Shyam Metalics Plans 9 MTPA Integrated Steel Complex in Maharashtra via ₹50,000 Cr MoU

Key numbers

Proposed Capacity	9 MTPAGreenfield Complex
Market Cap	₹29,247.44 CrMetals & Mining
Revenue TTM	₹19,573.93 CrOperating
RSI	44.34Neutral Zone

Key highlights

• Non-binding MoU signed with the Government of Maharashtra on October 1, 2026
• Proposed establishment of a 9 MTPA Greenfield Integrated Steel Complex in Chandrapur
• Estimated total project investment valued at ₹50,000 Crore
• Projected employment potential for 30,000 individuals, including 10,000 direct roles
• Project scope includes pelletisation, sintering, coke making, blast furnace, and DRI units
• Initiation of regulatory approvals and permissions scheduled for FY 2026-27

What Is the Expansion?

The proposed facility in Chandrapur, Maharashtra, is designed as a comprehensive 9 MTPA greenfield integrated steel plant. The project scope encompasses a wide array of metallurgical processes, including pelletisation, sintering, coke making, and blast furnace operations. Additionally, the complex will feature direct reduced iron units, steel melting shops, and continuous casting facilities.

The project aims to begin the process of obtaining necessary approvals and clearances in the financial year 2026-27. This expansion represents a major scale-up for the company, significantly increasing its production capabilities beyond its existing clusters in West Bengal and Odisha.

Strategic Rationale

• Chandrapur in the Vidarbha region offers strategic proximity to mineral resources and industrial infrastructure
• The 9 MTPA scale allows for substantial economies of scale and integrated production efficiencies
• Collaboration with the state government facilitates access to fiscal incentives and streamlined regulatory permissions
• Expanding into Maharashtra diversifies the company’s geographical footprint, reducing regional concentration risks
• The project addresses growing steel demand in Western India’s infrastructure and manufacturing sectors

Financial Context

Shyam Metalics maintains a robust financial profile with a trailing twelve-month operating revenue of ₹19,573.93 crore. The company reported a net profit of ₹1,123.16 crore on a TTM basis, reflecting an 18.11% year-on-year growth in quarterly profit. While the proposed ₹50,000 crore investment is a long-term capital commitment, the company currently operates with a price-to-earnings ratio of 26.04, compared to the industry average of 20.74.

Its market capitalization stands at approximately ₹29,247.44 crore, supported by a Piotroski score of 6, indicating healthy financial positioning as it embarks on this capital-intensive greenfield project.

Industry Outlook

• Indian steel demand is projected to remain strong, driven by government infrastructure spending and urban development
• The shift toward integrated greenfield plants helps manufacturers maintain control over input costs and quality
• Sector-wide quarterly net profit growth of 49.16% highlights a recovery in margins across the metals industry
• Government policies continue to encourage large-scale capacity additions to reach national production targets

Shyam Metalics and Energy · financial snapshot

Share price	₹1047.8
Market capitalisation	₹29,247.44 Cr
Revenue (annual)	₹18,552.21 Cr
Net profit (annual)	₹1,070.24 Cr
P/E (TTM)	26.04×Sector 18.13×
Promoter holding	74.59%0.00% QoQ
FII holding	2.97%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.