Shyam Metalics profit nearly doubles as depreciation falls

Shyam Metalics and Energy Limited reported consolidated profit after tax of Rs 510.99 crore for the quarter ended 30 September 2026, compared with Rs 260.45 crore a year earlier. Revenue from operations rose to Rs 5,960.19 crore, while a prospective depreciation-method change reduced the quarter’s charge by Rs 171.77 crore.

Why did Shyam Metalics’ September-quarter profit rise?

Shyam Metalics’ consolidated profit after tax rose by Rs 250.54 crore year on year to Rs 510.99 crore in the September 2026 quarter, from Rs 260.45 crore in the September 2025 quarter. Profit attributable to owners of the parent was Rs 493.35 crore, compared with Rs 261.76 crore a year earlier, while non-controlling interests accounted for Rs 17.64 crore of quarterly profit.

Revenue from operations increased to Rs 5,960.19 crore from Rs 4,467.40 crore, and total income rose to Rs 5,994.34 crore from Rs 4,536.53 crore. Earnings before interest, depreciation and amortisation expense, share in profit of associates and joint ventures, and tax increased to Rs 857.17 crore from Rs 608.56 crore. Finance costs rose to Rs 88.67 crore from Rs 50.30 crore, while profit before tax advanced to Rs 658.37 crore from Rs 347.09 crore.

How did the depreciation-method change affect Shyam Metalics’ result?

Shyam Metalics changed the depreciation method for certain property, plant and equipment from the written-down value method to the straight-line method, reducing consolidated depreciation for 1 July 2026 to 30 September 2026 by Rs 171.77 crore. Management said the straight-line method better reflects the pattern in which future economic benefits embodied in the assets are expected to be consumed.

The Group accounted for the change prospectively under applicable Indian Accounting Standards, rather than restating earlier reporting periods. Depreciation and amortisation expense was Rs 110.04 crore in the September quarter, compared with Rs 264.87 crore in the June 2026 quarter and Rs 211.18 crore a year earlier. The disclosed reduction affected profit before tax before any related tax effect, but the filing does not quantify a separate after-tax impact.

The accounting change was not the only movement in the result. Profit after finance cost but before depreciation and tax was Rs 768.50 crore in September 2026, compared with Rs 558.26 crore in September 2025 and Rs 734.08 crore in June 2026. Material-consumption costs increased to Rs 4,400.56 crore from Rs 3,290.16 crore, while other expenses rose to Rs 758.12 crore from Rs 537.69 crore alongside the revenue increase.

What do Shyam Metalics’ half-year results show?

Shyam Metalics generated consolidated revenue from operations of Rs 11,415.28 crore for the six months ended 30 September 2026, compared with Rs 8,890.39 crore in the corresponding prior-year period. Half-year profit after tax increased to Rs 861.72 crore from Rs 551.12 crore, and profit before tax rose to Rs 1,127.60 crore from Rs 736.03 crore.

Depreciation and amortisation over the six-month period was Rs 374.91 crore, below Rs 415.72 crore a year earlier. Over the same period, property, plant and equipment increased to Rs 8,880.49 crore at 30 September 2026 from Rs 7,968.68 crore at 31 March 2026, while capital work-in-progress rose to Rs 3,019.92 crore from Rs 2,791.94 crore.

Cash profit, defined in the filing as profit attributable to owners plus depreciation and amortisation expense, was Rs 1,213.33 crore for the six months, compared with Rs 969.63 crore a year earlier. Basic earnings per share, not annualised, were Rs 30.96 for the period, compared with Rs 19.81. The Group reported steel and allied products as its only reportable business segment, including pellets, sponge iron, MS billets, TMT and long products, speciality alloys, colour-coated sheets, aluminium foil, pig iron and stainless steel.

What do Shyam Metalics’ cash flow and balance sheet show?

Shyam Metalics generated net cash from operating activities of Rs 1,544.46 crore in the six months ended 30 September 2026, compared with Rs 619.81 crore in the year-earlier period. Operating profit before working-capital changes rose to Rs 1,688.14 crore from Rs 1,191.68 crore, but inventory, trade receivables and other current assets used Rs 786.69 crore, Rs 280.87 crore and Rs 804.90 crore, respectively.

Investment spending exceeded operating cash generation during the half year. Net purchases of property, plant and equipment, including capital work-in-progress, were Rs 1,844.38 crore, compared with Rs 1,071.41 crore in the prior-year six months, contributing to an investing cash outflow of Rs 1,637.64 crore. Net current-borrowing proceeds were Rs 407.12 crore, dividends paid were Rs 125.59 crore and finance costs paid were Rs 153.98 crore.

Cash and cash equivalents ended at Rs 22.09 crore, after a Rs 51.07 crore adjustment for the initial application of an amendment to Indian Accounting Standard 109 on 1 April 2026. Inventories were Rs 5,287.23 crore at 30 September 2026, up from Rs 4,501.45 crore at 31 March 2026, while trade receivables increased to Rs 1,193.54 crore from Rs 904.59 crore. Current borrowings rose to Rs 1,250.55 crore from Rs 884.28 crore.

What legal matter did Shyam Metalics disclose?

Shyam Metalics disclosed that the Directorate of Enforcement issued a provisional attachment order on 15 April 2026 affecting specified investments of Rs 152.48 crore held by subsidiary Shyam SEL and Power Limited. The order was issued under the Prevention of Money Laundering Act, 2002, in an investigation concerning alleged purchases of coal from illegal mining and coal pilferage in leasehold areas of Eastern Coalfields Limited by certain coal syndicates.

The filing says the Adjudicating Authority in New Delhi confirmed the attachment on 9 October 2026 and extended it for up to 365 days or until proceedings before the Special Court under the Act conclude. Management refutes the allegations, says no linkage has been established in the investigation, and has filed an appeal with the Appellate Tribunal in New Delhi. The statutory auditor drew attention to the matter but issued an unmodified conclusion.

Conclusion

Shyam Metalics’ September-quarter reported profit nearly doubled as revenue rose by Rs 1,492.79 crore and the switch to straight-line depreciation reduced the depreciation charge by Rs 171.77 crore. Half-year earnings and operating cash flow also increased, although higher inventories, receivables, other current assets and capital expenditure absorbed cash during the six months.

The next reporting periods will show the continuing effect of the prospective straight-line depreciation policy, with property, plant and equipment at Rs 8,880.49 crore and capital work-in-progress at Rs 3,019.92 crore on 30 September 2026. The Group’s appeal concerning the Rs 152.48 crore attached investments also remains unresolved after the attachment was confirmed and extended on 9 October 2026.