SHYAMMETL Q2 FY27 Results Analysis: EBITDA Surges 41%, ED Attachment Weighs
SHYAMMETL's Q2 FY27 numbers came in strong, with revenue of Rs. 5,960.19 Cr (+33.42% YoY) and PAT growth of +88.47% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 31, 2026 |
|---|---|
| Revenue (Q2) | Rs. 5,960.19 Cr (+33.42% YoY) |
| PAT (Q2) | Rs. 493.35 Cr (+88.47% YoY) |
| EBITDA margin | 14.38% (+76 bps YoY) |
| EPS (Q2) | Rs. 18.36 (+96.15% YoY) |
Quarter Snapshot
Q2 FY27 delivered 33.42% YoY revenue growth and 40.85% YoY EBITDA growth with operating margin up 174 bps YoY, tracking management's FY27 EBITDA growth guidance of >20% with H2 needing only +6.15% YoY to achieve it. Reported PAT growth of 88.47% is flattered by a depreciation-method change worth ~Rs.133 crore tax-effected; the normalized +37.54% YoY still outpaces revenue. Watch items are the confirmed ED/PMLA attachment of Rs.152.48 crore at SSPL, rising finance costs (+76.28% YoY), and working-capital-funded capex.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "volumes and realizations trending ahead of the year-ago quarter, which itself was the weakest margin quarter" | Revenue +33.42% YoY | Played out |
| Margins | "margins look more likely flat-to-expanding YoY" | Operating margin 13.81% vs 12.07% YoY (+174 bps); −22 bps QoQ — YoY); marginally soft QoQ | Played out |
| Coking-coal/rupee squeeze | "the main compression risk — concentrated at the quarter's exit and into Q3" | Cost-of-materials ratio improved QoQ; finance costs +76.28% YoY — no Q2 cost spike; funding cost drag real | Partially |
| ED/PMLA | "confirmation... still awaited" | Confirmed 9-Oct-2026 per filing note (filing wins) — developed post-quarter | Partially |
| H1 segment-target checkpoint | "H1 progress is the checkpoint" | Single-segment filing — not derivable | Not observable |
| Capex pace | "watch H1 deployment" | Rs.1,844.38 H1 vs Rs.2,900 FY27 target | Played out |
| Wagons/aluminium commissioning; QIP timing | first updates due | Not addressed in the filing — remains open for the call | Not observable |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 EBITDA growth >20% YoY ("internal projections over 25%") | Q1 FY27 earnings call, Jul 2026 | H1 EBITDA incl. OI +34.45% YoY; operating EBITDA +41.93% | On Track |
| EBITDA margin "around 14% to 15%" (long-term, described as "very conservative") | Q1 FY27 earnings call, Jul 2026 | Q2: 14.38% incl. OI / 13.81% operating — inside band on the incl.-OI basis; just below on operating | On Track |
| Debt-to-equity "will not exceed 0.5x" | Q4 FY26 earnings call, May 2026 | 0.108x at 30-Sep-26 | Met |
| Capex Rs.2,900 Cr in FY27 | Q4 FY26 earnings call, May 2026 | Rs.1,844.38 in H1 | On Track |
| QIP completion within 365 days | Board approval, 20 Jul 2026 | No execution update | Too Early |
Key Investment Insights
Key Positives
- Revenue grew 33.42% YoY to Rs.5,960.19 crore, the seventh consecutive quarter of sequential growth
- EBITDA including other income grew 40.85% YoY to Rs.857.17 crore; operating EBITDA grew 52.57% YoY
- Operating EBITDA margin expanded 174 bps YoY to 13.81% (14.38% including other income)
- PAT attributable to owners grew 88.47% YoY to Rs.493.35 crore; normalized WDV-basis growth was 37.54% YoY
- H1 CFO of Rs.1,544.46 crore was 1.79x PAT, up 149.18% YoY
- Cost of materials improved to 73.83% of revenue from 77.26% in Q1, defying the coking-coal/rupee squeeze risk
- Debt-to-equity at 0.108x, well inside management's 0.5x cap
- H1 capex of Rs.1,844.38 crore on track against the Rs.2,900 crore FY27 target
Risk Factors
- Depreciation method change (WDV to SLM) reduced Q2 D&A by Rs.171.77 crore, flattering reported PAT by ~Rs.133 crore tax-effected; normalized owners' PAT is Rs.360.03 crore
- Finance costs rose 76.28% YoY to Rs.88.67 crore, consistent with capex-cycle funding build
- ED/PMLA attachment of Rs.152.48 crore of investments at subsidiary Shyam SEL and Power Ltd was confirmed by the Adjudicating Authority on 9 October 2026; appeal filed
- Free cash flow was negative at −Rs.299.92 crore in H1 amid peak capex
- Other income fell 50.60% YoY to Rs.34.15 crore
- Nine subsidiaries (total assets Rs.757.13 crore, H1 net loss Rs.4.59 crore) were not reviewed by the group auditor
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.