Shyam Metalics Q2 Net Profit Soars to ₹493 Crore

Shyam Metalics and Energy Ltd has posted a strong consolidated net profit of ₹493.35 crore for the quarter ended September 30, 2026, compared to ₹261.76 crore in the same period last year. Revenue from operations also rose significantly to ₹5,960.19 crore, up from ₹4,467.40 crore in the year-ago quarter.

Reader Takeaway: Strong top-line growth driven by expansion is tempered by ongoing regulatory challenges involving the Enforcement Directorate.

What just happened

The board has approved an aggressive expansion strategy, including the acquisition of a 51% stake in Alom Solar Private Limited. This move secures rights to the Phutamura Coal Block in Chhattisgarh. The company plans an initial capital expenditure of ₹360 crore for this project, of which Shyam Metalics will fund ₹183.60 crore. Additionally, the company has appointed Mr. Debashis Prasad Pattanaik as a Nominee Director on behalf of LIC.

Why this matters

The acquisition represents a strategic backward integration, securing the fuel supply chain necessary for long-term captive power generation and steel manufacturing. Investors should note that a change in depreciation accounting—shifting from WDV to the Straight-Line Method—boosted the reported quarterly profit by reducing depreciation charges by ₹171.77 crore.

Risks to watch

The company remains in a legal dispute with the Enforcement Directorate regarding a provisional attachment order of ₹152.48 crore. The ED is investigating allegations related to illegal coal mining and pilferage. Shyam Metalics is currently contesting this order at the Appellate Tribunal and maintains that its core operations remain unaffected by the probe.

Context metrics

For the first half of FY26, the company recorded a total revenue of ₹11,415.28 crore and a net profit of ₹838.42 crore, compared to ₹8,890.39 crore and ₹553.91 crore respectively in H1 FY25. Basic EPS for the half-year stands at ₹30.96.