Shyam Metalics & Energy , a prominent player in the metals and energy sector, has reported financial results for the second quarter and half year ended September 30, 2025, demonstrating robust performance and financial strength.

Financial Highlights

• Credit Rating: Upgraded from AA (Positive) to AA+ (Stable) by CRISIL

Performance Analysis

Shyam Metalics has demonstrated strong financial performance in the second quarter of FY2026. The company's ability to generate substantial revenue and maintain profitability is particularly noteworthy in the current market environment.

The credit rating upgrade by CRISIL from AA (Positive) to AA+ (Stable) reflects the company's strong financial position and prudent capital management. This upgrade may potentially lead to improved borrowing terms and enhanced investor confidence.

Corporate Governance

The Board of Directors has approved several key decisions:

1. Director Re-appointment: Ms. Rajni Mishra has been approved for re-appointment as an Independent Director for a second five-year term, from February 12, 2026 to February 11, 2031, subject to shareholder approval.

2. Postal Ballot: A postal ballot notice has been approved to seek member approval for:

   • The re-appointment of Ms. Rajni Mishra
   • Revision in remuneration of whole-time directors

These decisions underscore the company's commitment to maintaining strong corporate governance practices and ensuring continuity in leadership.

Outlook

The strong financial results, coupled with the credit rating upgrade, position Shyam Metalics favorably. The company's ability to maintain robust revenue and profitability is a positive indicator for its performance.

However, it's important for investors to consider the broader market conditions and potential challenges in the metals and energy sectors. Market dynamics and global economic factors will play a crucial role in the company's ongoing performance.

Investors and market analysts will likely monitor how Shyam Metalics maintains this growth trajectory and financial strength in the coming quarters, as well as the outcomes of the upcoming shareholder votes.

Shyam Metalics & Energy Limited (SMEL), a leading integrated multi-metal producer in India, has received a significant boost to its credit profile. CRISIL Ratings has upgraded the company's long-term credit rating to 'CRISIL AA+/Stable' from 'CRISIL AA/Positive', while reaffirming its short-term and commercial paper ratings at 'CRISIL A1+'.

Key Highlights of the Rating Upgrade

• The upgrade covers total bank loan facilities of Rs 3,600 crore.
• CRISIL's rating action reflects SMEL's strong financial profile, prudent capital structure, robust liquidity, operational efficiencies, and consistent business growth.
• The company reported a consolidated EBITDA of Rs 1,868 crore with an EBITDA per tonne of Rs 4,797.
• CRISIL expects the blended consolidated EBITDA per tonne to increase to more than Rs 5,000 in the future.

Financial Strength and Operational Excellence

SMEL has demonstrated impressive financial metrics, showcasing its robust financial health:

The company maintains strong financial metrics with a total outside liabilities to tangible net worth ratio of 0.45 times and an interest coverage ratio of over 14 times.

Expansion Plans and Future Outlook

SMEL has outlined growth plans:

• The group plans capital expenditure of Rs 6,500-7,000 crore over the next three years.
• This expansion is expected to be funded through internal accruals, highlighting the company's strong cash generation capabilities.
• The company aims to increase its total combined capacity to 21 MTPA, focusing on value-added products and diversification.

Product Diversification and Market Position

SMEL's product mix demonstrates its diversified portfolio:

• Pellets: ~4.2% of sales
• Sponge iron: ~14.5%
• Carbon steel: ~47.8%
• Ferro alloys: 11.6%
• Stainless steel: ~7.5%
• Aluminium foils: ~4.8%
• CR coil: 2.7%
• Pig iron: 5.5%

The company's strategic focus on increasing the share of finished and value-added products is expected to drive future growth and profitability.

Operational Efficiency and Integration

SMEL's operations benefit from:

• Integrated presence across the steel value chain
• Captive power and waste heat recovery plants
• Coal washery and railway sidings
• Low power costs with captive power contributing ~80% of requirements

These factors contribute to SMEL's cost efficiency and operational excellence.

Conclusion

The CRISIL AA+/Stable rating underscores Shyam Metalics and Energy Limited's strong position in the Indian steel sector. With its robust financial profile, strategic expansion plans, and focus on operational efficiency, SMEL is well-positioned for sustained growth in the competitive metal industry. Investors and stakeholders can take confidence in the company's solid foundation and promising outlook.