Shyam Metalics and Energy Q2 FY27 results: net profit up 96.2% to ₹510.99 crore, revenue up 33.7%

How did Shyam Metalics and Energy perform in Q2 FY27?

Shyam Metalics and Energy reported consolidated revenue of ₹5,960 crore for Q2 FY27, up ₹1,503 crore or 33.7% from Q2 FY26 and ₹505.10 crore or 9.3% from Q1 FY27. EBITDA rose to ₹823.02 crore from ₹539.43 crore a year earlier and ₹765.29 crore in the previous quarter. The EBITDA margin was 13.8%, compared with 12.1% in Q2 FY26 and 14.0% in Q1 FY27.

Net profit was ₹510.99 crore, up ₹250.54 crore or 96.2% from Q2 FY26 and ₹160.26 crore or 45.7% from Q1 FY27. Profit before tax was ₹658.46 crore, while basic EPS was ₹18.39, compared with ₹12.60 in the previous quarter. On the standalone basis, revenue was ₹1,894.77 crore and net profit was ₹198.13 crore, up 13.4% from ₹135.61 crore in the year-ago quarter.

What changed in Shyam Metalics and Energy's costs and profit?

Total expenses increased by ₹1,157 crore or 27.7% year on year to ₹5,336 crore, below the 33.7% increase in revenue. Cost of materials rose ₹1,110 crore or 33.7% to ₹4,401 crore, employee cost increased ₹21.74 crore or 17.5% to ₹145.86 crore, and finance costs rose ₹38.37 crore or 76.3% to ₹88.67 crore.

Depreciation fell by ₹101.14 crore or 47.9% to ₹110.04 crore from ₹211.18 crore, while other expenses increased by ₹235.06 crore or 44.7% to ₹761.32 crore. Other income fell ₹34.98 crore or 50.6% to ₹34.15 crore. The year-ago quarter included an exceptional gain of ₹0.01 crore, while Q2 FY27 had no exceptional item.

Tax expense rose by ₹60.74 crore or 70.1% to ₹147.38 crore from ₹86.64 crore. The filing did not state why profit rose, but the reported figures show lower depreciation and a higher EBITDA margin than Q2 FY26, partly offset by higher material costs, finance costs and other expenses.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose by ₹2,539.42 crore or 28.6% to ₹11,415.28 crore, while total income increased by ₹2,497.92 crore or 27.8% to ₹11,496.52 crore. Profit before tax was ₹1,127.67 crore, up ₹391.64 crore or 53.2% from ₹736.03 crore in H1 FY26.

H1 FY27 net profit was ₹861.72 crore, up ₹310.60 crore or 56.4% from ₹551.12 crore, and EPS was ₹30.99 compared with ₹19.81. Revenue growth was accompanied by higher profit before tax and net profit, according to the reported results.

What do the balance sheet and cash flow show?

Total assets increased to ₹23,194.94 crore at 30 September 2026 from ₹20,060.84 crore at 31 March 2026. Total equity was ₹12,348.59 crore compared with ₹12,357.18 crore, while borrowings rose to ₹1,332.19 crore from ₹981.32 crore and cash fell to ₹22.09 crore from ₹97.12 crore.

Inventories increased to ₹5,287.23 crore from ₹4,501.45 crore, trade receivables rose to ₹1,193.54 crore from ₹904.59 crore, and trade payables increased to ₹6,825.57 crore from ₹4,865.09 crore. In H1 FY27, operating cash flow was ₹1,492.82 crore, compared with ₹598.36 crore in H1 FY26, while investing cash flow was negative ₹1,624.41 crore against negative ₹835.37 crore.

Financing cash flow for H1 FY27 was ₹52.41 crore, compared with ₹224.58 crore a year earlier. Capital expenditure was ₹1,831.12 crore in H1 FY27, up from ₹1,071.17 crore in H1 FY26.

How has Shyam Metalics and Energy done over the last 8 quarters?

Revenue reached its highest level in the eight-quarter series at ₹5,960 crore in Q2 FY27, after rising from ₹5,455.09 crore in Q1 FY27. The lowest revenue was ₹3,752.51 crore in Q3 FY25, and revenue has risen year on year in each of the last eight quarters.

Net profit was ₹510.99 crore in Q2 FY27, the highest point in the series, while the lowest was ₹197.31 crore in Q3 FY25. The EBITDA margin reached its peak at 14.0% in Q1 FY27 and its low at 11.0% in Q3 FY26, before easing to 13.8% in Q2 FY27. Profit has risen year on year in each of the last eight quarters.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also gave in-principle approval for the induction of Debashis Prasad Pattanaik as an LIC nominee director, subject to member approval and required formalities.

The company proposed acquiring a 51% controlling stake in Alom Solar Private Limited, subject to definitive agreements and necessary approvals. Alom Solar holds mining rights for the Phutamura Coal Block, covering about 7.324 sq. km. with estimated reserves of about 170 million tonnes, and would become a subsidiary after the acquisition.

The board also proposed an initial capex budget of approximately ₹360 crore for developing and operationalising the Phutamura Coal Block. Shyam Metalics and Energy’s contribution would be 51%, or approximately ₹183.60 crore, with the remaining 49% funded by the joint venture partner. The same-day filings did not announce a dividend or fund raise.

What did Shyam Metalics and Energy's management say?

Management said its FY31 targets were revenue of about ₹42,500+ crore, EBITDA of about ₹6,600+ crore, an EBITDA margin of about 16%, capacity of about 27 MTPA, and ROE and ROCE of 16% and 24%. It said about ₹8,800 crore of capex over the next 3–4 years would be funded by internal accruals without external debt, with debt-to-equity capped at 0.5x.

Management said the product mix was shifting towards value-added businesses, including stainless steel, aluminium foil, CR coil and sheet, SBQ and railway wagons. It said Phutamura coal production was expected in July 2027, and the presentation cited captive power costing ₹2.44 per unit against grid power at ₹5–7 per unit.

Management identified risks from working-capital build, pending expansion projects and the change from written-down-value to straight-line depreciation, which it said led to FY31 guidance being marked “REVISED.” It also said Q2 per-tonne realisations fell for carbon steel long, CR coil and sheet, and metallics; no analyst questions were included in the supplied presentation excerpt.

How did Shyam Metalics and Energy shares react?

The filing appeared after market hours. The stock fell 1.0% after five minutes, rose 0.2% after 15 minutes, and fell 1.2% after 30 minutes. On the reaction day, it closed 3.9% above its pre-results close of ₹1,155.00, while the Nifty Smallcap 250 rose 1.4% and the median move for the other Iron & Steel Products stocks was 0.9%.

By the next day’s close, the stock was up 5.6% from its pre-results close. Its excess move over the industry median was 3.0 percentage points on the reaction day and 4.3 percentage points by the next day’s close. Earlier results-day moves included 4.4% on 20 July 2026, negative 4.3% on 11 May 2026 and 2.8% on 24 January 2026.

How did other Iron & Steel Products companies do?

Among 26 other Iron & Steel Products companies that had filed for the quarter, the median revenue growth was 23.5%. Fifteen peers grew slower than Shyam Metalics and Energy and 11 peers grew faster than the company, based on the reported peer comparison.

Profit was higher for 20 peers out of the 31 companies assessed for profit growth. The peer data was as of 4 November 2026 and excludes Shyam Metalics and Energy from the counts of peers growing faster, slower, or reporting higher profit.