Shyam Metalics and Energy (SHYAMMETL) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue grew 23% year-over-year to ₹4,457 crore, with operating EBITDA up 26% and volumes up 24%, reflecting strong execution, diversified business, and consistent profitability since 2005.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY26, with a limited review and unmodified conclusion by statutory auditors.

• CRISIL upgraded the long-term credit rating to AA+ (Stable), citing strong business risk profile, robust liquidity, and prudent capital management.

• The company discontinued the DI Pipe plant project, reallocating capital to higher-value segments and specialty steel.

• Strategic expansions underway in value-added segments, including stainless steel, aluminium foil, and wagon manufacturing.

Financial highlights

• Q2 FY26 consolidated revenue: ₹4,457.02 crore (+23% YoY); EBITDA: ₹609 crore (+26% YoY); PAT: ₹260.45 crore (+20.8% YoY).

• H1 FY26 consolidated revenue: ₹8,876 crore (+22.5% YoY); EBITDA: ₹1,242 crore (+21.8% YoY); PAT: ₹551 crore (+12.1% YoY).

• Gross profit margin at 26.7% in Q2 FY26; operating EBITDA margin at 12.1%; H1 EBITDA margin at 14%.

• Export contribution to revenue at 24% in H1 FY26, with products shipped to 34 countries.

• Basic EPS (consolidated) for Q2 FY26: ₹9.36; H1 FY26: ₹19.81.

Outlook and guidance

• Management expects double-digit top-line growth of 15–20% annually over the next 2–3 years, with margin improvement of 200–300 basis points driven by downstream value addition.

• Targeting ~2.5x revenue and EBITDA growth by FY31E, expecting 15-17% CAGR in revenue and 18-20% CAGR in EBITDA over the next five years without additional capital raise.

• Major CapEx projects, including aluminum and stainless steel expansions, are scheduled for commissioning between FY2026 and FY2028, with full ramp-up expected within 6–12 months post-commissioning.

• Focus on value-added products to comprise 80% of revenue mix, with continued expansion in steel, stainless steel, ferro alloys, and aluminium.

• Post-2027, substantial free cash generation is expected to support further growth plans.