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Informist, Tuesday, Jul. 21, 2026

 

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--Shyam Metalics: Metal sector globally volatile due to geopolitical issues
--CONTEXT: Shyam Metalics mgmt's comments in post-earnings analyst call
--Shyam Metalics: Domestic demand continues to be healthy for metal sector
--Shyam Metalics: See operating EBITDA growing significantly in coming qtrs
--Shyam Metalics: Long term EBITDA margin guidance of 14%-15% looks conservative now
--Shyam Metalics: See over INR 95 bln capex for next 3-4 years
--Shyam Metalics: New power plants to be commissioned in Jul-Sept
--Shyam Metalics: To finalise next phase of capex for steel capacity by Q3
--Shyam Metalics: Will maintain inventory at current levels of over 3 months
--Shyam Metalics: See revenues increasing 20% on year in FY27
--Shyam Metalics: No major capacity expansion in specialty alloy planned

 

By Ashutosh Pati and Narayana Krishna

 

MUMBAI/HYDERABAD – Shyam Metalics and Energy Ltd. is positive about its growth trajectory in the coming quarters and years, which will be driven by robust expansion plans for both aluminium and steel products. The company is expecting revenue growth of 20% in the financial year 2026-27 (Apr-Mar), the management told analysts Tuesday in a post-earnings conference call.

 

The company's operating earnings before interest, tax, depreciation, and amortisation are projected to rise "significantly" by around 20-25%, aided by sustainable margin expansion. "...our long-term EBITDA margin aspiration of around 14-15% remains very conservative considering that we are already operating at close to 13-14?ITDA margin with several high-value businesses yet to contribute," the management said. Shyam Metalics reported an operating margin of 14% in the June quarter, up from 13.1% in the year-ago quarter.

 

The company has a slew of expansion projects in the pipeline with almost all expected to be commissioned this year. Shyam Metalics plans to commission some steelmaking and iron-making plants in the initial days of the December quarter and new power plants in the September quarter, the management said.

 

The company plans to invest over INR 95 billion in capital expenditure over the next 4-5 years as part of its FY31 plans. It incurred capital expenditure of INR 5.75 billion during the June quarter. Shyam Metalics also plans to spend capital on the expansion of downstream steel capacity, with the amount to be finalised by the December quarter. However, the company has not planned any major expansion in the specialty alloy operations.

 

"So our development is more on the downstream value additions. We are integrating more on the downstream and high value and B2C (business to consumer). Because here we see better value and more sustainable from the business point of view," the management said.

 

The company aims to maintain inventories at the current level of 2-3 months. "This is the trend of the business because... you are in the monsoon, you have to use the inventory. You have to store the inventory. Now, a lot of geopolitical issues are going on... So nothing can be within the guideline in today's time," the management said, referring to its inventory plans.

 

Domestic demand continues to be "healthy", driven by government-led infrastructure development, railway modernisation, manufacturing expansion, and rising focus on domestic value addition. "These trends continue to provide a strong foundation for growth across metals such as steel, stainless steel, aluminium, and specialty alloy," the management said. While the global metals sector continues to witness volatility due to the fluctuation in prices, trade flows, and geopolitical developments in West Asia, the medium- to long-term outlook remains constructive.

 

The company Monday reported a consolidated net profit of INR 3.45 billion for the June quarter on revenues of INR 54.55 billion. Tuesday, its shares closed at INR 1,062.65 on the National Stock Exchange, up 0.7% from the previous close.  End

 

Edited by Rajeev Pai

 

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