Shyam Metalics Reports Strong Volumetric Surge in Pig Iron and Pellets for Q1 FY27 Amid Capactiy Expansions

Integrated metal conglomerate Shyam Metalics and Energy Limited (SMEL) has released its consolidated sales report for June 2026 and the first quarter of the 2027 financial year, highlighting stellar, volume-driven growth in key industrial segments like pig iron and pellets following successful production stabilizations.

Pig Iron and Pellets Lead Annualized Growth

The metal producer achieved massive scaling across upstream and raw material verticals on a year-over-year (YoY) basis, driven by recent capital expenditure projects. Pig iron sales volumes for June 2026 skyrocketed by 156.52% YoY to reach 9,550 metric tonnes (MT), up from 3,723 MT in June 2025. This volume expansion was matched by a 19.22% increase in average pricing realization, which landed at ₹38,780 per MT. On a quarterly basis, the pig iron segment recorded a strong 42.11% expansion in volumes and a 5.09% increase in pricing realizations compared to Q4 FY26.

This performance tracks the successful optimization of SMEL's raw production facilities. The company stabilized a 0.77 million tonnes per annum (MTPA) blast furnace complex at Jamuria alongside an additional 0.45 MTPA blast furnace asset at its Ramsarup facility, which was added to the manufacturing pipeline.

The pellet manufacturing division experienced a similar annualized surge, with monthly volumes climbing 92.26% YoY to 1,55,563 MT in June 2026, supported by a 2.21% uptick in pricing realization to ₹8,539 per MT. The broader quarterly trajectory for pellets registered a 40.50% volume expansion over Q4 FY26, though realizations softened slightly by 5.22% sequentially.

High-Value Value-Added Portfolios Show Resilient Pricing

Within downstream and premium segments, Shyam Metalics focused on scaling higher-margin offerings, though some product lines met sequential first-quarter demand rebalancing:

Stainless Steel: Monthly volumes for June expanded 40.21% YoY to 9,051 MT, with average realizations leaping 23.15% to ₹1,76,588 per MT. On a full-quarter basis, realizations improved by 18.04% over Q4 FY26, counterbalancing a sequential volume compression of 14.80%.

Aluminium Foil: The business vertical clocked a 20.68% YoY volume jump for June to land at 2,151 MT, while pricing realizations surged 39.32% YoY to ₹5,03,400 per MT. This operational footprint remained stable through the full quarter, posting a modest 0.86% volume increase and an 18.65% pricing boost over the preceding quarter.

Cold Rolled (CR) Coils and Sheets: June sales volumes scaled up 53.46% YoY to 18,203 MT, with realizations expanding 20.53% to ₹89,172 per MT. The growth follows the commercial integration of Phase II at its Jamuria color-coated steel facility, which added 0.15 MTPA of processing capacity to back its premium SEL Tiger roofing line.

Carbon Steel (Steel Billets and Long Products): The group's core structural portfolio posted a 16.53% YoY increase in monthly volumes to 1,48,711 MT, maintaining flat pricing realizations at ₹43,338 per MT.

Structural Adjustments in Intermediates and Downstream Pipes

A few segments recorded temporary production adjustments during the transitional seasonal cycle. Monthly sponge iron volumes dipped 28.28% YoY to 61,765 MT, though pricing realizations rose 4.40% to ₹23,580 per MT. Sequentially, quarterly sponge iron volumes compressed 19.59%.

Similarly, the Hot Rolled (HR) Tube and Pipe business-which repurposes leftover side-slitted coils from the color-coating facility into rectangular and square hollow sections-saw June volumes decline 49.94% YoY to 142 MT. However, pricing realizations for the structural pipes climbed 14.14% YoY to ₹57,106 per MT and advanced 11.47% on a sequential quarterly basis.

Shyam Metalics, which commands an elevated long-term bank facility credit rating of CRISIL AA+ (Stable), remains one of the lowest-leveraged primary steel and ferroalloy producers in India.

Shares of Shyam Metalics and Energy Limited was last trading in BSE at Rs. 956.70 as compared to the previous close of Rs. 949.10. The total number of shares traded during the day was 13841 in over 600 trades.

The stock hit an intraday high of Rs. 965.00 and intraday low of 949.05. The net turnover during the day was Rs. 13261836.00.

Source : Equity Bulls

Keywords

ShyamMetalicsandEnergy Q1FY27 OperationalUpdate