The Jaipur-based manufacturer of non-ferrous metal products recorded significant growth in revenue and margins during the first nine months of fiscal year 2026, supported by enhanced vertical integration and strategic moves into the Zambian and Ethiopian markets. These developments indicate a transition toward greater raw material security and a shift toward high-value product segments such as renewable energy infrastructure.
Earnings Highlights
Shera Energy Limited (SHERA) reported a consolidated profit before tax (PBT) of ₹34.48 crore for the nine-month period ended December 31, 2025, representing a 66.92% increase over the same period in the previous fiscal year. The company’s total revenue grew 30.02% year-over-year to ₹1181.86 crore, while EBITDA rose 54.58% to ₹66.33 crore. As of February 13, 2026, the company maintained a market capitalization of ₹295.59 crore with a share price of ₹120.95.
Key Development
The primary driver of the company’s current strategic trajectory is the move toward full vertical integration through an upcoming copper cathode plant in Zambia. This facility is designed to provide raw material security and reduce reliance on external suppliers, which management expects will structurally improve the company’s margin profile. Additionally, the company has secured approval for a new overseas subsidiary in Ethiopia, further extending its African footprint following the establishment of Shera Zambia Limited.
Financial Performance
Financial results for 9M FY26 show a net profit of ₹24.62 crore, up from ₹15.64 crore in 9M FY25. The diluted earnings per share (EPS) stood at ₹8.01, a 49.44% increase year-over-year. For the full fiscal year 2025, the company reported a total income of ₹1,279.05 crore and a net profit of ₹22.40 crore. Key financial ratios as of FY25 included a return on equity (ROE) of 14.76% and an interest coverage ratio of 2.24. The company’s debt-to-equity ratio was 1.21 at the end of FY25, reflecting a slight increase from 1.12 in the prior year.
Business Outlook & Strategy
Management’s strategy focuses on diversifying into high-growth segments within India, specifically solar ribbons, conductors, and specialized wires for power transmission and clean energy applications. These value-added products are intended to enhance the product mix and profitability. The company continues to utilize a model of backward and forward integration through its subsidiaries, Rajputana Industries Limited and Shera Metal Private Limited, to manage copper price volatility and add value across the production chain.
Sector and Macro Context
The global winding wire market is projected to reach USD 23.02 billion by 2030, driven by demand in automotive, electronics, and renewable energy sectors. In India, the non-ferrous metals market is expected to grow at a CAGR of 5.23% between 2025 and 2033, supported by large-scale infrastructure projects. Rising demand for electric vehicles (EVs) is a significant macro driver, as copper and aluminum are essential for EV wiring harnesses and motors.
Regulatory Milestones and Segment Updates
Shera Energy holds vendor approval from the Power Grid Corporation of India for various conductors and is ISO certified across quality, environmental, and occupational health standards. In terms of operations, capacity utilization for 9M FY26 reached 89% for brass products, 80% for aluminum products, and 76% for copper products. The consolidated installed capacity stood at 46,750 MT as of September 30, 2025.
Market Situation and Business Model
The company’s business model involves recycling non-ferrous metal scrap into wires, tubes, and strips, primarily for use in transformers, motors, and electrical panels. This recycling-based approach is noted for being more energy-efficient and reducing carbon emissions compared to primary production. While the company has a strong domestic presence, exports contributed 6.91% of revenue in FY25, with products reaching over 15 countries.
Management Commentary and Future Outlook
Management has indicated that the transformation into a scalable, integrated international platform is ongoing, with a focus on operational efficiency and capacity expansion. Future growth is expected to be anchored by the African expansion strategy and the adoption of advanced manufacturing techniques for value-added products.
Where Does Shera Energy Limited Stand Today?
Today, Shera Energy operates as a diversified manufacturer with four manufacturing plants (including subsidiaries) spread across 800,000 square feet. Since its listing on the NSE Emerge platform in February 2023, the company has maintained a 35.39% CAGR in total income from FY23 to FY25. It remains positioned as a key player in the Indian non-ferrous metals sector, now aggressively pursuing vertical integration and international market share.
Reasons for Investors to Monitor the Stock:
• Strengths: Extensive management experience, established vendor approvals from major state enterprises, and a robust backward integration model. • Considerations (Reasons for a “Pass” by cautious investors): High inventory days (75 days in FY25) and a relatively high working capital cycle of 67 days may pose liquidity challenges during market downturns. Additionally, the short-term borrowings saw a significant increase to ₹141.46 crore in FY25.