Shyam Metalics and Energy Limited has secured strategic mining rights for the Phutamura Coal Block in Chhattisgarh through an investment in Alom Solar Private Limited, the successful bidder for the asset.

The coal block is located in the Raigarh District within the Mand Raigarh coalfield and spans approximately 7.324 sq. km. It holds estimated coal reserves of 170 million tonnes, with mining operations and production expected to commence from July 2027.

Strategic backward integration

This development serves as a crucial backward integration initiative for Shyam Metals Group. The move aims to secure a stable, long-term, and cost-effective coal supply to support captive power generation and core steel manufacturing processes. By locking in these raw material reserves, the company reinforces its commitment to operational self-sufficiency and sustainable growth.

Brij Bhushan Agarwal, Chairman & Managing Director of Shyam Metalics, stated that securing high-quality, long-term raw material linkages is paramount as the company scales its manufacturing capabilities. He noted that the reserves significantly strengthen the backward integration framework, ensuring uninterrupted fuel security for captive power plants and steel operations.

What the numbers show

The acquisition of 170 million tonnes of reserves provides a long-term resource buffer against market volatility in coal prices. Given the company's existing installed capacity of 467 MW in captive power plants and 16.93 MTPA in metal capacity, this vertical integration directly addresses input cost stability. The timeline of July 2027 suggests a medium-term impact on cost structures, allowing the company to plan capacity expansion with greater certainty regarding energy inputs.

About Shyam Metalics

Shyam Metalics is an integrated metal-producing company based in India, focusing on Long & Flat Steel Products, Ferro Alloys, Aluminium, and Stainless Steel. The company possesses a market capitalization of more than ₹30,000 crore and is among the largest producers of ferro alloys by installed capacity in India.

Shyam Metalics & Energy reported a strong volume-led performance in its sales release for the quarter ended September 30, 2026 (Q2FY27). The company witnessed significant growth in metallics and carbon steel flat products, driven by higher demand and improved capacity utilization.

While overall volumes expanded across key segments, average realizations showed mixed trends. Stainless steel and speciality alloys saw robust year-on-year growth in both quantity and price realizations, whereas aluminium foil volumes contracted despite higher prices.

Segment-wise Performance

The following table summarizes the consolidated sales performance for Q2FY27 compared to Q1FY27:

Key Highlights

• Metallics: Sales volume rose 54.89% YoY to 3,14,238 MT in September FY27. On a quarterly basis, volumes increased 11.13% to 9,43,020 MT, though average realization declined 9.26% QoQ to ₹20,325 per MT.
• Carbon Steel (Flat): This segment showed exceptional growth with volumes surging 164.38% YoY in September. Quarterly volumes jumped 64.50% to 81,493 MT, while realizations dipped slightly by 1.96% QoQ.
• Stainless Steel: Volumes grew 35.06% YoY in September and 28.45% QoQ for the quarter. Average realizations increased marginally by 0.70% QoQ to ₹1,77,156 per MT.
• Speciality Alloys: The segment recorded a 16.17% YoY increase in volumes for September. Quarterly volumes rose 10.11%, supported by a 5.80% QoQ improvement in realizations to ₹1,12,792 per MT.
• Aluminium Foil: Volumes contracted 19.10% YoY in September and 3.08% QoQ for the quarter. However, average realizations strengthened, rising 26.14% YoY and 2.64% QoQ to ₹4,96,215 per MT.
• Carbon Steel (Long): Volumes declined 8.37% YoY in September and 4.49% QoQ for the quarter. Despite lower volumes, realizations improved significantly, up 12.95% YoY and 6.84% QoQ to ₹43,723 per MT.

What the Numbers Show

The divergence between volume growth and realization trends highlights a shift in product mix and market dynamics. While Metallics and Carbon Steel (Flat) drove substantial volume expansion, their average realizations faced pressure or remained flat on a quarterly basis. Conversely, Speciality Alloys and Stainless Steel maintained stable to positive price trends alongside volume growth, suggesting stronger pricing power in these value-added segments compared to commodity-like intermediates.