Shera Energy H1 revenue crosses Rs 1,000 crore as PAT doubles

Shera Energy Limited crossed Rs 1,000 crore of half-year revenue for the first time in H1 FY27, reporting consolidated revenue of Rs 1,047.40 crore and profit after tax of Rs 30.77 crore, up 34.2% and 102.3% year on year respectively. Management attributed the faster profit growth to product mix, in-house recycling, capacity utilisation and working-capital discipline.

How did Shera Energy perform in H1 FY27?

Shera Energy delivered its highest first-half revenue and profit figures in H1 FY27, with revenue from operations rising to Rs 1,047.40 crore from Rs 780.65 crore in H1 FY26. The company crossed the Rs 1,000 crore half-year revenue threshold for the first time, supported by demand from transformer and power-equipment manufacturers and higher utilisation of existing capacity.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased faster than revenue. EBITDA rose 70.9% year on year to Rs 70.78 crore, while profit after tax, or PAT, increased 102.3% to Rs 30.77 crore. The difference between the 34.2% revenue increase and 102.3% PAT increase shows that profit expanded at about three times the pace of sales during the period.

The H1 FY27 result was achieved mainly through existing operations, according to management. New value-added product lines had only begun contributing during the half year, while Shera Zambia Limited had completed a trial batch but had not started commercial operations. That timing distinguishes the reported first-half numbers from the company’s future expansion plans.

Why did Shera Energy's margins expand faster than revenue?

Shera Energy said its EBITDA margin increased by 146 basis points to 6.76% and its PAT margin rose by 99 basis points to 2.94% in H1 FY27. Management said the expansion came despite volatile London Metal Exchange copper prices, citing a multi-metal product capability, recycling operations and controlled working capital as the main operating mechanisms.

The company works across copper, aluminium and brass, allowing it to serve customers when their material requirements shift between metals. Management said in-house recycling improved control over input costs, while disciplined working-capital management supported volume growth without putting pressure on margins. These are management explanations rather than separately quantified segment contributions.

The revenue base also reflects demand from transformers and power equipment, which management described as robust and broad-based in H1 FY27. India’s transmission network is expected to receive about Rs 9.15 lakh crore of investment by 2032, according to the company’s call commentary, while planned transformation capacity is expected to reach 2,342 gigawatts. Shera Energy linked those industry conditions to demand for winding wires and conductors.

Management reported an average monthly order book of about Rs 200 crore during the period. In the question-and-answer session, the chairman said internal monthly sales had moved from about Rs 150 crore in earlier months to Rs 176 crore, and roughly Rs 200 crore in the latest couple of months. He added that revenue remains affected by metal-price movements, although higher volumes could moderate that impact.

Which new businesses can add to Shera Energy's output?

Shera Energy has begun commercial production of superfine enamelled wire, photovoltaic, or PV, ribbon wire and busbar at Shera Metal, while continuously transposed conductor, or CTC, trials are complete. Management said the first commercial CTC order had been executed and targeted full-scale CTC production by the end of FY27.

CTC is used in large power transformers, including up to the 765 kilovolt class, and management described the product as an import-substitution opportunity because India still largely imports it. The company did not disclose revenue from the new Shera Metal lines in H1 FY27, saying that value-added products had only just begun to contribute to the reported half-year performance.

At listed subsidiary Rajputana Industries, the group added about 4,950 metric tonnes per annum of capacity at Reengus for nickel-iron alloy, copper cables, wires and aluminium. That addition includes 2,400 metric tonnes per annum of nickel-iron alloy capacity and 36,000 kilometres per annum of cable and conductor capacity. Management said both additions had entered commercial production.

The group’s consolidated installed capacity consequently rose to about 51,700 metric tonnes from 46,750 metric tonnes. Rajputana contributed about Rs 453 crore of revenue and about Rs 10 crore of PAT in H1 FY27. Management said nickel alloys move Rajputana into a specialty niche beyond commodity products, although it did not provide margins or volume data for that business.

What are Shera Energy's plans for Zambia and overseas markets?

Shera Energy plans to begin commercial operations at Shera Zambia Limited in Q4 FY27 after producing and selling an 8.6-metric-tonne trial batch of 99.99% pure copper cathode. The Zambia subsidiary is 99.5% owned by the company and operates in the Copperbelt region, closer to a source of copper, its largest raw-material cost.

The Zambia project’s Phase 1 capacity is 1,200 metric tonnes per annum, with potential to scale to 5,000 tonnes, according to management. Management’s stated priority is to demonstrate that the business can source, process and sell consistently at commercial scale. The project did not contribute commercial production in H1 FY27, so its future revenue effect remains dependent on that planned Q4 FY27 start.

The board also approved incorporation of a wholly owned Dubai subsidiary for trading and warehousing of non-ferrous metals, electrical equipment and raw materials, subject to Indian and United Arab Emirates regulatory approvals. Management said Dubai could support international customer service, raw-material sourcing and exports beyond the more than 15 countries Shera Energy already serves.

On funding, Shera Energy allotted 45 lakh convertible warrants on 14 July 2026 at Rs 118 each, aggregating to Rs 53.10 crore on a preferential basis. Acuité upgraded the company’s long-term rating to A- with a stable outlook and its short-term rating to A2+ on 15 July 2026. Management said these developments improve financial flexibility for the next growth phase, while also identifying leverage, working capital, financing cost and returns as execution areas to monitor.

Conclusion

Shera Energy’s H1 FY27 figures show a material change in earnings growth relative to revenue: sales rose 34.2%, while EBITDA rose 70.9% and PAT rose 102.3%. Margin expansion to 6.76% at the EBITDA level and 2.94% at the PAT level occurred alongside higher capacity utilisation, recycling and multi-metal operations, according to management.

The next disclosed milestones are full-scale CTC production by the end of FY27 and commercial production in Zambia in Q4 FY27. Management is also working toward 20% to 30% annual revenue growth by FY30 through capacity, value-added products and exports, while formalities for migration to the National Stock Exchange main board and BSE remain underway.