Shyam Metalics flat-steel volumes more than doubled in second quarter

Shyam Metalics and Energy Limited reported carbon-steel flat sales of 81,493 tonnes in the second quarter of financial year 2027 (Q2 FY27), more than double the 38,870 tonnes sold a year earlier. The 109.7% increase was the fastest among its six reported product groups, while flat-steel realisation rose 16.4% to 85,111 rupees per tonne.

Why did Shyam Metalics' flat-steel volumes rise in Q2 FY27?

Shyam Metalics attributed the increase to its continued downstream presence and integration, although the release does not quantify the contribution from individual facilities or products. Carbon Steel (Flat), which includes cold-rolled coil and sheets, crash barriers, and hot-rolled tube and pipe, reached 81,493 tonnes in the quarter ended September 30, 2026, compared with 38,870 tonnes in Q2 FY26.

The sequential change was also substantial. Carbon Steel (Flat) sales rose 64.5% from 49,539 tonnes in the first quarter of financial year 2027 (Q1 FY27) to 81,493 tonnes in Q2 FY27. In commentary accompanying the results, management said it was deepening downstream presence and integration, leading to growth in flat-product volumes.

For the first half of financial year 2027 (H1 FY27), Carbon Steel (Flat) volume was 1,31,032 tonnes, up 83.3% from 71,479 tonnes in H1 FY26. That represented an increase of 59,553 tonnes across the half year, with the Q2 year-on-year growth rate of 109.7% exceeding the first-half rate.

How did Shyam Metalics' product volumes compare in Q2 FY27?

Shyam Metalics' Carbon Steel (Flat) recorded the fastest year-on-year volume growth among its six reported product groups in Q2 FY27. Its 109.7% increase exceeded growth in Metallics at 39.2%, Stainless Steel at 20.7%, Speciality Alloys at 4.7%, Aluminium at 3.0%, and Carbon Steel (Long) at 1.5%.

The largest reported tonnage remained Metallics, comprising iron pellets, sponge iron and pig iron. Metallics sales of 9,43,020 tonnes were more than 11 times Carbon Steel (Flat) volume, but its 39.2% growth rate was 70.5 percentage points below the flat-steel rate. Shyam Metalics reported total sales volume growth of 26% to 15.49 lakh tonnes in Q2 FY27.

Carbon Steel (Long), covering steel billets and long steel products, was the second-largest reported group at 4,32,553 tonnes. Its year-on-year volume increase was 6,490 tonnes, compared with a 42,623-tonne increase for Carbon Steel (Flat), showing that reported growth differed substantially across steel categories.

What happened to Shyam Metalics' flat-steel realisations?

Shyam Metalics' Carbon Steel (Flat) realisation rose 16.4% year on year to 85,111 rupees per tonne in Q2 FY27 from 73,091 rupees per tonne in Q2 FY26. The increase exceeded the 5.3% rise in Carbon Steel (Long) realisation to 43,723 rupees per tonne and the 5.1% rise in Metallics realisation to 20,325 rupees per tonne.

The Q2 FY27 flat-steel realisation was 2.0% below 86,815 rupees per tonne in Q1 FY27, even as sales volume increased 64.5% sequentially. For H1 FY27, flat-steel realisation was 85,755 rupees per tonne, up 18.1% from 72,582 rupees per tonne in H1 FY26. The release does not separate the effects of selling prices, product mix or customer markets on these figures.

Stainless Steel recorded the largest Q2 FY27 year-on-year rise in realisation among the reported groups, increasing 35.2% to 1,77,156 rupees per tonne. Aluminium realisation rose 27.7% and Speciality Alloys rose 18.4%, meaning Carbon Steel (Flat) led volume growth but not realisation growth.

How did flat steel feature in Shyam Metalics' revenue mix and results?

Shyam Metalics reported cold-rolled coil and sheet as 11.0% of Q2 FY27 revenue, while the separately presented Carbon Steel category accounted for 31.8%. The company did not disclose a standalone revenue amount for the full Carbon Steel (Flat) group, so the 11.0% cold-rolled coil and sheet share does not represent all flat products, which also include crash barriers and hot-rolled tube and pipe.

Steel Products accounted for 76% of Q2 FY27 revenue and 77% of H1 FY27 revenue. In the H1 FY27 breakdown, cold-rolled coil and sheet represented 9.5% of revenue and Carbon Steel represented 32.8%. The presentation does not provide a Q2 FY26 revenue split that would allow a year-on-year product-revenue comparison.

At the consolidated level, Q2 FY27 revenue was Rs 5,960 crore, up 33.4% from Rs 4,467 crore in Q2 FY26. Operating earnings before interest, tax, depreciation and amortisation (Operating EBITDA) increased 52.6% to Rs 823 crore, while profit after tax rose 96.2% to Rs 511 crore. Shyam Metalics presents these results alongside its product data but does not attribute the increases to Carbon Steel (Flat) alone.

Management also reported the addition of 18,000 tonnes per annum of aluminium foil capacity at Sambalpur in Q2 FY27, taking total aluminium foil capacity to about 42,000 tonnes per annum. Aluminium sales volume increased 3.0% year on year to 5,434 tonnes, compared with the 109.7% increase in Carbon Steel (Flat) volume.

Conclusion

Shyam Metalics' Q2 FY27 product figures identify Carbon Steel (Flat) as the volume-growth outlier: sales increased 109.7% year on year to 81,493 tonnes and realisation rose 16.4% to 85,111 rupees per tonne. Metallics remained the largest reported product group by tonnage at 9,43,020 tonnes, but its 39.2% growth rate was well below that of flat steel.

The disclosed expansion plan points to planned hot-rolled and Special Bar Quality mills as part of a move into higher-value products. Management also said a proposed 9 million tonnes per annum integrated steel complex at Chandrapur will be pursued only subject to feasibility, land availability and statutory approvals, leaving those conditions as the next disclosed milestones.