Q4 margin rebounds, but higher tax rate limits Shyam Metalics' profit growth
Revenue growth outpaced expenses, while the company outlined Rs 603 cr of Jamuria cold-rolling capex and a further Rs 800 cr aluminium expansion.
Filed 23 May 2026, 11:48 IST · after market close · Shyam Metalics & Energy Ltd (SHYAMMETL)
Key takeaways
- Consolidated operating margin recovered 2.85 percentage points QoQ to 13.87% as revenue grew 18.52%, faster than expenses at 14.72%.
- Net profit rose 41.51% YoY to Rs 311.54 cr, below the 53.55% growth in pre-tax profit because the tax rate increased 5.8 percentage points to 31.72%.
- The stock's recent post-results reaction was typically a 3.02% absolute move, but the latest tracked response fell 6.62% by day one.
Price around the results
Q4 revenue momentum returned after the Q3 slowdown
Consolidated revenue grew 26.60% YoY and 18.52% QoQ to Rs 5,240.36 cr, reversing the near-flat sequential sales trend seen through Q2 and Q3. Operating profit grew faster, at 41.10% YoY and 49.22% QoQ, because expenses increased more slowly than revenue. Management said Phase I's blast furnace, sinter and oxygen unit had been commissioned during the quarter.
Margin recovery was operational, while tax diluted earnings conversion
Operating margin expanded 1.42 percentage points YoY and 2.85 percentage points QoQ to 13.87%, with revenue growth exceeding expense growth in both comparisons. Interest rose 17.60% YoY but was almost unchanged QoQ, while depreciation increased 8.70% YoY and 14.04% QoQ. The tax rate rose to 31.72% from 25.92% a year earlier, so net profit growth of 41.51% lagged pre-tax profit growth of 53.55%; other income contributed 6.41% of pre-tax profit.
Margin moved above Q3, but remained below the Industrials median
The 13.87% operating margin ended two consecutive quarters of decline from 13.12% in Q1FY26 to 12.10% in Q2FY26 and 11.02% in Q3FY26. It was 1.42 percentage points above Q4FY25, but 1.79 percentage points below the 15.66% median for the 71 Industrials peers that had reported. The company ranked 29th from the bottom on this sector comparison.
Expansion pipeline adds capacity commitments to the quarter
Management said the Jamuria, West Bengal, greenfield cold-rolling mill is being developed with Rs 603 cr of capex and 250,000-tonne Phase I capacity. The company also said its aluminium division expansion involves Rs 800 cr across a mill, caster, flat-rolled products and battery-foil plant. Management said this aluminium expansion is likely to be commissioned very soon.
Recent stock reaction was weaker than its usual first response
In the latest tracked post-results reaction, the stock fell 3.51% on day zero and 6.62% by day one, with day-zero volume at 4.66 times the reference level. Across eight prior result reactions, shares rose six times and fell twice, with a median absolute move of 3.02%, making the latest day-one decline larger than its usual move. The stock was up 8.98% after 15 sessions and 6.64% after 30 sessions in that tracked window.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,240 cr | ₹4,421 cr | +18.52% | +26.60% |
| Other income | ₹29 cr | ₹52 cr | -43.43% | -46.11% |
| Expenses | ₹4,513 cr | ₹3,934 cr | +14.72% | +24.54% |
| Operating profit | ₹727 cr | ₹487 cr | +49.22% | +41.10% |
| Operating margin (%) | 13.87% | 11.02% | — | — |
| Interest | ₹51 cr | ₹51 cr | +0.92% | +17.60% |
| Depreciation | ₹249 cr | ₹218 cr | +14.04% | +8.70% |
| Profit before tax | ₹456 cr | ₹270 cr | +68.97% | +53.55% |
| Tax | ₹145 cr | ₹73 cr | +99.59% | +87.95% |
| Net profit | ₹312 cr | ₹198 cr | +57.73% | +41.51% |
| EPS (₹) | ₹11.20 | ₹7.10 | +57.75% | +41.41% |
Operating margin of 13.87% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.51% | -2.02% |
| Next session | -6.62% | — |
| 5 sessions | -1.86% | +0.31% |
| 15 sessions | +8.98% | — |
| 30 sessions | +6.64% | — |
Volume on the results session was 4.66× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Phase I's blast furnace was successfully commissioned along with the sinter and oxygen unit.
Guidance & outlook
- The aluminium expansion is likely to be commissioned very soon.
Expansion
- The company is developing a greenfield cold rolling mill at Jamuria, West Bengal, with total capex of Rs. 603 crore and 250,000-tonne Phase I capacity.
- The company plans further aluminium division expansion of Rs. 800 crore, comprising a mill, caster, flat rolled products and battery foil plant.
What to watch
- Whether operating margin holds above the Q4FY26 level of 13.87% after its rebound from 11.02% in Q3FY26.
- Whether the tax rate moves back from 31.72%, which was 5.8 percentage points above Q4FY25.
- Progress on the Rs 603 cr Jamuria project and the 250,000-tonne Phase I capacity cited by management.