Shyam Metalics & Energy Limited has filed its Business Responsibility and Sustainability Report (BRSR) for FY26 with the stock exchanges, providing a consolidated view of its environmental, social, and governance (ESG) performance. The filing, dated August 3, 2026, covers the company’s operations across India and includes reasonable assurance on core indicators by BDO India Services Private Limited. For investors and stakeholders, the report signals the company’s progress in resource efficiency, particularly through its full adoption of Zero Liquid Discharge (ZLD) systems and renewable energy integration, which are critical for long-term operational resilience in the steel sector.

The submission was made pursuant to Regulation 34(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Birendra Kumar Jain, Company Secretary & Compliance Officer, certified the document. The report encompasses the company’s wholly owned subsidiary Shyam Sel and Power Limited, Ramsarup Industries Limited, and Shree Venkateshwara Electrocast Private Limited, among others. BDO India Services Private Limited provided reasonable assurance on the BRSR Core Indicators, concluding that the non-financial sustainability disclosures are fairly reliable in all material respects.

Operational and Financial Overview

Shyam Metalics reported a total turnover of ₹18,552.21 crore and a net worth of ₹10,499.60 crore for FY26. The company operates 8 plants and 17 offices across India, serving customers in 25 states and 40 countries. Exports accounted for 10.63% of the total turnover, with ferro alloys and stainless steel being the major export products. Carbon steel remained the largest revenue contributor at 39.44% of the turnover, followed by pig iron at 12.08% and sponge iron at 11.50%.

Environmental Initiatives and Resource Management

The company highlighted significant strides in environmental stewardship. All manufacturing units now operate under a Zero Liquid Discharge (ZLD) framework, supported by two wastewater treatment plants with capacities of 3,000 KLD and 4,000 KLD. Treated water is reused internally or for gardening, eliminating untreated discharge. Additionally, a solarization project with a capacity of 1.085 MWp reduces CO2 emissions by 12.5 lakh kilograms annually. The company also installed 63.976 MW of solar power (rooftop and floating), generating 6,27,96,611 MJ of renewable energy.

Waste management practices include repurposing fly ash into eco-friendly bricks and using slag for cement and road construction. Hazardous waste, such as used oil and spent resin, is disposed of through authorized channels. The company noted that the rise in energy consumption, water usage, air emissions, and waste generation in FY26 is attributable to the inclusion of four new manufacturing sites in its reporting boundary.

Social Governance and Employee Well-being

As of the end of FY26, the company employed 4,845 permanent employees and 5,419 permanent workers. Female representation stood at 3.94% among employees and 0.30% among workers. The Board of Directors included one female member, representing 9% of the total board. The company maintains an occupational health and safety management system aligned with ISO 45001 standards, covering 100% of its operations. No fatalities or high-consequence work-related injuries were reported.

Corporate Social Responsibility (CSR) initiatives focused on healthcare, skill development, and environment sustainability in Odisha and West Bengal. The company spent ₹939.00 lakh in Sambalpur, Odisha, and ₹1,223.00 lakh in Bardhaman, West Bengal, benefiting over 94,000 individuals, with 41% from vulnerable and marginalized groups.

What the Numbers Show

The expansion of the reporting boundary to include four new manufacturing sites explains the year-on-year increase in absolute environmental metrics such as energy consumption, water usage, and GHG emissions. However, the implementation of ZLD across all plants and the generation of over 627 million MJ of renewable energy indicate a strategic shift toward decoupling growth from resource intensity. The company’s focus on circular economy principles, such as waste-to-resource models for fly ash and slag, further underscores its commitment to sustainable industrial practices.

Shyam Metalics and Energy Limited delivered robust consolidated financial results for FY2025-26, with revenue from operations rising 22% to ₹18,552 crore from ₹15,138 crore in the previous year. Profit after tax grew 16.60% to ₹1,060.17 crore from ₹909.26 crore, while operating EBITDA expanded 25% to ₹2,333.14 crore. Sales volumes rose 26% to 4.94 million tonnes, and the company reduced its working capital cycle from 22 days to 9 days during the year, reflecting improved inventory management and receivables discipline.

Key Financial Performance

The following table summarises the company's consolidated financial highlights for FY26 versus FY25:

The standalone business also recorded growth, with total income rising to ₹7,103.8 crore from ₹6,623.7 crore in the prior year. Standalone PAT increased 12.91% to ₹552.9 crore, and standalone operating EBITDA rose from ₹921.34 crore to ₹1,033.92 crore.

Operational Highlights and Segment Performance

On a consolidated basis, production increased from 10.67 MTPA to 12.13 MTPA, a growth of approximately 13.68% year-on-year, while sales increased from 3.94 MTPA to 4.94 MTPA, a growth of 25.38%. Standalone steel production rose 9.66% year-on-year to a record 5.45 MTPA from 4.97 MTPA in FY25, with steel product sales reaching 2.35 MTPA, an increase of 17.50% from 2.00 MTPA.

Key operational milestones during FY26 included:

• The Pig Iron plant at Jamuria achieved 100% utilisation in FY26
• The Colour-Coated facility reached 71% utilisation within its first full year, developed with an investment of ₹603 crore
• Phase 2 of the Cold Rolling Mill complex at Jamuria commenced operations in April 2026 across a 55-acre facility
• Stainless steel volumes grew 11.5% while realisation improved by 6.7%
• Speciality alloys delivered 11.9% volume growth
• Aluminium foil realisation per tonne improved 10.4%
• Fixed assets grew from ₹6,356.68 crore to ₹8,134.01 crore over the year
• Power generation was 375 MW in FY26 against 333 MW in FY25

Installed Capacity

The following table summarises the company's installed capacities across key business segments:

Capital Expenditure and Balance Sheet

Against a total planned capex of ₹16,086 crore, the company had incurred ₹8,630 crore on a consolidated basis during the period under review, of which ₹6,136 crore has been capitalised. The remaining ₹2,494 crore has been deployed into assets that are commissioning, ramping, or approaching steady-state production. The Board has approved a fresh capex of ₹2,700 crore comprising a ₹900 crore Special Bar Quality (SBQ) Mill at Kharagpur and a ₹1,800 crore stainless steel downstream expansion at Sambalpur, both targeting commissioning from FY29 onwards. The aggregate capital investment programme over the next 3-4 years stands at approximately ₹10,155 crore, intended to be funded entirely through internal accruals. Shareholders have also approved a ₹7,500 crore enabling resolution for future opportunities.

The balance sheet remained strong, with gross debt of ₹957 crore against a net worth of ₹10,499.60 crore and total investments of ₹1,335 crore exceeding gross debt. CRISIL upgraded the company's long-term credit rating to AA+/Stable in November 2025, with the short-term rating reaffirmed at A1+.

Key Financial Ratios

Dividend and AGM

The Board declared an interim dividend of ₹1.80 per equity share on July 22, 2025, which was paid on August 2, 2025. The Board has recommended a final dividend of ₹2.70 per equity share for FY2025-26, subject to shareholder approval at the 24th Annual General Meeting scheduled for August 25, 2026 via video conferencing. The record date for the final dividend is Tuesday, August 18, 2026.

CSR and ESG

During FY26, the company invested ₹21.62 crore towards community development initiatives through the Shyam Metalics Foundation, positively impacting communities across its operating regions. Key CSR metrics included 95,000 free OPD visits annually, 38,397 residents provided safe drinking water, and support for over 1,00,000 cattle. The company maintained Zero Liquid Discharge systems across all plants, generated 6,27,96,611 GJ of renewable energy, and planted over 1,00,000 trees. Renewable energy usage stood at 18.50%, and the company avoided over 35,000 tonnes of CO₂ emissions annually.