Shyam Metalics and Energy Ltd

AGM Details

• AGM held on 25 August 2026 at 3:00 PM IST via VC/OAVM.
• Cut-off date for remote e-voting: 18 August 2026.
• Meeting duration: 3:00 PM to 4:36 PM IST.

Ordinary Business

• Adoption of Audited Standalone and Consolidated Financial Statements for FY 2025-26.
• Interim Dividend 18% (₹1.80) and Final Dividend 27% (₹2.70) for FY 2025-26.
• Re-appointment of Director Retiring by Rotation: Sheetij Agarwal.

Special Business

• Remuneration of Cost Auditor for FY 2026-27 to be ratified.
• Fresh approval of funds up to ₹4500 crores.

Voting status

• Voting results for all resolutions are to be submitted subsequently.
• Outcomes will be declared on the company and stock exchange portals.

Auditors

• Statutory Auditors: MSKA & Associates LLP; Secretarial Auditors: MKB & Associates.
• Scrutinizer: Raj Kumar Banthia.

Governance

• Auditors' Report had no qualifications affecting financials.

Key investor updates

• Record date corrected to 7 August 2026 for AGM; AGM on 25 August 2026 via VC/OAVM.
• Final dividend ₹2.70 per share; record date 7 August 2026.
• Remote e-voting window 21–24 August 2026; attendance via VC/OAVM.
• Consolidated financial statements for year ended 31 March 2026 approved.
• Brij Bhushan Agarwal appointed Chairman & MD.
• Sanjay Kumar Agarwal appointed Joint MD.
• Independent director Chandra Shekhar Verma appointed 4 July 2024.
• ED provisional attachment on Shyam SEL and Power Limited for ₹152.48 cr.
• Revenue from operations ₹18,487.46 cr.
• Net profit to equity holders ₹1,060.17 cr.

Event overview

• Commissioning of new 1.5 MTPA beneficiation plant at Sambalpur, Odisha.
• Capital investment of ₹150 crore for the facility.
• Plant upgrades low-grade ore into high-grade feedstock for downstream use.
• In-house processing lowers external feedstock costs and expands margins.
• Eco-efficient design to optimize water and energy use and minimize waste.

Project update

• 90 MWp captive solar project commissioned at Jamuria manufacturing plant in West Bengal.
• Total installed capacity 8.90 MWp; CAPEX 4.60 MWp and OPEX 4.30 MWp.
• Captive consumption to optimize power costs and support green energy integration.

Business Overview

• 6th largest steel producer with 16.93 MTPA combined capacity across metals.
• Self-funded growth with no new equity and a net cash positive stance.
• Exports to 40 countries; operations across West Bengal, Odisha, MP and Jharkhand.
• Value-added, integrated metals platform supported by backward integration.

Operational Highlights

• Capex incurred since listing: ₹9,205 Cr; ~49% of ₹18,785 Cr planned.
• Post-expansion capacity target: 27 MTPA by FY31.
• Aluminium foil facility commissioned July 2026; FRP and battery foil expansions planned.
• Ramsarup wagon plant: 4,800 units; Phase I/II 2,400 wagons each.
• Mittal Corp stainless steel expansion via acquisition; 0.15 MTPA finished SS.
• Export presence expanded to 40 countries; FY26 export revenue share 21%.
• CAPEX funded by accruals; debt for working capital only.
• Captive power post-expansion: 782 MW; 79% of power from captive.
• Total captive capacity currently 467 MW; expanding to 782 MW post expansion.

Financial Performance

• Q1 FY27 revenue ₹5,455 Cr; +23% YoY.
• FY26 revenue ₹18,552 Cr; EBITDA ₹2,333 Cr; PAT ₹1,060 Cr.
• Gross margin 28.3%; EBITDA margin 14.0% (Q1 FY27).
• PAT margin 6.4% (Q1 FY27).
• Capex since listing ₹9,205 Cr; ₹6,286 Cr capitalized.
• Export contribution to FY26 revenue: 21%.
• EPS ₹12.6 in Q1 FY27; ₹38.1 in FY26.
• FY26 ROCE 16%; ROE 13%; debt-to-equity cap at 0.5x.

Capital Structure & Liquidity

• No new equity; internal accruals fund expansion; debt only for working capital.
• CRISIL rating: AA+ (Stable).
• Net debt policy: debt-to-equity capped at 0.5x; historically net cash positive.
• Capex cadence aligned with cashflow; ongoing capex update: ₹9,205 Cr incurred since listing.

Strategic Priorities & Outlook

• Vision 2031: Revenue ₹42,500+ Cr; EBITDA ₹6,200+ Cr; capacity 27 MTPA; ROE 20%; ROCE 22%.
• Five moves: value-added products, geographic expansion, efficiency, greener operations, deeper integration.
• Capital allocation: 70:20:10 for growth, liquidity, dividends; funded entirely from internal cash.
• No equity raise; maintain disciplined debt; expand high-value product portfolio and downstream presence.

Risks & Mitigation

• Cyclical steel demand and execution risk; mitigated by self-funded capex and diversified product mix.
• Reliance on captive power; mitigated by strong backward integration and green energy initiatives.
• Geographic diversification reduces exposure to single-market downturns.

Governance & Leadership

• Independent board with seasoned professionals guiding governance and strategic oversight.
• Management credibility led by CMD Brij Bhushan Agarwal; finance lead Deepak Agarwal and strategy head.

Financial Highlights

• Revenue for Q1 FY27 is Rs 5,455 Cr, up 23% YoY.
• EBITDA Rs 812 Cr; EBITDA margin 14.9%.
• Operating EBITDA Rs 765 Cr; margin 14.0%.
• Profit after tax Rs 351 Cr; PAT margin 6.4%.
• Interim dividend of Rs 1.80 per equity share declared.
• Cash accrual Rs 616 Cr.

Operational Highlights & Milestones

• Commercial production commenced at Aluminium Foil Facility in Odisha.
• Aluminium Flat Rolled Products facility on track for commissioning in Q2 FY27.
• Vision 2031 roadmap unveiled to transform into a diversified, value-added metals enterprise.
• All major growth projects progressing on schedule.

Financials

• Consolidated total income for quarter ended 30 Jun 2026: ₹5,502.18 crore.
• Consolidated EBITDA before interest, depreciation and amortisation: ₹756.10 crore.
• Consolidated profit after tax: ₹311.54 crore.
• Consolidated basic EPS ₹10.45; diluted ₹10.41.
• Standalone total income for quarter ended 30 Jun 2026: ₹1,623.25 crore.
• Standalone EBITDA: ₹277.11 crore.
• Standalone profit after tax: ₹138.96 crore.
• Interim dividend declared: ₹1.80 per share; record date 24 July 2026; payable within 30 days.

Capital actions & governance

• Fund raising up to ₹4,500 crore via equity and/or debt instruments; approvals required.
• Routes include private placement (QIP), FPO, preferential issue, or combination.
• 24th AGM fixed for 25 August 2026; to be held via VC/OAVM.
• Record date for AGM/dividend: 7 August 2026.
• Share registers closed 19–25 August 2026 for AGM and dividend.
• E-voting cutoff: 18 August 2026.
• Scrutinizer for e-voting: MKB & Associates.

Regulatory matters

• Provisional Attachment Order under PMLA by ED on Shyam SEL and Power Limited; management refutes allegations.
• Adjudicating Authority Show Cause notice dated 21 May 2026; management has replied.
• Attachment is provisional; management does not expect operational impact.

Audits & disclosures

• Independent auditor's review on consolidated results; no material misstatement.
• Independent auditor's review on standalone results; no material misstatement.

Business & segments

• Group operates in steel and allied products; single reportable segment.
• Primary revenue from steel and allied products; captive power generation.

Commercial production commencement

• SMEL Steel Structural Pvt. Ltd., a step-down subsidiary, commenced commercial production at Sambalpur on 16 July 2026.
• Product: premium-grade aluminium foil, thickness 6–40 microns.
• Installed capacity: 18,000 TPA at Sambalpur facility.
• Capital outlay for Sambalpur downstream facilities is about Rs 800 crores.
• FRP line expansion: aluminium flat rolled products to add 60,000 TPA; launch by Sep 2026.
• FRP line readiness at same site targeted for commercial launch by end-September 2026.
• Expected operating margin uplift of 40–50% and 2.0–2.5x top-line growth.
• Project expected to reduce import dependence and enhance domestic packaging and industrial foils.
• Scope includes both the Foil facility and the FRP line.