Shyam Metalics Q2 Net Profit Surges 96% YoY to ₹511 Crore; Board Approves Coal Block Buy

Key numbers

P/E TTM	28.9xSector 16.47x
Market Cap	₹32,460 CrMetals & Mining
1-Year Return	27.0%Stock Performance
RSI	58.01Neutral Zone

Key highlights

• Consolidated net profit jumped 96.2% YoY to ₹511 crore, up from ₹260 crore in Q2-26
• Revenue from operations grew 33.4% YoY to ₹5,960 crore against ₹4,467 crore in the year-ago period
• Operating margins improved to 11.0% compared to 7.7% in Q2-26 and 8.5% in the preceding quarter
• Board approved a 51% stake acquisition in Alom Solar Private Limited to secure the Phutamura Coal Block
• Change in depreciation method from WDV to SLM reduced the quarterly charge by ₹171.77 crore

Operational Growth and Margin Expansion

Shyam Metalics witnessed significant scale-up in operations during the second quarter of FY27, with revenue from operations climbing to ₹5,960 crore. This represents a 33.4% increase over the ₹4,467 crore recorded in the same period last year. The company's profitability benefited from improved operational efficiencies and a higher volume of value-added products, resulting in a profit before tax of ₹658 crore.

This is a substantial rise from the ₹347 crore reported in Q2-26. Operating margins expanded by 330 basis points year-on-year to 11.0%, reflecting better cost absorption despite the volatile pricing environment in the global steel sector.

Strategic Backward Integration for Fuel Security

• The board has given in-principle approval to acquire a 51% controlling stake in Alom Solar Private Limited.
• Alom Solar holds mining rights for the Phutamura Coal Block in Chhattisgarh, covering 7.324 sq. km.
• The coal block has estimated reserves of approximately 170 million tonnes, intended for captive use.
• An initial Capex budget of ₹360 crore has been approved for the development of this coal block.
• Shyam Metalics will contribute 51% of the initial Capex, amounting to approximately ₹183.60 crore.
• The transaction is expected to be completed by November 30, 2026, through cash consideration.

Accounting Adjustment and Product Milestones

A key driver for the reported bottom-line growth was the revision in the depreciation methodology. Effective July 1, 2026, the company transitioned from the Written Down Value (WDV) method to the Straight-Line Method (SLM) for property, plant, and equipment. This change reduced the consolidated depreciation charge for the quarter by ₹171.77 crore.

On the manufacturing front, the company continues to leverage its expanded capacity. Following the commencement of commercial production at its 18,000 TPA Aluminium Foil facility in July 2026, the company is now focused on the commissioning of the 60,000 TPA Aluminium Flat Rolled Products line slated for the current fiscal year.

Management on Depreciation Methodology Change

Management believes that SLM provides a more appropriate basis for reflecting the pattern in which the future economic benefits embodied in the assets are expected to be consumed and results in a more reliable and relevant presentation of the Company’s / Group’s financial performance and financial position.

What to watch next

• Completion of the 51% acquisition of Alom Solar Private Limited on or before November 30, 2026
• Operationalization progress of the Phutamura Coal Block in Raigarh District, Chhattisgarh
• Commissioning of the 60,000 TPA Aluminium Flat Rolled Products line during FY 2026-27

Shyam Metalics and Energy · financial snapshot

Share price	₹1162.9
Market capitalisation	₹32,460.25 Cr
Revenue (annual)	₹18,552.21 Cr
Net profit (annual)	₹1,070.24 Cr
Revenue (latest quarter)	₹5,455.09 Cr+4.10% vs previous quarter
Net profit (latest quarter)	₹345.07 Cr+8.14% vs previous quarter
P/E (TTM)	28.9×Sector 16.47×
Promoter holding	74.59%0.00% QoQ
FII holding	5.29%Current quarter

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