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

Executive summary

• Achieved 22.4% year-on-year revenue growth and 31.9% volume growth in Q1 FY26, driven by operational efficiency, new capacity ramp-ups, and value-added product mix.

• Cash positive in FY25 with Rs. 1,062 crores; PAT positive since 2005.

• 6th largest integrated steel producer and among the largest ferro alloys producers in India.

• Ongoing expansion into stainless steel, aluminium, and wagon manufacturing.

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

Financial highlights

• Q1 FY26 consolidated operating revenue was INR 4,490 crores, up 22.4% year-on-year; consolidated EBITDA at INR 633.23 crores, up 17.6% year-on-year; PAT at INR 291 crores, up 5.3% year-on-year.

• Operating EBITDA margin at 13.12%; PAT margin at 6.6%.

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

• Interim dividend of INR 1.8 per share declared, totaling INR 52.24 crores.

Outlook and guidance

• Most carbon steel CapEx to become operational by FY 2026; stainless steel and aluminum projects on track for FY 2027 commissioning.

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

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

• Margins expected to remain in the 11%-13% EBITDA range for FY 2026.

• Monsoon quarter (Q2) expected to see some pricing pressure, but cost reduction focus to mitigate impact.