Shyam Metalics Q3 PAT drops 25% QoQ to Rs 197 cr

Shyam Metalics and Energy reported a 24.64% quarter-on-quarter (QoQ) decline in consolidated net profit to Rs 197.24 crore in Q3 FY26, compared with Rs 261.76 crore in Q2 FY26.

Revenue from operations declined 1.02% QoQ to Rs 4,421.46 crore for the quarter ended 31 December 2025.

On a year-on-year (YoY) basis, the companys net profit declined marginally by 0.23%, while revenue from operations jumped 17.70% in Q3 FY26.

Total expenses increased 19.20% YoY to Rs 3,934.35 crore in Q3 FY26. The cost of raw materials consumed stood at Rs 3,251.07 crore, registering a growth of 6.77% YoY. Employee benefit expenses amounted to Rs 125.52 crore, up 14.24% YoY.

 

Profit before tax (PBT) stood at Rs 270.04 crore in the December quarter, up 2.64% from Rs 263.09 crore recorded during the same period last year.

EBITDA stood at Rs 539 crore, registering a growth of 6.3% from Rs 507 crore in the corresponding quarter last year. However, the EBITDA margin declined to 12.2% in Q3 FY26 from 13.5% in Q3 FY25.

On a nine-month basis, the companys consolidated net profit increased 8.96% YoY to Rs 751.15 crore, while revenue jumped 20.89% YoY to Rs 13,311.85 crore in 9M FY26 compared with 9M FY25.

Brij Bhushan Agarwal, chairman & managing director said Shyam Metalics has delivered another exceptional quarter, with Q3 FY26 delivering a strong 25% volume growth and 18% growth in revenues. Over the nine months, we have achieved significant growth in both topline and EBITDA, reflecting the effectiveness of our strategic initiatives and our sustained focus on operational excellence in a constantly evolving market environment.

We continue to expand our share of value-added products, further strengthening our competitive position and improving our profitability. This underscores our ability to execute with precision and agility. I am also pleased to announce that the board has approved fresh capital investment of Rs. 6,660 crores to drive value-added growth and enhance margins. The planned CAPEX will be directed towards capacity expansion and strengthening the Companys integrated operating model. These investments are aligned with our strategy of deepening backward integration, improving cost competitiveness and building scale to support the next phase of growth.

During the quarter, we successfully commissioned and commenced commercial production of 0.45 MTPA blast furnace at our Kharagpur plant. This milestone significantly enhances our steelmaking capacity. Strengthens our integrated manufacturing footprint and supports our long-term growth ambitions.

With disciplined execution, prudent capital allocation and strategic diversification, we are confident of closing FY26 on a strong note. Our continued focus on innovation and financial discipline will guide us to shape our growth momentum and strengthen our position as an industry leader.

Meanwhile, the companys board of directors has approved the voluntary liquidation of Shyam Metalics International DMCC (SMIDMCC), a wholly owned subsidiary of Shyam SEL and Power Limited (SSPL) and a step-down subsidiary of the company, incorporated in Dubai, UAE. The decision was taken as the proposed business activities of SMIDMCC could not be materialised due to prevailing geopolitical uncertainties. Since its incorporation, SMIDMCC has remained non-operational and has not commenced any business activities. Consequently, the entity continues to incur recurring operational and statutory compliance costs without generating any commercial or strategic benefits, rendering it financially and strategically unviable.

In addition, the Board has approved the appointment of Subrata Bhattacharya as an additional director in the Independent category, not liable to retire by rotation, for a period of five consecutive years, commencing from 1 February 2026 to 31 January 2031. The company affirmed that the director is not debarred from holding the office of director by virtue of any SEBI order or any other authority.

Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. The company is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.

The counter rose 1.38% to Rs 789.35 on the BSE.

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