Shyam Metalics and Energy’s shares gained over 5% after reporting that its September quarter (Q2FY27) consolidated sales volume rose 26% year-on-year (y-o-y) to 1.5 million tonnes. September was a strong month, with volumes rising 32% y-o-y and revenue growing almost 40% to over ₹2,000 crore.
The integrated metal producer also announced a memorandum of understanding with the Maharashtra government on Monday to set up a 9 million tonne per annum (mtpa) integrated steel plant in Chandrapur, entailing an investment of ₹50,000 crore.
The Q2 volume growth marks a significant improvement versus 8% y-o-y growth in Q1. Blended realization increased by about 7% in Q2, although some of the benefit is likely to be offset by higher coking coal prices.
Thus, revenue growth for H1FY27 now stands at 29% compared with the management’s guidance of 20% growth for FY27. The Q1 Ebitda had risen by 32% to ₹765 crore, as against the company’s 20% growth guidance for FY27.
Several levers support medium-term profit growth. The company is undertaking projects entailing capital expenditure of about ₹14,000 crore and has already spent ₹3,300 crore. This will increase its capacity to 14.6 mtpa across various categories of steel, intermediates and aluminium products by FY31, from the current 9 mtpa.