Shyam Metalics Q2: PAT ₹511 Cr (+96% YoY, ~45% adjusted) on strong volumes, margin gains

Shyam Metalics' consolidated PAT came in at ₹510.99 Cr (owners' share ₹493.35 Cr) for Q2 FY27, up 96.2% YoY and 45.7% QoQ, on revenue from operations of ₹5,960.19 Cr (+33.7% YoY, +9.3% QoQ). YoY is the primary read here, and on that basis the headline PAT number is flattered: effective 1 July 2026 the company switched its depreciation method from Written Down Value to Straight-Line, cutting consolidated Q2 D&A by ₹171.77 Cr versus what the old method would have charged. Stripping that one-off out, adjusted PAT growth is closer to ~45% YoY (~8% QoQ) — still strong, but roughly half the reported figure. The underlying operating print, which isn't touched by the depreciation change, was genuinely solid: EBITDA rose 40.9% YoY to ₹857.17 Cr, with OPM (EBITDA ex-other income/revenue) expanding to 13.81% from 12.10% a year ago, though it eased slightly from 14.03% last quarter.

Revenue growth was volume-led — company data shows 26% YoY volume growth for the quarter, matching the volume target embedded in management's FY27 guidance (20%+ EBITDA growth on a 25% volume target). H1 FY27 EBITDA of ₹1,669.55 Cr is up 34.5% YoY, running ahead of that 20%+ guidance, so the quarter is tracking on or ahead of plan on an operating basis even after backing out the depreciation tailwind. Consolidated and standalone results diverge sharply, however: standalone revenue grew just 13.2% YoY to ₹1,894.77 Cr and standalone PAT 46.1% YoY to ₹198.13 Cr, both well below the group numbers — the bulk of this quarter's growth is coming from subsidiaries and JVs, not the parent entity, so readers comparing the standalone print will see a materially slower-growing company.

The stock went into the print at ₹1,162.9, up 8.1% 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 3 consecutive quarters; revenue is at a 6-quarter high.

Basic EPS ₹18.36 (consolidated) vs ₹9.36 YoY / ₹12.60 QoQ

Our pre-result preview had flagged ~26% volume growth and 35–40% revenue growth YoY as the bar, alongside Street consensus (Goldman Sachs Buy, target ₹1,120; Jefferies Buy, target ₹1,250) framing this as a volume story with execution risk around the Maharashtra greenfield plant. The print lands essentially in line: volume growth matched the 26% watch figure exactly, while revenue growth of 33.7% YoY came in just under the lower end of the expected 35–40% band. Nuvama's pre-quarter caution that steel profitability would soften in Q2 amid lower market prices showed up mildly in the sequential OPM dip (14.03%→13.81%) even as YoY margins still expanded. On corporate developments, the board on 31 October approved the Alom Solar acquisition (51% stake, SMEL's ₹183.6 Cr share of a ₹360 Cr capex budget) for the Phutamura coal block backward-integration project, alongside the previously NCLT-approved subsidiary merger and the induction of an LIC nominee director — none of which are yet reflected in this quarter's numbers.