Shyam Metalics lifts quarterly profit 88% and plans stake in coal block

what happened

Shyam Metalics reported that consolidated net profit attributable to owners of the parent rose 88.4% to Rs 493.35 crore in the quarter ended 30 September 2026, against Rs 261.76 crore a year earlier. Revenue from operations grew 33.4% to Rs 5,960.19 crore. The figures come from unaudited results approved by the board on 31 October, as reported by Moody's.

At the same meeting, the board approved acquiring a 51% controlling stake in Alom Solar, which holds mining rights to the Phutamura coal block in Raigarh district, Chhattisgarh. The block covers about 7.324 sq km and has estimated reserves of around 170 million tonnes. The deal depends on definitive agreements and statutory approvals, with completion targeted on or before 30 November 2026.

Initial capital expenditure for the block is estimated at about Rs 360 crore, of which Shyam Metalics' 51% share is roughly Rs 183.60 crore. The remaining 49% will be funded by its joint venture partner.

why it matters

The deal is not among the largest in the market, but it shows steel producers looking to secure their own coal for captive power and steelmaking. Such backward integration can reduce reliance on outside supply and exposure to raw material price swings.

market impact

Shyam Metalics shares: strong profit and access to captive coal support the company

• ▲Shyam Metalics shares pressure up — profit rose nearly 88% and captive coal reduces reliance on purchased supply

tags

instruments