Shyam Metalics Q1 FY27 Results (NSE: SHYAMMETL)

20 Jul 2026 · Analysis by Alpha Inflection

Signal: Growth decelerated

The read

Consolidated revenue and EBITDA growth remained robust at 23.5% YoY and 28.3% respectively, with EBITDA margin expanding 60bps to 14.9% despite a 290bps increase in raw material cost share — indicating operating leverage on fixed costs. PAT growth of 18.1% was healthy, but the announcement of a ₹4,500 Cr fund-raising plan (potential QIP/FPO) and the ongoing ED investigation on a subsidiary (Shyam Sel) are material overhangs. The standalone vs consolidated gap confirms that group earnings are largely driven by subsidiaries; investors should monitor subsidiary-level risks.

P&L walk

Revenue grew 23.5% YoY on higher volumes; EBITDA margin expanded 60bps to 14.9% as operating leverage on employee/other costs offset a 290bps rise in raw material cost share (to 77.3%); PAT grew slower at 18.1% due to higher finance cost and tax; EPS grew 20.6% benefiting from lower share count effect.

Key positives

• Revenue ₹5,455 Cr (+23.5% YoY) and EBITDA ₹812 Cr (+28.3% YoY) both grew at double-digit pace, driven by volume expansion.
• EBITDA margin expanded 60bps YoY to 14.9% despite raw material cost headwind, reflecting fixed-cost absorption.
• EPS grew 20.6% (₹12.6), outpacing PAT growth of 18.1%, indicating no net dilution and efficient capital structure.

Key concerns

• Raw material cost as % of revenue rose 290bps YoY to 77.3%, creating margin pressure that was partially offset by operational efficiencies.
• The company announced a ₹4,500 Cr fund-raising plan (QIP/FPO), which could dilute equity and increase leverage in the near term.
• ED investigation on subsidiary Shyam Sel and Power (Provisional Attachment Order of ₹152.48 Cr) is a regulatory overhang, though management deems no operational impact.

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