Shares of Shyam Metalics and Energy Ltd. are in focus on Monday, November 2, after the company reported a healthy set of numbers in the second quarter.
Its topline was driven by higher volumes. The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at at ₹822.8 crore during the quarter, which was better than Nuvama’s expectations of ₹77 crore.
Its profit after tax (PAT) was aided by change in depreciation method.
The company’s sales increased 33.4% to ₹5,960 crore from ₹,4,467 crore last year. Volumes were up 26% to 15.49 lakh tonne from 12.26 lakh tonne last year.
On a year-on-year basis, Shyam Metalics’ EBITDA grew by 52% from last year’s figure of ₹539.9 crore. EBITDA margin expanded to 13.81% from 12.09% last year. EBITDA softened a bit sequentially since Metallics prices dropped 9.3% from the previous quarter. Metallics constitutes 32% of its revenue mix.
EBITDA per tonne during the quarter stood at ₹5,312 compared to ₹4,404 last year and ₹5,531 in the previous quarter.
The company’s profit after tax (PAT) increased 97% to ₹511 crore from ₹260 crore in the previous year. It reported depreciation was down 48% to ₹110 crore from ₹211 crore last year. The company’s depreciation was lower effective this quarter. It shifted from written down value to straight-line depreciation.
It reported a net debt of ₹192 crore, becoming a net debt company as capex began to pick-up. First half capex stood at ₹1,291 crore, which is more than 50% of the entire financial year 2026 capex of ₹2,036 crore.
Shyam Metalics’ focus on backward integration continues. It has mining rights for the Phutamura coal block through an investment in Alom Solar Pvt Ltd. It has proposed to acquire a 51% controlling stake in Alom Solar Pvt Ltd. It expects incremental EBITDA of ₹400 crore by FY31. The production is expected from July 2027.
Shares of Shyam Metalics and Energy ended the previous session 1.2% higher at ₹1,155 apiece. The stock has gained 10.2% in the past month, 27.6% in the last six months and 37.2% this year, so far.
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Shyam Metalics shares may react to higher volume growth, strong Q2 operating performance