SHYAMMETL: Shyam Metalics And Energy Limited has informed the Exchange about General Updates regarding Fresh Capex of ₹ 2700 Crore approved by the Board of Directors
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Shyam Metalics and Energy Limited reported strong FY2026 consolidated results with revenue of ₹18,552 crore (up 22% from ₹15,159 crore). Net profit after tax stood at ₹1,070 crore versus ₹908 crore in FY2025, with EBITDA at ₹2,537 crore. The Board approved a fresh capital expenditure of ₹2,700 crore across two new projects: a Long & Speciality Wire Rod and Bar Mill (SBQ Mill) with 800,000 TPA capacity at Kharagpur, and expansion of stainless steel capacity from 0.50 to 0.60 MTPA with downstream facilities at Sambalpur—both targeted for commissioning by March 2029. The company recommended a final dividend of ₹2.70 per share (27% of face value). Auditors gave an unmodified opinion. Notably, a subsidiary received a Provisional Attachment Order from the Enforcement Directorate for ₹152.48 crore related to an alleged coal mining investigation, though management refutes the allegations.
The massive ₹2,700 crore capex plan signals aggressive capacity expansion in wire rods and stainless steel, which could drive long-term revenue growth. However, the Enforcement Directorate investigation and asset attachment on a subsidiary introduces regulatory risk and potential reputational concerns that investors should monitor closely.