Shyam Metalics Q1 FY27 Results Analysis: Revenue Surges 23%, Margin Beats Guidance (SHYAMMETL)

Shyam Metalics & Energy Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 5,455.09 Cr (+23.33% YoY) and PAT growth of +20.66% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Shyam Metalics delivered a strong Q1 FY27 with consolidated revenue up 23% YoY, beating its own guidance of 15-20% growth, and EBITDA margin of 14.89% exceeded the 11-13% target. The business is being driven by new capacities from subsidiaries, which now contribute 71% of revenue. However, finance costs doubled and standalone revenue declined, warranting a watch on leverage.

Key Investment Insights

Key Positives

• Consolidated revenue grew 23.33% YoY to Rs.5,455.09 Cr, exceeding management's guidance of 15-20% YoY growth.
• EBITDA margin expanded to 14.89% (57 bps YoY, 46 bps QoQ), above the stated guidance range of 11-13%.
• Subsidiary operations contributed 70.8% of consolidated revenue, up from 60.4% a year ago, driving a 65.5% increase in subsidiary PAT to Rs.206.11 Cr.
• Operating EBITDA margin (ex-other income) expanded 93 bps YoY to 14.03%, indicating core business improvement.
• PAT grew 20.66% YoY to Rs.350.73 Cr, with basic EPS of Rs.12.60 (up 20.57% YoY).
• No exceptional items were reported, and the audit opinion was unmodified.

Risk Factors

• Finance costs nearly doubled YoY (+96.83%) to Rs.78.30 Cr, reflecting increased borrowings for the capex programme.
• Standalone revenue declined 9.32% YoY, indicating the holding company's core business is under pressure.
• Depreciation rose 29.50% YoY to Rs.264.87 Cr, a drag on net profit.
• Cost of materials consumed as a share of revenue rose 287 bps YoY to 77.26%, reflecting input cost pressure.