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Shyam Metalics Plans Major Expansion with ₹10,000 Crore Investment

Written by: Suraj Uday SinghUpdated on: 16 Oct 2025, 9:52 pm IST
Shyam Metalics plans ₹10,000 crore expansion under Vision 2031 to more than double revenue, boost capacity, and enhance operational efficiency.
Shyam Metalics Plans Major Expansion with 10,000 Crore Investment
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Shyam Metalics and Energy Ltd has announced a significant expansion plan under its Vision 2031 strategy. The company aims to more than double its revenue to ₹40,000 crore and increase its total production capacity from 15 million tonnes to 27 million tonnes over the next 7 years. This plan signals a structured approach to growth and operational scaling across key business segments.

Investment Focus and Areas

The expansion will involve an estimated ₹10,000 crore investment, primarily funded through internal accruals. The funds are set to be deployed across specialty steel, stainless steel, flat products, and aluminium. 

The company plans to focus on downstream integration, adopting advanced technology, and improving energy efficiency in production processes. This approach is expected to strengthen operational performance and support long-term sustainability.

Sectoral and Operational Impact

The strategy is designed to enhance the company’s position in high-value sectors such as defence, infrastructure, engineering, and railways. Backward integration in energy and mining is a key part of the plan, which will improve operational efficiency and reduce reliance on external resources. 

The expansion is projected to boost EBITDA margins by 200–300 basis points once the plan is fully implemented, supported by a richer product mix and increased operating leverage.

Employment and Export Growth

Alongside capacity and revenue expansion, the plan is expected to generate around 10,000 new jobs. Export revenues are also projected to double, reaching $300 million, which highlights the company’s focus on broadening its global footprint and enhancing competitiveness in international markets.

Shyam Metalics & Energy Share Price Update

Following the announcement, Shyam Metalics & Energy shares saw modest gains. As of 3:46 p.m. on October 16, the stock was trading at ₹916, up 0.05% on the day. The company’s market capitalisation stood at ₹25,571 crore, reflecting its established position in the metals and energy sector.

The stock has traded in a 52-week range of ₹628 to ₹1,001, indicating consistent investor interest. The share currently has a P/E ratio of 27.7 and a book value of ₹378 per share. Dividend yield is 0.49%, while the company reports a Return on Capital Employed (ROCE) of 12.0% and a Return on Equity (ROE) of 8.99%. 

Read More:PNC Infratech Receives ₹297 Crore Contract from Airports Authority of India for Varanasi Airport Expansion

Conclusion

Shyam Metalics’ Vision 2031 outlines a structured expansion with significant investment across key product lines and operational improvements. The plan targets increased revenue, enhanced capacity, and broader market presence while supporting job creation and export growth. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Oct 16, 2025, 4:19 PM IST

Suraj Uday Singh

Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.

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