Synopsis:
The shares of the prominent steel manufacturer gained up to 2.3 percent in today’s trading session after the company announced its strategic foray into the crash barrier segment.
With a market capitalization of Rs 25,624.30 crore, the shares of Shyam Metalics and Energy Ltd were trading at Rs 918.00 per share, decreasing around 0.18 percent as compared to the previous closing price of Rs 919.65 apiece.
Foray into a new business Segment
According to the company filing, Shyam Metalics and Energy Ltd has entered the crash barrier segment, targeting an 8–10 percent market share in FY26. Production has begun at its advanced Giridih facility with 24,000 MTPA capacity and a 150-member skilled workforce, reinforcing its diversification strategy and strengthening presence in infrastructure-driven sectors with growing demand for road safety solutions.
Moreover, the company is enhancing its manufacturing footprint with a Rs 50 crore investment in a new crash barrier facility at Sambalpur, adding 60,000 MTPA capacity to cater to South and West markets. Further, in FY26–27, it will invest another Rs 50 crore in Giridih Phase 2 to diversify into transmission line towers, railway electrification structures, solar panel structures, and lighting poles, signaling strategic expansion, broader market reach, and strengthening its position in infrastructure and allied industries.
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Financial & Operating Highlights
Looking forward to the company’s financial performance, revenue increased by 22 percent from Rs 3,612 crore in Q1FY25 to Rs 4,419 crore in Q1FY26. Further, during the same time frame, net profit increased by 5.4 percent from Rs 276 crore to Rs 291 crore.
The company is executing an aggressive Rs 10,000 crore capex plan, with Rs 7,003 crore already spent and Rs 4,900 crore capitalized. In Q1FY26, Rs 419 crore was invested, with Rs 3,485 crore slated for the next two years. Carbon steel capacity will be ready by FY26, while stainless steel and aluminum projects target FY27 commissioning, driving earnings accretion from FY27-28.
Management expects some pricing pressure in Q2 FY26 due to monsoon seasonality but remains confident of sustaining EBITDA margins between 11–13%, supported by volume growth, cost control, and a value-added mix. Emphasizing opportunities amid challenges, the company maintains a revenue CAGR guidance of ~15%, aiming for over 20–25% as achieved historically.
Shyam Metalics is a leading integrated multi-metal company in India, focusing on carbon steel, stainless steel, specialty alloys, and aluminium foil products. Its operations are characterized by an integrated ‘ore to metal’ approach, focusing on innovation, efficiency, and uncompromising quality standards to achieve prominence.
Written by Abhishek Singh
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