- Consolidated EBITDA rises 16.6% in 9M FY26
- Q3 FY26 EBITDA grows amid selective pricing pressure
Shyam Metalics reported profit after tax of INR 749 crore for the first nine months of FY26, up 8.6% from INR 689 crore in the corresponding period of FY25, supported by integrated operations, a diversified product mix and cost efficiencies. Profit after tax for the third quarter of FY26 stood at INR 198 crore, broadly in line with the year-ago period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 16.6% year on year to INR 1780.6 crore in 9M FY26, from INR 1526.8 crore a year earlier. EBITDA for the December quarter increased 6.3% to INR 539 crore, compared with INR 507 crore in Q3 FY25.
The company said global steel demand remained weak due to geopolitical uncertainty, trade disruptions and volatile raw material prices. Domestic demand in India was supported by infrastructure spending, manufacturing activity and urbanisation, while pricing pressure was seen in certain retail and secondary segments during the quarter.
Stainless steel sales volumes rose 12% year on year to 67,000 tonnes in 9M FY26. Volumes in the December quarter increased 10% to 22,000 tonnes.
Capacity and capital expenditure
During the quarter, the company commissioned a 450,000-tonnes-per-annum blast furnace at its Kharagpur plant. A 90 MW captive power plant and a 150,000-tonnes-per-annum colour-coated line are expected to be commissioned in the fourth quarter of FY26.
Aluminium backward integration projects, including a 600,000-tonnes-per-annum flat-rolled products facility and a 20,000-tonnes-per-annum foil plant, are targeted for commissioning by June 2026.
As of 9M FY26, the company had incurred around INR 8038 crore, or about 85%, of its planned INR 9425 crore capital expenditure.
Stainless steel capacity is expected to increase to 0.70 million tonnes per annum from 0.20 million tonnes per annum, driven primarily by flat products additions. Stainless steel sales volumes are projected to rise to 0.65 million tonnes per annum by FY28, from 0.08 million tonnes per annum in FY25.
These projects aim to strengthen backward integration, enhance value-added steel capacity, and support the company’s long-term growth strategy.
Approved expansion
The board has approved additional capital expenditure of INR 6660 crore for capacity expansion, backward integration and downstream projects, including wagon manufacturing, blast furnace expansions, power capacity additions and hot rolling facilities. The company continues to prioritise stainless steel and aluminium as key growth drivers, citing low per capita stainless steel consumption in India and increasing demand from infrastructure, manufacturing, and consumer segments.
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