Shyam Metalics has Rs 8,863 crore capex pending for expansion

Shyam Metalics has incurred Rs 4,282 crore of a Rs 13,145 crore pending-installation programme, leaving Rs 8,863 crore to deploy as of 30 September. Its Rs 5,400 crore, 1.58 million tonnes per annum hot-strip mill is the largest project, with Rs 4,380 crore pending, ahead of Rs 2,155 crore across stainless-steel projects.

What is the size of Shyam Metalics' pending expansion programme?

Shyam Metalics' pending-installation programme has a Rs 13,145 crore budget, with Rs 4,282 crore incurred and Rs 8,863 crore pending as of 30 September. The schedule covers carbon-steel intermediates, long and flat products, power infrastructure, stainless steel, ferro alloys and aluminium. Carbon-steel and other projects account for Rs 9,705 crore of the budget, compared with Rs 3,440 crore for stainless steel, ferro alloys and aluminium.

The project schedule is separate from Shyam Metalics' broader capital-expenditure disclosure since listing. The company reported Rs 9,921 crore of capex incurred since listing, equal to 53% of its Rs 18,785 crore total planned capex, as of Q2 FY27. Of that incurred amount, Rs 6,671 crore had been capitalised, while the Rs 13,145 crore list identifies projects pending installation.

Which Shyam Metalics project needs the most remaining capital?

Shyam Metalics' 1.58 million tonnes per annum hot-strip mill requires the most remaining capital, at Rs 4,380 crore. The project has a Rs 5,400 crore budget and had incurred Rs 1,020 crore as of 30 September. It sits in the flat-products group, where the combined Rs 5,600 crore budget had Rs 4,492 crore still pending.

The same flat-products group includes a railway-wagon project with a Rs 200 crore budget, Rs 88 crore incurred and Rs 112 crore pending. The Kharagpur wagon facility is planned for 4,800 units and is being developed through step-down subsidiary Ramsarup Industries Ltd., with Phase I operations expected to commence soon. In long products, Rs 1,022 crore remains pending, including Rs 746 crore for the 0.80 million tonnes per annum special bar quality, or SBQ, mill.

How much is Shyam Metalics spending on stainless steel and aluminium?

Shyam Metalics has budgeted Rs 2,830 crore for stainless-steel projects, of which Rs 675 crore had been incurred and Rs 2,155 crore remained pending as of 30 September. The stainless-steel hot-strip mill has Rs 364 crore pending from a Rs 700 crore budget. The hot rolling, annealing and pickling line has Rs 795 crore pending from a Rs 800 crore budget, while the stainless-steel melt shop had incurred Rs 120 crore of its Rs 300 crore allocation.

Aluminium projects are closer to completion in the listed programme. Shyam Metalics had incurred Rs 515 crore against a Rs 550 crore aluminium budget, leaving Rs 35 crore pending. This includes Rs 436 crore on the Rs 450 crore aluminium flat-rolled-products project, Rs 56 crore on the Rs 75 crore mill with caster and Rs 23 crore on the Rs 25 crore battery-foil plant. The aluminium foil facility was commissioned in July 2026, while the flat-rolled-products facility was described as likely to be commissioned soon.

How are Shyam Metalics' carbon-steel capacity and sales expected to change?

Shyam Metalics expects carbon-steel intermediate capacity to increase to 9.62 million tonnes per annum after expansion from 6.28 million tonnes per annum currently, a stated increase of 53%. The additions include the 1.58 million tonnes per annum hot rolling mill, alongside expansions in sponge iron, pig iron and billets. Management's FY31E estimate shows intermediate-product sales volume of 3.37 million tonnes per annum, compared with 2.89 million tonnes per annum in FY26.

Finished carbon-steel capacity is expected to rise to 3.36 million tonnes per annum from 2.47 million tonnes per annum, while management expects finished-steel sales volume to reach 3.07 million tonnes per annum in FY31E from 1.72 million tonnes per annum in FY26. The sales estimate includes long steel, flat steel and the new SBQ category. The company also expects FY31E railway-wagon sales volume of 4,704 units against planned capacity of 4,800 units.

What power investments does Shyam Metalics' expansion include?

Shyam Metalics has Rs 654 crore pending in power and related infrastructure, comprising Rs 248 crore for captive power and Rs 406 crore for solar power. The captive-power project has a Rs 930 crore budget, with Rs 682 crore incurred, and is designed to add 210 megawatts. Captive-power capacity is listed to rise to 677 megawatts after expansion from 467 megawatts in H1 FY27.

The solar project has 87 megawatts of planned capacity, but only Rs 4 crore of its Rs 410 crore budget had been incurred as of 30 September. Shyam Metalics reported that captive plants supplied 80% of power consumed in H1 FY27, compared with 81% in FY26. It reported a captive-power cost of Rs 2.44 per kilowatt-hour in H1 FY27, versus an average power cost including grid power of Rs 3.05 per kilowatt-hour.

Conclusion

Shyam Metalics' Rs 13,145 crore pending-installation programme is concentrated in flat steel and stainless-steel processing. The Rs 4,380 crore still required for the hot-strip mill represents almost half of the Rs 8,863 crore pending total, while stainless steel accounts for Rs 2,155 crore. In contrast, the aluminium programme has only Rs 35 crore left to spend, whereas solar has Rs 406 crore outstanding.

The next disclosed milestones are execution and commissioning across the pipeline. Shyam Metalics expects Phase I wagon operations to commence soon and describes the aluminium flat-rolled-products facility as likely to be commissioned soon. Management's FY31E plan also calls for finished-steel sales volume of 3.07 million tonnes per annum, making progress on the remaining Rs 8,863 crore of spending central to the delivery timetable.