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Shyam Metalics & Energy Ltd

| Statement of Audited Consolidated Financial Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤11th May 26

Summary : Company reports strong financials, plans significant capex, but faces regulatory scrutiny.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Cost of materials consumed (FY26): ₹13,680.15 Crores.
  2. Consolidated Employee benefits expense (FY26): ₹506.98 Crores.
  3. Consolidated Other expenses (FY26): ₹2,352.58 Crores.
  4. Standalone Cost of materials consumed (FY26): ₹4,633.00 Crores.
  5. Standalone Employee benefits expense (FY26): ₹198.35 Crores.
  6. Standalone Other expenses (FY26): ₹717.10 Crores.
  7. Consolidated Revenue from operations (FY26): ₹18,552.21 Crores.
  8. Consolidated Other income (FY26): ₹203.61 Crores.
  9. Standalone Revenue from operations (FY26): ₹6,992.98 Crores.
  10. Standalone Other income (FY26): ₹110.77 Crores.
  11. Consolidated Net cash from operating activities (FY26): ₹2,023.56 Crores.
  12. Consolidated Net cash used in investing activities (FY26): (₹1,939.26) Crores.
  13. Consolidated Net cash used in financing activities (FY26): (₹50.31) Crores.
  14. Standalone Net cash from operating activities (FY26): ₹689.51 Crores.
  15. Standalone Net cash used in investing activities (FY26): (₹556.67) Crores.
  16. Standalone Net cash used in financing activities (FY26): (₹148.63) Crores.
  17. Consolidated Total Assets (Mar 2026): ₹20,060.84 Crores.
  18. Consolidated Total Equity (Mar 2026): ₹11,522.81 Crores.
  19. Standalone Total Assets (Mar 2026): ₹8,723.26 Crores.
  20. Standalone Total Equity (Mar 2026): ₹6,436.45 Crores.
  21. Both standalone and consolidated financial results are presented and audited.

Corporate Overview

  1. Registered office in Kolkata, West Bengal.
  2. Capex projects located in Kharagpur and Sambalpur.
  3. Provisional Attachment Order by the Directorate of Enforcement (ED) on a subsidiary under PMLA.
  4. Ongoing investigation related to alleged purchase of coal from illegal mining.
  5. Manufacturing of steel and allied products including pellets, sponge iron, MS billets, TMT and long products, speciality alloys, colour coated sheets, aluminium foil, pig iron, stainless steel and power generation for captive consumption.
  6. Investments are expected to significantly enhance manufacturing capacity, operational efficiency, product portfolio, and long-term growth prospects.
  7. Projects are expected to contribute positively towards strengthening market position, improving profitability, and enhancing shareholder value.
  8. Management refutes allegations regarding ED attachment order and expects no impact on operations.
  9. Steel and allied products is the only reportable business segment.
  10. Expansion of Long & Speciality Wire Road and Bar Mill to 800,000 TPA.
  11. Expansion of Stainless Steel from 0.50 MTPA to 0.60 MTPA.
  12. Long & Speciality Wire Road and Bar Mill (SBQ Mill) with furnace in Kharagpur (800,000 TPA, ₹900 Crore, by March 2029).
  13. Expansion of Stainless Steel with downstream facilities in Sambalpur (from 0.50 MTPA to 0.60 MTPA, ₹1,800 Crore, by March 2029).
  14. Total estimated capital expenditure of ₹2,700 crore.
  15. Projects proposed to be funded through internal accruals and borrowings.

Risk Factors

  1. ED provisional attachment order on subsidiary.
  2. Investigation into alleged illegal coal purchase.
  3. Funding capex through borrowings.
  4. Impact of new Labour Codes.

Key Drivers

  1. Significant capital expenditure for expansion.
  2. Unmodified audit opinion on financials.
  3. Recommended final dividend of ₹2.70.
  4. Strong operational performance and growth prospects.

Auditor’s Report

  1. Unmodified opinion on both standalone and consolidated financial results.
  2. Provisional Attachment Order by the Directorate of Enforcement (ED) issued on a subsidiary on April 15, 2026, under the Prevention of Money Laundering Act, 2002, and the management's position thereof.

Board Commentary

  1. Recommended a final dividend of ₹2.70 per Equity Share (27% of Face Value of Rs. 10/-) for FY 2025-26.
  2. Dividend is subject to approval by shareholders at the Annual General Meeting.
  3. Provisional Attachment Order by ED on a subsidiary under PMLA, related to alleged illegal coal purchase.
  4. Provisional Attachment Order by ED on a subsidiary under PMLA, related to alleged illegal coal purchase.
  5. Implementation of four new Labour Codes by the Government of India from November 21, 2025.
  6. Approved new projects/expansion plans with a total estimated capital expenditure of ₹2,700 crore.

Corporate Governance

  1. Audit Committee reviewed financial results and recommended auditors.

Management Discussion & Analysis

Future Strategy

  1. Enhancing manufacturing capacity and operational efficiency through strategic investments.
  2. Expanding product portfolio and strengthening market position for long-term shareholder value.

Operational Focus Areas

  1. Enhance manufacturing capacity.
  2. Improve operational efficiency.
  3. Expand product portfolio.

Performance Drivers

  1. Capex investments expected to enhance manufacturing capacity, operational efficiency, and product portfolio.
  2. Long-term growth prospects and strengthening market position.

Risk Control Measures

  1. Management refutes allegations and is taking appropriate legal recourse.
  2. Management does not expect any impact on operations and financial statements from the ED order.

Critical Risks

  1. Provisional Attachment Order by ED on a subsidiary under PMLA.
  2. Ongoing investigation into alleged illegal coal purchase and pilferage.