Shyam Metalics unveils Rs 10,000 cr plan to double revenue, check stock reaction

Shyam Metalics and Energy Ltd (SMEL) has unveiled a significant capital expenditure plan totalling ₹10,000 crore, with the objective of more than doubling its revenue by 2031. The strategy, announced as part of the company's Vision 2031 roadmap, targets a 2.5-fold rise in revenue to ₹40,000 crore and an expansion in total production capacity from 15 million tonnes to 27 million tonnes over the next seven years. The company intends to fund the majority of the investment through internal accruals. The expansion will focus on downstream integration, technology advancements, and improvements in energy efficiency, with a particular emphasis on specialty steel, stainless steel, flat products, and aluminium. According to the firm, "the strategy will strengthen its position in high-value sectors such as defence, infrastructure, engineering, and railways, while improving operational efficiency through backward integration in energy and mining."

SMEL’s capital investment and capacity growth come as the firm seeks a stronger foothold in high-value markets through operational efficiency and product diversification. The broader implications for the industry include a potential increase in job creation, with plans to generate around 10,000 new roles and target a doubling in export revenues to $300 million. Within the sector, Shyam Metalics competes with other large integrated metal producers, though competitor names were not mentioned in the company’s statement. The plan underlines SMEL’s commitment to technological upgrades, energy optimisation, and downstream integration, as it positions itself for long-term growth across key industrial segments.

Following the announcement, shares of Shyam Metalics rose by 1.38% to ₹928.20 on the NSE. Later, the stock ended at Rs 916. The company also outlined expectations for enhanced financial performance, including an anticipated 200–300 basis points increase in EBITDA margins upon completing the expansion, driven by operating leverage and a more valuable product mix.

The company’s current financial ratios, trading volume, and performance compared to sector indices such as the Sensex were not disclosed in the filing. Data on 1-month and 1-year returns, as well as additional ratio comparisons, will be awaited in subsequent disclosures.