Sharvaya Metals reported a 104.3% year-on-year revenue surge to ₹229.83 crore for FY26, more than doubling its top line from ₹112.52 crore in the previous fiscal year. The Ahmednagar-based aluminium manufacturer also listed its equity shares on the BSE SME Platform in September 2025, raising ₹58.80 crore through an initial public offering.

Despite the significant topline growth, net profit after tax (PAT) declined by 6.7% to ₹11.67 crore from ₹12.51 crore in FY25. EBITDA contracted by 5.4% to ₹18.26 crore, reflecting margin compression amidst higher operational costs and working capital investments.

Financial Performance

The company’s financial results for the year ended March 31, 2026, highlight a divergence between volume growth and profitability.

Revenue growth was supported by increased production volumes across its diversified portfolio of value-added aluminium products, including alloyed ingots, billets, slabs, and EV battery housings. However, cost of materials consumed rose sharply to ₹215.72 crore from ₹96.04 crore, outpacing revenue growth and pressuring margins.

What the Numbers Show

EBITDA margin contracted to 7.9% in FY26 from 17.2% in FY25. This significant compression indicates that while the company successfully scaled operations, it faced higher input costs or lower realizations that were not fully passed on to customers. Additionally, other expenses surged to ₹6.73 crore from ₹2.56 crore, primarily driven by a rise in invoice discounting charges to ₹1.40 crore from ₹0.22 crore, suggesting increased reliance on short-term financing for working capital needs.

Balance Sheet and Capital Structure

The IPO strengthened the company’s balance sheet significantly. Shareholder funds expanded by 240% to ₹773.25 crore from ₹227.78 crore, largely due to the fresh equity issuance. Consequently, the debt-to-equity ratio improved dramatically to 0.16 from 0.66.

Cash and cash equivalents stood at ₹2.03 crore as of March 31, 2026, up from ₹0.07 crore in the prior year. Inventories increased by 47% to ₹441.87 crore, reflecting stockpiling ahead of anticipated demand or ongoing production cycles. Trade receivables also rose sharply to ₹107.07 crore from ₹33.32 crore, indicating extended credit periods or larger order sizes.

Strategic Developments

Sharvaya Metals successfully developed production capabilities for 2xxx and 7xxx series aluminium extrusions during FY26. This expansion allows the company to serve high-performance applications in sectors such as defence, aerospace, and automotive, reducing dependence on imported high-strength aluminium. The company operates an integrated manufacturing facility with a capacity of 10,000 MTPA for aluminium extrusions and profiles.

Corporate Actions

The Board of Directors proposed the reappointment of Shreyans Katariya as Managing Director and Pukhraj & Associates as Statutory Auditors for five years. No dividend was declared for FY26. The 12th Annual General Meeting is scheduled for September 24, 2026, to transact these businesses.

Sharvaya Metals Limited reported a 104.2% surge in revenue from operations to ₹22,983.11 lakh for the financial year ended March 31, 2026, compared to ₹11,251.66 lakh in the previous year. The company’s net profit for the year stood at ₹1,166.92 lakh, while basic earnings per share were recorded at 13.11. The statutory auditors, M/s. Pukhraj & Associates, issued an unmodified opinion on the financial results, which were approved by the Board on May 30, 2026.

Financial Performance

The substantial growth in revenue was driven by a robust increase in total income, which rose to ₹23,014.66 lakh from ₹11,275.87 lakh in FY25. Despite a rise in total expenses to ₹21,379.48 lakh, the company maintained a profit before tax of ₹1,635.18 lakh. The half-year performance for the period ended March 31, 2026, also reflected this upward trend, with revenue reaching ₹13,986.26 lakh and a net profit of ₹228.32 lakh.

Balance Sheet Metrics

The company’s balance sheet strengthened significantly during the year. Shareholders' equity increased to ₹7,732.49 lakh as of March 31, 2026, up from ₹2,277.77 lakh in the previous year. This growth was primarily fueled by a sharp rise in reserves and surplus, which reached ₹6,729.49 lakh. Total assets expanded to ₹9,933.75 lakh, with current assets constituting the majority at ₹8,469.74 lakh.

Cash Flow and Capital Structure

Cash flow from financing activities turned positive at ₹3,830.56 lakh, largely due to an increase in share premium of ₹4,037.80 lakh and a rise in share capital by ₹250.00 lakh. Consequently, cash and cash equivalents improved to ₹203.44 lakh from ₹7.06 lakh at the end of the previous year. Long-term borrowings decreased to ₹204.64 lakh from ₹485.05 lakh, indicating a deleveraging of the balance sheet.