Sharvaya Metals reported a doubling of revenue for FY26, reaching ₹229.83 crore from ₹112.52 crore in the prior year. Despite the top-line growth, Profit After Tax (PAT) declined by 6.8% to ₹11.67 crore, reflecting margin compression amid rising operational expenses.

The Ahmednagar-based aluminium manufacturer also marked a significant corporate milestone during the fiscal year with its listing on the BSE SME Platform in September 2025. The Initial Public Offering (IPO) raised ₹58.80 crore, strengthening the company's capital base and broadening its shareholder base ahead of planned capacity expansions.

Financial Performance

The company's financial results for the year ended March 31, 2026, highlight a divergence between revenue growth and profitability metrics. While revenue surged 104%, EBITDA contracted slightly to ₹18.26 crore from ₹19.30 crore in FY25. This indicates that operating efficiency faced headwinds despite higher sales volumes.

Cost of materials consumed rose sharply to ₹215.72 crore from ₹96.04 crore, aligning with the revenue increase. However, other expenses more than doubled to ₹67.28 crore from ₹25.58 crore, driven largely by higher power, fuel, and invoice discounting charges. Finance costs remained relatively stable at ₹17.59 crore.

What the Numbers Show

A key observation is the significant increase in working capital requirements. Inventories rose to ₹441.87 crore from ₹300.46 crore, while trade receivables jumped to ₹107.07 crore from ₹33.32 crore. This suggests that as the company scaled operations, it required greater capital deployment in stock and credit extension, impacting cash flow generation relative to accrual-based profits.

Strategic Developments

Sharvaya Metals expanded its product portfolio during FY26 by successfully developing 2xxx and 7xxx series aluminium extrusions. These high-strength alloys cater to advanced applications in automotive and defence sectors, addressing a domestic supply gap previously filled by imports. The company aims to leverage this capability to deepen market penetration in high-growth segments.

The Board has recommended no dividend for the year, opting instead to conserve resources for growth initiatives. The AGM is scheduled for September 24, 2026, where shareholders will vote on the reappointment of directors and the ratification of cost auditor remuneration.

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.