Shyam Metalics and Energy (SHYAMMETL) Q2 25/26 earnings summary

Executive summary

• Achieved 23% revenue and 24% volume growth in Q2 FY26, with strong EBITDA and PAT increases, cash positive operations, and consistent profitability since 2005.

• Strategic focus on value-added offerings, process efficiency, and cost leadership, with expansions in stainless steel, aluminium foil, and wagon manufacturing.

• CRISIL upgraded long-term rating to AA+ (Stable), reaffirmed A1+ short-term rating, reflecting strong business risk profile and prudent capital management.

• Board approved unaudited Q2 and H1 FY26 results, with a limited review and unmodified conclusion by statutory auditors.

• Discontinued DI Pipe plant project to redirect capital toward higher-value segments due to technological shifts and market changes.

Financial highlights

• Q2 FY26 consolidated revenue: ₹4,457.02 crore (up 23% YoY); EBITDA: ₹609 crore (up 26% YoY); PAT: ₹260.45 crore (up 20.8% YoY).

• H1 FY26 consolidated revenue: ₹8,876 crore (up 22.5% YoY); EBITDA: ₹1,242 crore (up 21.8% YoY); PAT: ₹551 crore (up 12.1% YoY).

• Gross profit margin at 26.7% in Q2 FY26; operating EBITDA margin at 12.1%; H1 EBITDA margin at 14%.

• Export contribution to revenue at 24% in H1 FY26, with products shipped to 34 countries.

• Basic EPS (consolidated) for Q2 FY26: ₹9.36; H1 FY26: ₹19.81.

Outlook and guidance

• Targeting 15–20% annual top-line growth for the next 2–3 years, with margin improvement of 200–300 basis points as value-added and downstream products ramp up.

• Aiming for ~2.5x revenue and EBITDA growth by FY31E, with 15–17% CAGR in revenue and 18–20% CAGR in EBITDA over five years, without additional capital raise.

• Revenue from new color-coated and flat product expansions expected to reach ₹4,000–4,500 crore by FY27; stainless steel business targeting ₹1,500–2,000 crore revenue for FY26.

• Major CapEx projects to be fully deployed by March 2027; new investments to enhance margin sustainability and value addition.

• Focus on value-added products to comprise 80% of revenue mix, with continued expansion in steel, stainless steel, ferro alloys, and aluminium.