Shyam Metalics and Energy Limited – Investor Presentation Summary

Key Operational Highlights

  • Combined production capacity stands at 18.49 MTPA across multiple metals.
  • Captive power generation reached 467 MW with ~80% utilization in Q2 FY27.
  • Renewable power capacity expanded to 18 MW.
  • Volume sales growth across all product categories with strategic shift towards value-added products.
  • Key drivers include operational efficiencies, captive power cost advantage (₹2.44/unit vs grid ₹5-7/unit), and backward integration.

Segment-wise Performance

  • Metallics Segment: Includes iron pellets, sponge iron, and pig iron. Q2 FY27 EBITDA/ton of ₹3,478.
  • Carbon Steel Segment: Includes billets and long steel products. Q2 FY27 EBITDA/ton of ₹7,446.
  • CR Coil/Sheet Segment: Q2 FY27 EBITDA/ton of ₹8,394.
  • Stainless Steel Segment: Q2 FY27 EBITDA/ton of ₹10,058.
  • Speciality Alloys Segment: Q2 FY27 EBITDA/ton of ₹20,090.
  • Aluminium Segment: Q2 FY27 EBITDA/ton of ₹48,578.
  • Significant growth in stainless steel and aluminium segments driven by export demand and higher-value product mix.

Financial Highlights

Q2 FY27 Performance:

  • Revenue: ₹5,960.2 crore (33.4% YoY growth)
  • EBITDA: ₹857.2 crore (40.9% YoY growth)
  • PAT: ₹511.0 crore (96.2% YoY growth)
  • EPS: ₹18.36
  • EBITDA Margin: 13.8%
  • PAT Margin: 8.6%

H1 FY27 Performance:

  • Revenue: ₹11,415.3 crore (28.4% YoY growth)
  • EBITDA: ₹1,669.5 crore (34.4% YoY growth)
  • PAT: ₹861.7 crore (56.4% YoY growth)
  • EPS: ₹30.96

Drivers of financial performance: Higher revenue growth, operational efficiencies, lower power costs through captive generation, and improved product mix towards value-added segments.

Geographical Revenue Split

  • Domestic vs Export Revenue: Not explicitly quantified in presentation.
  • Global presence across 35+ countries with expanding export footprint.
  • Aluminium foil division exports more than 60% of production.

Balance Sheet Snapshot (as of 30 September 2026)

  • Total Assets: ₹23,194.9 crore
  • Property, plant and equipment: ₹8,880.5 crore
  • Capital work-in-progress: ₹3,019.9 crore
  • Inventories: ₹5,287.2 crore
  • Total Equity: ₹12,348.6 crore
  • Net Debt: Negative net debt position maintained
  • Debt to Equity: Capped at 0.5x
  • Financial Health: Strong cash flow generation, improved liquidity, and self-funded growth model.

Capex & Cash Flow Health

  • Total Capex incurred since listing: ₹9,921 crore (53% of planned ₹18,785 crore)
  • Ongoing Capex: ₹8,863 crore pending out of total planned ₹13,145 crore
  • Capital Expenditure: ₹8,800 crore to be deployed over next 3-4 years, funded by internal accruals
  • Free Cash Flow: Strong operational cash flow generation supporting expansion
  • Investment Rationale: Focus on capacity expansion, technology upgrades, and value-added product mix

Strategic & R&D Initiatives

  • Phutamura Coal Block: Acquired 51% control through Alom Solar Private Limited, ~170 million tonnes estimated reserves, production expected July 2027.
  • Aluminium Expansion: Greenfield expansion with ₹550 crore capex, battery foil plant development.
  • Stainless Steel Expansion: Significant capacity increase from 0.27 MTPA to 1.60 MTPA planned.
  • Wagon Manufacturing: New division with 4,800 units capacity.
  • Solar Power Expansion: 87 MW solar plant expansion planned.
  • Expected impact: Revenue target of 2.3x growth and EBITDA target of 2.8x growth by FY31.

Industry Trends & Business Environment

  • Macro/Industry Trends: Growing demand for value-added steel products, export opportunities in aluminium foil, government infrastructure spending.
  • Impact on Company: Benefiting from integrated operations, captive power cost advantage, and strategic location near mineral belts and ports.

Management Commentary & Growth Outlook

  • Strategic Outlook: Building India's most diversified and value-accretive metals platform through capacity expansion, product mix enhancement, and operational excellence.
  • FY31 Guidance: Target ~16% EBITDA margin, ~24% RoCE, ~16% RoE, and negative net debt despite substantial growth capex.
  • Market Share Targets: Aiming to emerge as leading steel producer in India through rapid scaling.
  • Risks and Opportunities: Raw material price fluctuations, regulatory changes, and global market dynamics highlighted as key considerations.

ESG Updates

  • Environmental: Large-scale plantation drives, rainwater harvesting, renewable energy transition, electric vehicle fleet implementation.
  • Social: CSR initiatives amounting to ₹9.39 crore across healthcare, education, skill development, and rural infrastructure.
  • Governance: Strong independent board structure with experienced professionals from diversified fields.