Key Rating Actions

  • CRISIL Ratings Limited reaffirmed the company's long-term rating at 'CRISIL AA+/Stable'
  • Short-term rating reaffirmed at 'CRISIL A1+'
  • Rated bank debt amount enhanced to ₹4,500 Crore from the previous ₹3,600 Crore
  • ₹50 Crore Commercial Paper programme rating reaffirmed at 'CRISIL A1+'

Rationale for Rating Reaffirmation

The rating reaffirmation is based on:

  • Established market position in the steel sector
  • Strong financial risk profile
  • Healthy operating performance
  • High operational efficiency driven by deeply integrated operations

Key Business Highlights Driving the Rating

Operating Performance & Growth

  • Operating profitability and top-line growth continue to strengthen
  • Supported by higher sales volumes across core product segments
  • Profitability metrics projected to expand further in the upcoming fiscal year

Capacity Expansion & Diversification

  • The group continues to scale its aggregate production capacities
  • Strategic expansion into flat steel, pig iron, stainless steel, and aluminium foils
  • Reinforces product diversification and market reach

Integrated Value Chain & Efficiency

  • Operations cover complete value chain from raw materials to value-added finished products
  • Operational efficiency supported by captive power generation, waste heat recovery plants, coal washeries, and dedicated railway sidings
  • Planned coal block operationalization will further strengthen long-term energy and raw material security

Financial Position

  • Maintains conservative financial structure with strong net worth
  • Significant liquidity surplus
  • Minimal debt reliance leading to low gearing and strong interest coverage

Capital Expenditure Funding

  • Multi-year capital expenditure plans for capacity expansion
  • Funding predominantly through strong annual internal accruals and available cash reserves
  • Ensures debt metrics remain at safe levels

ESG & Sustainability Commitments

  • Advancing environmental goals by increasing renewable energy consumption
  • Maintaining Zero Liquid Discharge (ZLD) operations for full water reuse
  • Adhering to international standards for emissions reporting

Management Commentary

Mr. Brij Bhushan Agarwal, Chairman & Managing Director, stated: "The reaffirmation of our 'CRISIL AA+/Stable' and 'CRISIL A1+' ratings, along with the enhancement of our rated bank facilities, validates the strength of our business strategy, robust balance sheet, and disciplined execution capabilities. Even as we undertake major brownfield capacity expansions to enhance scale and product diversification, our focus remains anchored on prudent capital allocation, maintaining strong liquidity, and creating long-term value for all stakeholders."

Company Background

Shyam Metalics is a leading integrated metal-producing company primarily in the steel industry with operations in West Bengal, Odisha, Jharkhand, and Madhya Pradesh. The company focuses on Long & Flat Steel Products, Ferro Alloys, Aluminium, and Stainless Steel. Listed on exchanges in 2021 with market capitalization of more than ₹35,000 Crore. Headquartered in Kolkata, West Bengal, and among the largest producers of ferro alloys in India by installed capacity.

Operational Capacity

  • Aggregate installed metal capacity: 16.93 MTPA across the steel value chain
  • Aggregated installed capacity of captive power plants: 467 MW

Corporate Identification

  • GSTIN: 19AAHCS5842A1ZE