Shyam Metalics ₹2,700 Cr Expansion, ₹2.70 Dividend in 2026

Board approvals: capex and shareholder payout

Shyam Metalics and Energy Limited said its board approved a ₹2,700 crore expansion plan for new mills, alongside a final dividend of ₹2.70 per share. The update comes amid a broader set of project announcements and commissioning milestones spanning steel flat products, aluminium, and downstream value-added lines. Together, these moves underline the company’s push to widen its product mix and add capacity in segments such as colour-coated sheets and aluminium rolled products.

Vision 2031: topline and capacity targets

Under its Vision 2031 strategy, SMEL set a target of 2.5x revenue growth to ₹400 billion by 2031. It also outlined an investment plan of ₹100 billion, largely from internal accruals, to expand aggregate capacity from 15 million tonnes to 27 million tonnes. The company said it expects EBITDA margins to improve by 200-300 basis points after the expansion, supported by operational leverage and better product mix realisation. It also stated an aim to double export revenue from US$150 million to US$100 million and create over 10,000 new direct and indirect jobs.

Cold rolling mill at Jamuria: Phase I details

SMEL said it has commenced Phase I of its greenfield cold rolling mill at the Jamuria plant in West Bengal. The facility has an annual capacity of 400,000 tonnes and a total capital cost of ₹603 crore. The company disclosed that ₹346 crore has been invested and ₹257 crore remains pending. SMEL said the new unit is expected to contribute 8% to 10% of the company’s revenue and EBITDA and addresses the shortage of colour-coated sheet manufacturing units in eastern India.

SSPL Phase II: colour coated sheets output begins

The company’s step-down subsidiary SSPL commenced commercial production of Phase II of its colour coated sheets facility from April 16, 2026. The Phase II commissioning adds 0.15 MTPA capacity at the Jamuria plant in West Bengal. With this addition, total installed capacity for the facility stands at 0.40 MTPA. SMEL said the expansion positions the business to serve sectors including solar energy, automotive, and consumer durables, while supporting import substitution objectives under the PLI scheme.

Aluminium foray at Sambalpur: product slate and volumes

SMEL said its aluminium manufacturing project in Sambalpur, Odisha is ready for commercial production through its subsidiary Smel Steel Structural Pvt. Ltd. The facility is planned to produce 60,000 TPA of Aluminium Flat Rolled Products and 18,000 TPA of Aluminium Foils. The company also stated it expects operating margins to improve by 40-50% and revenue to grow 2x to 2.5x over the medium term, driven by a better product mix and enhanced efficiencies.

Pakuria additions: annealing furnaces and foil processing equipment

Shyam Metalics & Energy announced expansion at its Pakuria facility through commissioning of two annealing furnaces with 25 MT and 30 MT per annum capacities. It also commissioned a 2300 mm Vertical Foil Separator designed to process foil materials in the 6 to 15 microns thickness range. The company said these additions are intended to improve production efficiency, strengthen process control, and support value-added product offerings.

Blast furnace and sinter plant: brownfield capacity and efficiency

Separately, SMEL said it invested ₹600 crore to commission a 0.77 MTPA blast furnace and a 1.11 MTPA sinter plant at its Jamuria facility. The blast furnace includes advanced coal dust injection, a 550 cubic meter volume, and top-fired stoves. The company stated that margins improve by approximately ₹700 per tonne from the enhancement and that an 18 MW Top Gas Pressure Recovery Turbine (TRT) aids energy recovery, cutting power usage by 10%. It also said the facility is designed for zero-process water discharge.

Inorganic expansion: stainless steel entry via NCLT process

SMEL said it has forayed into stainless steel by acquiring Mittal Corp in an NCLT-led resolution process, with an acquisition cost of about ₹450 crore. It also stated it plans to invest about ₹7,500 crore over the next five years to scale up its metals business. The acquisition is expected to establish manufacturing footprints in Madhya Pradesh and add capacities of 150,000 tonnes per annum for stainless steel and wire rod and bar mill products.

Diversification into wagons: Kharagpur facility plan

The company also announced entry into wagon manufacturing through a greenfield facility at Kharagpur, West Bengal, under its step-down subsidiary Ramsarup Industries. The project is slated to commence operations by March 2026. Phase I is planned at 2,400 wagons per annum, while Phase II is expected to raise capacity to 4,800 wagons annually.

Key figures at a glance

Project and commissioning milestones

Market impact: what the disclosures change for investors

The announcements provide a clearer view of SMEL’s capital allocation across brownfield and greenfield projects, along with a timeline for multiple capacity additions. The final dividend of ₹2.70 per share sets the immediate shareholder payout alongside longer-cycle investments such as the ₹2,700 crore expansion plan for new mills. The company’s stated goals include higher downstream exposure, export scaling to US$100 million, and a 200-300 basis point EBITDA margin improvement post-expansion.

Analysis: why the mix shift matters

SMEL’s pipeline shows a tilt toward value-added flat products and downstream lines, including colour-coated sheets and aluminium rolled products. The company has linked several projects to product mix improvement and efficiency, such as the TRT at Jamuria and the foil processing additions at Pakuria. On the strategic side, the combination of a 15-to-27 million tonne capacity target and the ₹400 billion revenue goal frames a scale-up plan that relies on execution across multiple sites and subsidiaries.

Conclusion

Shyam Metalics has paired a board-approved ₹2,700 crore expansion plan and a ₹2.70 per share final dividend with a series of commissioning updates and new capacity plans across steel, aluminium, and wagons. Key near-term milestones include SSPL’s Phase II commercial production from April 16, 2026 and the wagon facility slated to start by March 2026. The next set of updates is expected to revolve around ramp-up timelines, additional brownfield execution across states, and progress on the Vision 2031 investment programme.