Shyam Metalics and Energy (SHYAMMETL) Q3 25/26 earnings summary

Executive summary

• Achieved strong operational and financial performance with 18% revenue and 25% volume growth in Q3 FY26, maintaining positive PAT since inception in 2005.

• Commissioned a 0.45 million ton blast furnace at Kharagpur and approved major expansion projects, including wagon manufacturing, power plant, and hot rolling mill.

• Board approved fresh capital investment of INR 6,660 crore for the next phase of growth, focusing on capacity expansion and value-added products.

• Welcomed Mr. Subrata Bhattacharya as an additional independent director, bringing extensive industry experience.

• Voluntary liquidation of a non-operational Dubai-based subsidiary was approved due to unmaterialized business activities and ongoing costs amid geopolitical uncertainties.

Financial highlights

• Q3 FY26 consolidated revenue reached ₹4,421.46 crore, up 17.7% year-over-year, with EBITDA at ₹538.8 crore (up 6.3% YoY) and PAT at ₹197.51 crore (flat YoY).

• Nine-month consolidated revenue was ₹13,311.85 crore, up 20.9% YoY, with PAT at ₹748.63 crore (up 8.6% YoY).

• EBITDA margin for Q3 FY26 at 12.1%-12.2%; PAT margin at 4.5%.

• Standalone Q3 FY26 revenue: ₹1,757.25 crore; net profit: ₹98.44 crore.

• Consistent growth in sales volumes, with Q3 FY26 up 25% YoY.

Outlook and guidance

• Revenue and EBITDA expected to grow ~2.5x by FY31, targeting 15-17% CAGR for revenue and 18-20% CAGR for EBITDA.

• Projecting 15%-20% annual volume growth over the next 4-5 years, with continued focus on value-added and downstream products.

• No additional capital raising planned; growth to be funded through internal accruals.

• Expecting substantial margin improvement in Q4 and subsequent quarters, with anticipated 10%-20% margin growth due to price increases and new project commissioning.

• Board approved new projects/expansion plans with estimated commissioning between June 2027 and September 2029.