Shyam Metalics and Energy Limited – Investor Presentation Summary

Key Operational Highlights

  • Combined Production Capacity: 18.49 MTPA
  • Total power generation: 467 MW with ~80% of Captive Power in Q2 FY27
  • Renewable Power: 18 MW
  • Cost of in-house power: ₹2.44 Per Unit (significantly less than grid power at ₹5-7 Per Unit)
  • Global presence across 35+ countries

Key drivers of operational performance: Strategic location near mineral belts, captive power advantage, integrated operations from ore to metal, and shift towards higher value-added products.

Segment-wise Performance

Performance by product category for Q2 FY27:

  • Metallics: EBITDA/ton of ₹3,478
  • Carbon Steel: EBITDA/ton of ₹7,446
  • CR Coil/Sheet: EBITDA/ton of ₹8,394
  • Stainless Steel: EBITDA/ton of ₹10,058
  • Speciality Alloys: EBITDA/ton of ₹20,090
  • Aluminium: EBITDA/ton of ₹48,578

Explanation of significant changes in segment performance: The company is shifting its product mix towards higher-value products like stainless steel, aluminium foil, and CR coils/sheets which command significantly higher EBITDA per tonne compared to traditional metallics.

Financial Highlights

Q2 FY27 Performance:

  • Revenue: ₹5,960.2 Cr
  • EBITDA: ₹857.2 Cr
  • PAT: ₹511.0 Cr
  • EPS: ₹18.36
  • Margins: Gross Profit Margin 29.0%, Operating EBITDA Margin 13.8%, PAT Margin 8.6%

YoY/QoQ comparison:

  • Revenue growth: 33.4% YoY, 9.3% QoQ
  • PAT growth: 96.2% YoY, 45.7% QoQ
  • Operating EBITDA growth: 52.6% YoY, 7.5% QoQ

H1 FY27 Performance:

  • Revenue: ₹11,415.3 Cr (28.4% YoY growth)
  • PAT: ₹861.7 Cr (56.4% YoY growth)
  • EPS: ₹30.96

Drivers of financial performance: Higher revenue growth, improved operational efficiencies, and favorable product mix shift towards higher margin products.

Key Risks: Raw material price fluctuations, regulatory changes, and market competition.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specifically quantified in the presentation, but the company mentions global presence across 35+ countries and expanding rapidly.

Balance Sheet Snapshot

As of 30 September 2026:

  • Property, plant and equipment: ₹8,880.5 Cr
  • Capital work-in-progress: ₹3,019.9 Cr
  • Total Assets: ₹23,194.9 Cr
  • Total Equity: ₹12,348.6 Cr
  • Gross Debt: ₹1,331.9 Cr (Current Borrowings ₹1,250.6 Cr + Non-current Borrowings ₹81.3 Cr)
  • Net Debt: Negative (net cash positive)
  • Debt to Equity: Capped at 0.5x

Financial Health Insights: Strong cash flow generation, improved liquidity, negative net debt despite substantial growth capex.

Capex & Cash Flow Health

  • Capital Expenditure: ₹8,800 Cr to be deployed over next 3-4 years
  • Total Capex incurred since listing: ₹9,921 Cr (53% of total planned CAPEX of ₹18,785 Cr)
  • Capex funding: Entirely through internal accruals - no external debt

Investment Rationale: Focus on capacity expansion, technology upgrades, and value-added product mix enhancement.

Strategic & R&D Initiatives

Investments in Innovation:

  • Phutamura coal block acquisition (~170 million tonnes estimated reserves)
  • Aluminium foil expansion and battery foil plant
  • Stainless steel capacity expansion
  • Railway wagon manufacturing
  • Hot Strip Mill (1.58 MTPA)
  • SBQ Mill (0.8 MTPA)
  • Parallel Flange Beams (0.4 MTPA)

Expected impact on growth: Target to achieve 2.3x revenue and 2.8x EBITDA by FY31 compared to current levels.

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through backward integration, and enhancing product portfolio with higher margin value-added products.

Industry Trends & Business Environment

Macro/Industry Trends: Growing demand in infrastructure, construction, and manufacturing sectors; raw material price fluctuations; increasing focus on sustainable operations.

Impact on Company: Benefiting from infrastructure growth in India, leveraging captive power advantage to maintain cost competitiveness, and positioning for export opportunities.

Management Commentary & Growth Outlook

Strategic Outlook: "Building India's Most Diversified & Value-Accretive Metals Platform" with focus on expanding high-value product portfolio, deepening presence in strategic end-markets, and enhancing integration & cost leadership.

FY Guidance: Targeting ~16% EBITDA Margin, ~16% RoE, ~24% RoCE by FY31

Market Share Targets: On course to become a leading steel producer in India (currently among Top 10)

Risks and Opportunities: Highlighted transition to electric vehicle fleet for sustainability, raw material security through coal block, and export market diversification.

ESG Updates

Environmental Initiatives:

  • Large-scale plantation drives
  • Rainwater harvesting systems
  • Promotion of clean energy
  • Renovation of water bodies
  • Electrifying vehicle fleet

Social Initiatives:

  • Skill development programs
  • Healthcare & community well-being initiatives
  • Social infrastructure development
  • CSR spending of ₹9.39 Cr across diverse areas

CSR Framework: SEHAT (Healthcare), UNNATI (Skill Development), VIDYA (Education), DHARA (Sustainability), SAMRIDDHI (Community Infrastructure), PRATIVA (Sports), AASHRAY (Social Relief)