Shyam Metalics Reports ₹493 Crore Q2 Profit, Approves ₹360 Crore Investment in Chhattisgarh Coal Block

Shyam Metalics and Energy Ltd. reported a strong sequential improvement in its financial performance for the September quarter, with consolidated net profit rising 42.9% to ₹493 crore from ₹345 crore in the June quarter. The company also announced a major investment plan for a coal block in Chhattisgarh, signalling a move to strengthen its raw material security for steel manufacturing and captive power generation.

Revenue from operations increased 9.3% sequentially to ₹5,960 crore in the September quarter, compared with ₹5,455 crore in the previous quarter. Consolidated EBITDA rose 7.6% to ₹823 crore from ₹765 crore. However, the EBITDA margin eased to 13.8%, against 14% in the June quarter, indicating some moderation in operating profitability despite higher revenue and earnings.

The company’s board has approved an initial capital expenditure budget of approximately ₹360 crore for the development and operationalisation of the Phutamura Coal Block in Raigarh district, Chhattisgarh. Shyam Metalics will fund 51% of the proposed investment, amounting to around ₹183.6 crore, while its joint venture partner will contribute the remaining 49%.

The coal block covers approximately 7.324 square kilometres and is estimated to contain reserves of around 170 million tonnes. Its development is expected to support the company’s long-term coal requirements, particularly for captive power generation and steel manufacturing. Securing a more dependable coal supply could help the company manage input costs and reduce exposure to fluctuations in external fuel availability.

Alongside the coal block investment, Shyam Metalics has approved the acquisition of a 51% controlling stake in Alom Solar Pvt. Ltd. through a cash transaction. The proposed acquisition remains subject to definitive agreements and the necessary regulatory and other approvals.

Alom Solar holds the mining rights for the Phutamura Coal Block. Once the transaction is completed, the company is expected to become a subsidiary of Shyam Metalics. The acquisition is scheduled to be completed on or before November 30, 2026.

The latest decisions point to a broader effort by Shyam Metalics to strengthen its integration across the steel production value chain. By investing in coal block development and securing control of the entity holding its mining rights, the company is looking to build greater control over a critical input for its operations.

The progress of the Phutamura project and completion of the Alom Solar acquisition will be important developments to watch as the company advances its expansion and resource security plans.