Transcript for the Con Call held on Tuesday, 12th May, 2026 for the Audited Financial Results of the Company of fourth quarter and Year ended 31st March, 2026
SHYAMMETL · price
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Shyam Metalics reported strong Q4 FY26 results with revenue of INR 5,240 crore (up 27% YoY) and EBITDA of INR 756 crore (up 33% YoY), expanding EBITDA margin to 14.4%. Full-year FY26 revenue stood at INR 18,552 crore (up 22%) and PAT crossed INR 1,000 crore at INR 1,061 crore (up 17%). Sales volume grew 26% to 4.94 million tonnes for the full year. Key volume highlights in Q4 included CR coil surging ~200% YoY and pig iron doubling. The Board approved a fresh INR 2,700 crore capex for a long/specialty wire mill at Kharagpur (8 lakh tonnes) and stainless steel expansion at Sambalpur (6 lakh tonnes), targeting commissioning by March 2029. Management guided ~30% operating profit growth for FY27 based on full-year contribution from recently commissioned facilities (CRM phase 2, aluminum foil plant, 0.5 MT DRI). The company remains essentially debt-free and plans to fund capex through internal accruals (~INR 2,000 crore operating cash flow in FY26). An ED inquiry related to coal is ongoing but management dismissed concerns.
Strong execution with volume-led growth and margin expansion signals operational leverage kicking in. New INR 2,700 crore capex into specialty steel and stainless steel downstream targets higher value-added products with estimated EBITDA of INR 12,000-18,000 per tonne, which could materially improve blended margins. FY27 guided at ~30% operating profit growth provides a positive near-term outlook.