Shyam Metalics and Energy Limited reported its consolidated sales performance for May 2026, highlighting a significant surge in Pig Iron volumes alongside a steep decline in Sponge Iron sales. The company disclosed that its blast furnace plant at the Jamuria location, implemented in November 2024 with a capacity of 7.7 lakh tonnes per annum, has been producing consistently over the past few months. This operational ramp-up contributed to Pig Iron sales volumes rising 135.53% year-on-year to 1,00,348 MT, with average realisations increasing 17.44% to ₹39,024 per MT.

In contrast, the Sponge Iron segment faced a sharp downturn, with sales volumes dropping 44.74% year-on-year to 50,894 MT. Average realisations for Sponge Iron improved marginally by 6.53% to ₹25,775 per MT. The company also reported performance data for its other key segments, including Stainless Steel, Aluminium Foil, and Carbon Steel, which showed mixed trends in both volumes and realisations.

Stainless Steel and Aluminium Foil Performance

The Stainless Steel segment recorded a 5.26% increase in sales volumes to 7,367 MT compared to the same period last year. Average realisations in this category jumped 32.09% year-on-year to ₹1,81,356 per MT. However, on a month-on-month basis, sales volumes decreased by 7.08% while realisations rose by 6.55%.

Aluminium Foil sales volumes declined by 24.60% year-on-year to 1,570 MT. Despite the volume drop, average realisations surged 34.65% to ₹4,95,275 per MT. Month-on-month, volumes fell by 16.75% while realisations increased by 9.84%.

Carbon Steel and Pellet Trends

Carbon Steel sales, which include Steel Billet and Long Steel Products, saw a marginal 3.81% decline in volumes year-on-year to 1,37,338 MT. Average realisations improved slightly by 2.25% to ₹46,097 per MT. The Pellet segment reported an 11.87% decrease in sales volumes to 1,12,004 MT, while realisations increased by 5.10% to ₹9,046 per MT.

Speciality Alloys and Value-Added Products

Speciality Alloys experienced an 18.46% drop in sales volumes to 16,201 MT, although average realisations rose 26.49% to ₹1,08,050 per MT. The company also highlighted progress in its colour coated plant at Jamuria, implemented in November 2024, which has begun producing colour coated sheets. This contributed to a 73.32% year-on-year increase in CR Coil/CR Sheets sales volumes to 15,062 MT, with realisations up 19.23% to ₹88,371 per MT.

The HR Tube/Pipe segment, which repurposes leftover side-slitted HR coils from the colour-coated plant, reported a 37.79% decline in volumes to 143 MT. Commercial sales for this unit began on May 25.

Sales Performance Summary for May 2026

Global brokerage firm Jefferies has reaffirmed its bullish stance on shyam metalics & energy , reiterating a Buy rating and raising its target price to ₹1,040 from ₹970. The revised target reflects the brokerage's increased confidence in the company's near-term performance and long-term strategic positioning within India's steel sector.

Strong March Quarter Drives Estimate Upgrades

Jefferies cited a strong March quarter as a key driver behind its revised outlook. On the back of this performance, the brokerage upgraded its FY27–28 EPS estimates by 10–17%, signalling a meaningful improvement in earnings expectations over the medium term. The following table summarises the key parameters of Jefferies' updated assessment:

Healthy Growth Outlook and Long-Term Ambitions

Beyond the near-term earnings upgrades, Jefferies highlighted a healthy overall growth outlook for Shyam Metalics & Energy. The brokerage projects a 14% EPS CAGR over FY26–29, underpinned by the company's capacity expansion strategy and diversification into stainless steel. The company has outlined ambitious plans to double its carbon steel capacity and position itself as a top-3 stainless steel player in India by FY30, reflecting a significant long-term growth agenda in both segments of the steel industry.

Key Investment Highlights

The following points encapsulate the core factors driving Jefferies' positive outlook on Shyam Metalics & Energy:

• Strong March quarter performance supporting near-term earnings momentum
• FY27–28 EPS upgrades of 10–17% reflecting improved earnings visibility
• 14% EPS CAGR projected over FY26–29, indicating sustained medium-term growth
• Plans to double carbon steel capacity as part of long-term expansion
• Target to become a top-3 stainless steel player in India by FY30

Jefferies' revised target price of ₹1,040 and reiterated Buy rating underscore the brokerage's view that Shyam Metalics & Energy is well-positioned to capitalise on India's growing steel demand, supported by its capacity expansion roadmap and improving earnings profile.