major carbon steel CapEx to be operational by FY26 and stainless steel/aluminum projects on track for FY27.

Financial highlights

• Q1 FY26 consolidated operating revenue reached ₹4,418.84 crore, up 22.4% year-over-year.

• Operating EBITDA for the quarter was ₹633.23 crore, up 17.6% year-over-year, with an EBITDA margin of 13.12%.

• Profit after tax stood at ₹290.67 crore, a 5.3% increase year-over-year, with a PAT margin of 6.6%.

• Finished steel contributed 76% of total revenue; export contribution to revenue at 44% in Q1 FY26.

• Interim dividend of ₹1.80 per share declared, totaling ₹52.24 crore.

Outlook and guidance

• Expect continued strong demand driven by government infrastructure initiatives in railways, roadways, aviation, gas pipelines, and housing.

• Targeting ~2x revenue and ~2.5x EBITDA growth by FY30E, assuming 15-17% CAGR for revenue and 18-20% for EBITDA.

• Annual revenue CAGR target of around 15% maintained.

• Stainless steel and aluminum projects to be commissioned by end of FY27, with meaningful revenue contribution from FY28.

• Focus on value-added products to contribute 80% of revenue mix.