Shyam Metalics Q1: consolidated PAT up 21% YoY to ₹351 Cr as new capacity lifts volumes

Shyam Metalics reported a solid, volume-led first quarter of FY27. Consolidated revenue rose to ₹5,455 Cr, up ~23% YoY (from ₹4,419 Cr) and ~4% sequentially, while consolidated PAT grew ~21% YoY to ₹350.73 Cr (₹290.67 Cr a year ago) and ~13% QoQ from ₹311.54 Cr. There were no exceptional items on either side, so the reported growth is also the underlying growth — a clean 20%-plus print rather than a one-off flattered number. Basic EPS was ₹12.60 (consolidated); standalone PAT was ₹138.96 Cr, confirming that subsidiaries — chiefly Shyam Sel & Power — now generate the bulk of group profit.

The margin bridge is the nuance. Operating profitability expanded — EBITDA of ₹812 Cr implies an OPM near 14.9%, up from ~14.3% a year ago — but net margin was roughly flat-to-slightly-lower at ~6.4% (vs ~6.5% YoY), because the newly commissioned lines carry higher fixed costs before they fully load: depreciation jumped to ₹248.5 Cr (from ₹204.5 Cr) and finance costs nearly doubled to ₹78.3 Cr (from ₹39.8 Cr). So PAT growth (21%) trailed revenue growth (23%) marginally — the squeeze sits below the operating line, on D&A and interest, exactly what you'd expect while CRM, aluminium and iron-making capacity ramps.

The stock went into the print at ₹1,081, up 10.9% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.

Against the last concall's ~30% full-year growth guide, Q1's +23% revenue is on-track but running modestly below that pace early in the year; management framed the 30% as driven by volume ramp-up from the new facilities, and independent Q1 volume data corroborates the direction (pig iron volumes up ~42% YoY, pellet volumes surging post-stabilisation). No formal quarterly PAT consensus was published for this print; brokerage price targets had been trimmed to ~₹1,012, with the near-term view explicitly contingent on Q1 meeting expectations — a 20%-plus clean profit growth should not disappoint that bar. Steel and allied products remains the sole reportable segment.