Shyam Metalics’ Profit Jumps 88.47% to 493.35 Crore Rupees in September Quarter
Key Facts
Shyam Metalics reported on October 31, 2026, that its consolidated net profit for the quarter ended September 30 rose to 493.35 crore rupees, up 88.47% from 261.76 crore in the corresponding period of 2025. The unaudited results for the second quarter and first half were approved at a board meeting after review and recommendation by the audit committee, with the statutory auditors’ limited review report attached. Profit growth outpaced the increase in sales, which rose 33.42% to 5,960.19 crore rupees from 4,467.40 crore. The results also reflect an improvement in the operating margin, alongside an accounting change that reduced depreciation expense during the quarter. The company also outlined a plan to secure coal supplies through a proposed acquisition of a controlling stake in a company that holds rights to the Phutamura block.
The operating margin was 13.81% in September 2026, compared with 12.07% in September 2025, while profit before tax rose to 658.37 crore rupees from 347.09 crore. The figures show that profit growth exceeded sales growth, with the operating margin widening over the comparison period. The company, however, changed its depreciation method effective July 1, 2026, moving from the written-down value method to the straight-line method. Free Press Journal reported that the change reduced depreciation expense for the period from July 1 to September 30 by 171.77 crore rupees. This accounting effect puts part of the profit increase in context, alongside the improvement in the operating margin and sales growth. Available sources did not attribute profit growth to operating discipline or cost integration, as stated in the earlier draft.
In a move related to securing energy resources, the board gave in-principle approval to acquire a controlling 51% stake in Alom Solar, which holds the rights to the Phutamura coal block in Raigarh district, Chhattisgarh. The company estimated the block’s reserves at about 170 million tonnes. The board approved an initial capital expenditure budget of about 360 crore rupees to develop the mine and prepare it for operations, with Shyam Metalics’ proposed contribution at 183.60 crore, or 51% of the budget. The plan shows the group is seeking to secure long-term coal supplies for its power plants and steelmaking operations. The group had been declared the winning bidder for the block’s mining rights, but that does not mean production has already begun. The group expects mining operations and coal production to start in July 2027.
On the group’s internal restructuring, the Kolkata NCLT bench approved the merger of Shree Venkateshwara Electrocast into Shyam Sel and Power, a wholly owned group subsidiary, on October 16, 2026. The merger is effective retrospectively from April 1, 2024, under the approval order. The move differs from the proposed Alom Solar deal: the former combines two companies within the group, while the latter involves acquiring a stake in a company that holds coal rights. In the market, Shyam Metalics shares rose 1.87% in the October 30 session, before the results announcement, and closed at 1,162.90 rupees. The company announced its results the following day, so the share move reflects the session before the disclosure. The company is scheduled to hold an investor and analyst call on November 2, 2026, at 4 p.m. India time to discuss the second-quarter and first-half results for the periods ended September 30.