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Profit before tax (PBT) stood at Rs 469.21 crore in Q1 FY27, registering a growth of 20.64% from Rs 388.94 crore reported in the corresponding quarter previous year.
EBITDA increased 28.3% to Rs 812 crore, while operating EBITDA rose 32% to Rs 765 crore. Operating EBITDA margin improved to 14% from 13.1% a year ago, while reported EBITDA margin expanded to 14.9% from 14.3%.
Total expenses increased 22.02% YoY to Rs 4,689.80 crore in Q1 FY27. The cost of materials consumed stood at Rs 4,214.49 crore, up 28.09% YoY, while employee benefit expenses rose 10.26% YoY to Rs 135.62 crore.
Brij Bhushan Agarwal, chairman & managing director, said, “We commenced Q1 FY27 on a strong footing, driven by disciplined execution, operational excellence, and the strength of our integrated business model. During the quarter, revenue, EBITDA and PAT grew by 23%, 28% and 21% year-on-year, respectively. The EBITDA margin improved by 100 bps supported by sustained operational efficiency improvements. A defining milestone during the quarter was the unveiling of our Vision 2031 roadmap, which outlines our ambition to transform Shyam Metalics from a commodity-focused steel producer into a diversified, value-added metals enterprise with a stronger and more resilient earnings profile.
We also achieved a significant operational milestone with the commencement of commercial production at our aluminum foil facility in Odisha, marking an important step in building a fully integrated downstream aluminium ecosystem. The aluminum flat-rolled products facility remains on track for commissioning in the second quarter, while all major projects across our growth portfolio are progressing as planned and continue to advance within their targeted timelines. Importantly, despite executing one of the largest investment programs in our history, we have maintained a strong balance sheet with marginal debt levels, reflecting prudent capital allocation, healthy internal cash generation, and our long-standing commitment to self-funded growth. As our new capacities ramp up and high-value businesses such as HR, SBQ, stainless steel, aluminium and other downstream segments contribute meaningfully, we expect a significant strengthening of earnings quality, profitability, and capital efficiency over the coming years.
We remain confident of achieving our long-term objective of delivering superior returns, with ROE and ROCE expected to improve materially as the Vision 2031 strategy unfolds. Looking ahead, supported by our strong financial position, diversified portfolio, and a well-defined growth pipeline, we are well positioned to capitalise on emerging opportunities and create sustainable long-term value for all stakeholders.”
Meanwhile, the board recommended a first interim dividend of Rs 1.80 per equity share for FY27. The record date has been fixed as 24 July 2026, and the dividend will be paid within 30 days of its declaration.
The board approved raising up to Rs 4,500 crore through the issuance of equity-linked instruments, including equity shares, preference shares and convertible debentures, in one or more tranches. The fundraising may be undertaken through a qualified institutions placement (QIP), follow-on public offer (FPO), or other permissible modes. The company's 24th annual general meeting (AGM) is scheduled to be held on 25 August 2026.
Shyam Metalics and Energy is a leading integrated metal-producing company based in India with a focus on long steel products and ferroalloys. The company is among the largest producers of ferroalloys, one of the leading players in terms of pellet capacity, and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.
The company also confirmed that its Aluminium Flat Rolled Products (FRP) facility is in final readiness phase and is on track for commercial launch by September 2026, further strengthening its presence in the value-added aluminium products segment. The FRP section will have an installed capacity of 60,000 TPA and would span a thickness range of 0.3 to 4.0 mm.
In total the company is investing around Rs 800 crore on the Aluminium facilities in Sambalpur.
Sambalpur Downstream Facility Capacity Profiles:
Aluminium Foils: 18,000 TPA capacity : Thickness range: 6-40 microns (Now under active Commercial Production) Aluminium Flat Rolled Products (FRP): 60,000 TPA capacity : Thickness range: 0.3-4.0 mm (Commercial Production scheduled by the end of September 2026)
The strategic foray into value-added, downstream aluminium products represents a major step in SMEL¡¦s product diversification strategy. It addresses the critical domestic demand for precision-engineered and high-quality materials, reduces import dependence, and strengthens India¡¦s Atmanirbhar Bharat initiative under the Make in India vision.
The commissioning of these plants ¡V Aluminium Foil and the FRP facility ¡V is anticipated to enhance SMEL¡¦s operating margins by approximately 40-50% on the back of optimised product mix and higher product realisations. It is also projected to drive robust revenue growth, expanding the company's topline by 2x to 2.5x through enhanced market reach and distribution across domestic and international markets.