Shyam Metalics Q1 profit jumps 21% to ₹351 cr, margin at 14%
Revenue rises 23% to ₹5,455 cr on a 138% surge in pig iron and 52% jump in CR coil. Aluminium foil plant starts commercial production.
— 3 earlier stories on Shyam Metalics And Energy Ltd. →What's new
- Consolidated revenue of ₹5,455 cr, up 23% YoY.
- EBITDA margin improved to 14% from 13% a year ago.
- Aluminium foil plant begins commercial production; management targets 40-50% margin improvement from this business.
Why this matters
The results show steady execution: pig iron volumes surged 138% and CR coil rose 52%, driving top-line growth, while margins held at 14%. The now-operational aluminium foil plant is the next catalyst—prior guidance suggests a 40-50% margin lift from this segment. With a debt-equity ratio of just 0.07, the company has capacity to fund its ₹4,500 cr expansion plan without straining the balance sheet.
What we're watching
- The planned ₹4,500 cr fundraise: dilution or self-funded?
- How quickly the aluminium foil plant ramps to its 40-50% margin potential.
- Any resolution on the ED attachment on a subsidiary flagged in prior coverage.
The full read
Shyam Metalics delivered a strong quarter: revenue of ₹5,455 crore (+23% YoY), EBITDA of ₹765 crore (+32%), and PAT of ₹351 crore (+21%). Pig iron volumes surged 138%; CR coil rose 52%. Sponge iron fell 34% — a mix shift toward higher-value products. The numbers were already known from the board meeting. What's fresh is that the aluminium foil plant is now live. Management expects that segment to lift margins by 40-50% once fully operational. With a debt-equity ratio of just 0.07, the company has room to fund its ₹4,500 crore expansion without stretching the balance sheet. These results are solid and consistent: steady growth in core steel products, with a higher-margin foil business just starting. The next test is plant ramp-up and the shape of the planned fundraise.
Questions answered
- How did Shyam Metalics perform compared to the previous quarter?
- Revenue was ₹5,455 cr in Q1 FY27 versus ₹5,240 cr in Q4 FY26, a sequential growth of 4%. Net profit rose from ₹312 cr to ₹351 cr, up 12.5% quarter-on-quarter.
- What drove the strong growth in pig iron and CR coil?
- Pig iron volumes jumped 138% YoY, likely due to strong demand from foundries and export markets. CR coil volumes grew 52% on the back of auto and consumer durable demand.
- What is the significance of the aluminium foil plant?
- The plant has started commercial production and is part of the Vision 2031 roadmap. Management has previously indicated that this segment could improve operating margins by 40-50% once fully ramped.
- Does this filing contain any new information beyond what was already disclosed?
- No. The analyst rationale notes that the press release only reiterates numbers and commentary from the earlier board meeting outcome. No price-sensitive surprises.
- What is the company's growth strategy and how is it funded?
- Shyam Metalics is executing a self-funded strategy under Vision 2031. However, it has also announced plans to raise up to ₹4,500 cr via QIP/FPO/preferential issue, which could dilute equity.
Shyam Metalics And Energy Ltd.
Latest quarter · Jun 2026
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All notes on SHYAMMETL →- 20 Jul 2026 · 1:33 PM IST Shyam Metalics Q1 profit jumps 21% to ₹351 cr, margin at 14%
- 1d ago Shyam Metalics targets ₹42,500 cr revenue by FY31 under Vision 2031
- 1d ago Shyam Metalics plans ₹4,500 cr fundraise, flags ED attachment on subsidiary
- 5d ago Shyam Metalics opens aluminium foil plant, sees 50% margin lift