Earnings Outlook
Higher volume, selling prices to lift Shyam Metalics Q1 PAT
This story was originally published at 10:39 IST on 17 July 2026
Register to read our real-time news.Informist, Friday, Jul. 17, 2026
By Khushi Singh
MUMBAI - Shyam Metalics and Energy Ltd. is expected to report higher revenue and net profit for the June quarter, driven by strong volume growth and higher average selling prices across key segments, according to brokerages tracking the company.
The metal manufacturer is expected to report a consolidated net profit of INR 3.15 billion for the June quarter, according to the average of estimates from four brokerages. This will be up 8% on year, but down over 1% on quarter. The company's consolidated net sales for the quarter are estimated to be INR 53.3 billion, up 21% on year and up 2% on quarter, according to the estimates.
The highest estimate for the company's net profit is INR 3.54 billion from Nuvama Wealth Management Ltd. and the lowest is INR 2.97 billion from JM Financial Institutional Securities Pvt. Ltd. The highest estimate for the company's net sales is INR 56.13 billion from Ambit Capital Pvt. Ltd. and the lowest is INR 48.44 billion by from JM Financial.
Shyam Metalics' earnings are expected to benefit from growing contribution from downstream businesses, which command higher margins than conventional steel products. The stainless steel segment is expected to be a key contributor to the company's June quarter performance. The company's stainless steel volumes rose 11% on year in April and then rose 40% in June, while average selling prices increased 25% on year in April, 32% in May, and 23% in June. The improvement in price and volumes will support both revenue growth and profitability during the quarter, brokerages said.
The aluminium foil business is also expected to aid earnings growth. Average selling prices in the segment rose 22% on year in April, 35% in May, and 39% in June, while June sales volumes increased nearly 21% from a year earlier.
The pellet segment is expected to remain another growth driver. Pellet sales volumes jumped more than 92% on year in June and 41% on quarter, indicating stronger utilisation and healthy demand.
Shyam Metalics' earnings before interest, tax, depreciation, and amortisation are estimated at INR 6.9 billion for the June quarter, up 21% on year but down 3.8% sequentially, according to the average of estimates. The highest estimate of the company's EBITDA is INR 7.56 billion from Nuvama Wealth Management Ltd. and the lowest is INR 6.44 billion from ICICI Securities Ltd.
A key development during the quarter was the commissioning of phase-II of the cold rolling mill facility at Jamuria in West Bengal. The expansion increased the company's total cold rolling mill capacity to 0.40 million tonnes per year from 0.25 million tonnes earlier. This facility will enable the company to cater to high-growth sectors such as solar energy, automotive, and consumer durables, the company said.
Shyam Metalics will detail its June quarter results Monday. At 1001 IST, shares of Shyam Metalics traded down 2% at INR 1,018.7 apiece on the National Stock Exchange. The shares are up nearly 17% since the company detailed its March quarter earnings on May 11.
Of the three research reports on the company available with Informist, two have a "buy" recommendation and one has a "hold" recommendation. The average target price of the buy calls is INR 1,040 per share, which is just above the current market price. The "hold" recommendation has a target price of INR 1,014.
Following are the Apr-Jun earnings estimates for Shyam Metalics from four brokerage firms in descending order by estimate of net profit, in INR billion:
|
Brokerage |
Net Sales |
Net Profit |
EBITDA |
|
Nuvama Wealth Management Ltd |
53.62 |
3.54 |
7.56 |
|
Ambit Capital Pvt. Ltd. |
56.13 |
3.11 |
6.99 |
|
ICICI Securities Ltd. |
55.03 |
2.99 |
6.44 |
|
JM Financial Institutional Securities Pvt. Ltd. |
48.44 |
2.97 |
6.97 |
|
Average |
53.30 |
3.15 |
6.99 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved
To read more please subscribe
Share this Story:
