Shyam Metalics and Energy Limited (NSE: SHYAMMETL) Q1 2026 Earnings Call dated Jul. 23, 2025
Corporate Participants:
Unidentified Speaker
Pankaj Harlalka — Head of Investor Relations
Brij Bhushan Agarwal — Vice Chairman and Managing Director
Deepak Agarwal — Whole-Time Director and Chief Financial Officer
Analysts:
Unidentified Participant
Amit Dixit — Analyst
Shalin Kumar — Analyst
Preeti Agarwal — Analyst
Kartikeya Pandey — Analyst
Devesh Lakhotia — Analyst
Kunal Kothari — Analyst
Varun Mishra — Analyst
Rakesh Roy — Analyst
Patanjali Srinivasan — Analyst
Gaurav Sanjay Gandhi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q1FY26 earnings conference call of Shyam Metallics and Energy Limited hosted by MUFG in time. As a reminder, all participant lines will be a lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your Touchstone phone. I now hand the conference over to Mr. Pankaj Herlalka, Head IR from Shyam Metallics. Thank you. And over to you, sir.
Pankaj Harlalka — Head of Investor Relations
Thank you. Good afternoon to everyone and thanks for connecting with us on our first con call of this financial year. On behalf of Shyam Metallics, I am delighted to welcome you all to this call. Particularly our shareholders and our industry analysts. Thank you for taking the time out on this call to discuss our latest results and performance. Our results and detailed investor presentation has been uploaded on the exchanges as well as our website. I hope everyone had a chance to go through it to discuss our results. We have with us our Chairman and Managing Director Mr.
Bridge Bhushan Agarwal and our Director of Finance Mr. Deepak Agarwal. They will take you through our results and then we’ll proceed to Q and A session. Before we proceed, a small disclaimer. This conference call may contain some forward looking statements about the company which are based on the beliefs, opinions and expectations of the company. As of the date of this call, the actual results may differ materially. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is also given on the page two of the company’s investor presentation.
Now I would like to hand over the call to Bhushanji. Thank you. And over to you sir.
Brij Bhushan Agarwal — Vice Chairman and Managing Director
Very, very good afternoon everyone. Thank you for joining the call. FY25 has been a very hurtle year for our company. A period well defined by strong operational achievement, rebalancing growth and effective strategic execution. Despite a dynamic industry landscape, we remain focused on integration, diversification and expanding our value added portfolio. This approach enable us to deliver solid performance across all the business verticals. I am pleased to share that we have delivered a robust and resilient performance this quarter. Your company revenue growth has been close to 22% year on year while the operating EBITDA rose to an impressive 19%.
Volume growth was particularly notable with 32% year on year increase. This result reflects our continued emphasis on on operational efficiency, rigorous cost management and balanced product mix supported by growth contribution from value added products. Our blast furnace and color coated facilities commissioned in F525 have performed strongly this quarter with operational stabilization achieved ahead of schedule. In Q1FY26 the big RM plant recorded a utilization rate of 104% while color coded unit reached close to 70% indicating a healthy ramp up and positive momentum. This reflects not just operational excellence but also our ability to execute projects ahead of expectations showcasing strong ramp up capabilities and performance driven culture.
We believe our core strength lies in driving efficiencies though both vertical and horizontal integration. This strategy enhances profitability, broaden our customer base and helps mitigate margin volatility. Our continued focus on backward integration is expected to further improve operational performance and increase the revenue share from the finished good. Our production capabilities remain strong underscoring our commitment to operational excellence and ongoing investment in the most modern advanced technology. Through upgradation modernization and process enhancement, we have expanded both our capacity and product quality and gone more and more value added to enhance the profitability and the bottom line.
The aluminium segment continues to demonstrate a very solid performance and we are confident in expanding our presence in this space. By developing the niche product for special applications, we aim to drive growth in both volume and profitability in the coming quarter. At Sham Metallic we remain firmly committed to to executing our growth and roadmap. As Q1FY26 we have anchored. We have incurred up to 7,003 crores in the capital expenditure representing 70% of our total plan. Capex of this close to 4,900 crores has been capitalized. Our announced investment are progressing well and we anticipate timely completion.
As stated during our call, most of our carbon steel CAPEX is expected to become operational by FY26 with a stainless steel and aluminum projects on track for commissioning in the year F5 to 7. These investments are fully aligned with our long term vision, strategy and focus on deeper integration and improved efficiency and sustainability. We expect them to be earning equity with a contribute meaningful in the terms of revenue profitability from 2728 onwards. In conclusion, we are proud of how our team continues to deliver in the challenging environment while staying focused on on the long term values and commitments.
By consistency, executing strategic projects and optimizing efficiency, we are well in position to maintain our annual CAGR of close to 15%. Thank you for your continued support and trust. We look forward to engage with you in the upcoming quarter. With this I conclude my speech and I would request our CFO and Director Mr. Deepak Agarwal to to take us through the financial performance. Thank you so much Deepak. Up to you.
Deepak Agarwal — Whole-Time Director and Chief Financial Officer
Thank you sir. A very good afternoon to all the participants. I thank all of you for taking time out of this call to discuss the result for the first quarter of the current financial year in 2026. I will be glad to share a quick review of the reported consolidated Financial for the first quarter and the review for the financial year 2025 26. I am elated to share that in spite of ongoing geopolitical crisis and the US President Donald Trump induced tariff uncertainty which has negatively impacted the current market scenario jam, Being the exceptional market player as always has not only restrained its existing moment of growth and the result reinforce our trust in our strong business model which continues to generate healthy cash flow.
We expect with a reasonable strong demand recovery on the back of recent policy announcement made by the government towards railways, roadways, civil aviation, gas pipeline towards affordable housing and the incremental budgetary allocation to this sector is likely to drive the demand for both long steel and as well as stainless steel. I would now like to draw your attention to the financial of the company on a consolidated basis. In the first quarter of the current financial year on a consolidated basis, the company reported an operating revenue of 4,490 crore, a growth of 22.4% over quarter one of the last financial year.
The sales mix constitute a high percentage of volume from finished steel which accounts for 76% of the total revenue. Over the past quarter the price of product echoed steel have been subdued except for aluminum foil, the margin have remained at par. On the back of reductions in raw material sizes for our consumption, the company has been able to book an operating EBITDA of 580 crore. Sustainability increased by 18.98% over a quarter one of the last financial year and operating EBITDA margin in quarter one of the current financial year was 13.12. This margin mainly increased over the previous quarter on the back of our performance of a newly introduced product, pig iron and color coated seeds.
Our profit after tax for the quarter stand at rupees 291 crore which has seen an increase of 5.3% year on year. The pad margin in the quarter is 6.6% which is quite sound considering the current market trend and peer compression. At Sham Atlix we always follow disciplined capital allocation policy. Under this policy we remain invested 70% of our cash generated back into the business retained 20% as a liquidity surplus and return 10% to our esteemed shareholders and account of dividend. Our ambitious CAPEX plan have been laid out in the investor presentation and we are well tracked to execute them as per the expected timeline.
We have around 5,599 crore capex spending at capitalization and out of which we have spent 2,114 crore. In this quarter we spent 419 crore and the remaining 3,485 crore shall be spent over the next two years from our internal accrual and from cash generated from our operations. As mentioned by our CMB sir earlier, the company has declared an interim dividend of 1.8 rupees per share amounting to an outgo of rupees 52.24 crore which is pursuant to our disciplined capital allocation policy. We now have a consistent track record of declaring dividend since our listing in June 2021.
We look forward with the optimizations as we progress on our growth journey and we are confident of achieving robust performance and financial performance going ahead. Now I conclude my portion of speech through the floor open for the question answer session. Thank you, thank you to all the investors.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Dixit from Goldman Shacks. Please go ahead sir.
Amit Dixit
Good evening everyone and good set of members.
operator
Sorry to interrupt sir. So your voice is not audible. Can you please use a handset or you can.
Amit Dixit
Is it better now?
Brij Bhushan Agarwal
No sir, please carry on.
Amit Dixit
Okay, so a couple of questions from my side. The first one is regarding the couple of two resolutions. Fundraising resolutions amounting to 7,500 odd crores. Now the company reasonably, you know, cash rate and our pending capex is hardly 3500 crores. Just wanted to understand the genesis of these. Are these nearly enabling resolutions at this point in time or you have certain targets in mind for spending this money?
Deepak Agarwal
Yeah, yeah. As far as the fundraising resolution, this is basically enabling resolutions. Earlier we are enabling the resolutions of 3,600 crore which was expired because the resolution is valid for one year this time. Because in this board meeting we are also fixing our annual general meeting and subject to the approval of. We are just going to Enable our resolution as far as fundraising to the extent of 4,500 crore on account of various issues like QIP face credentials and any type of issues. That’s it.
Amit Dixit
There is another one 3000 crores through debt actually so I mean and this amounts to 7,500 crores. So wanted to understand that you know.
Deepak Agarwal
This is also an enabling as you all aware that the sham metric is always in the CAPEX mode and we have whatever we have announced our capex of 10,000 crore. Out of this 10,000 crore we. We have already incurred 7,000 crore and balance 3,000 crore will be incurred maybe in the next two years and we will definitely another round of CAPEX plan is in the table. Our committee, our CAPEX committee is working, evaluating and going forward as and when it requires. We are just leveling the resolutions as far as NCD or any type of gate instrument.
If it’s required then we can able to go ahead. Otherwise it is just like an.
Amit Dixit
No, sure. Thanks. Understood. The second question is essentially that I find a new product that is HR Pipe. Now this product I’m seeing for the first time in the. In our presentation also. So just wanted to understand whether it is an intermediate product that you would. That you are testing the market with and later on we would have some broaden commonity of this or is it you know something that we are trying to get into let us say ERW pipe segment or something. So just wanted a little bit more color on this and about future plans with respect to this HR Pipe product.
Brij Bhushan Agarwal
Amit, right now we just commissioned the PR plan. HR is just a byproduct. Presently we don’t have any such plan. To go into a buy business. These are the offcut we generally generates. When you buy the big HR coin you have to maximize the value of the byproduct. This is just a byproduct, nothing on the primary side.
Amit Dixit
Okay, understood. Thank you so much sir and all the best.
operator
Thank you. The next question is from the line of Shalin Kumar from UBS Securities India. Please go ahead.
Shalin Kumar
Yeah. Hi. Good evening everyone. Am I audible and clear?
Pankaj Harlalka
Yes, yes, very much audible.
Deepak Agarwal
Yeah.
Shalin Kumar
Congratulations. Pretty good solid number in the environment. So just want to understand a few things here. So I. I believe a part of this strong performance is coming from our new units for pig iron and color coded sheet. So is this. Have we captured the benefit completely in a quarter or there can be more to come in an incremental quarter. I mean like were they completely utilized their units or there’s still some scope to build in from existing capacity presently.
Brij Bhushan Agarwal
You can say there’s not much more head on on this unit presently because I think more or less it is capitalized. And today I’m very happy to say that, you know, we are operating the Pegaran facility at more than 120% rating presently. And, and this is something, you know, none of the company in India is operating the capacity of the Pegaran and this capacity, our full consumption is also very, very, very well in comparison with our peers. We have taken the best technologies and we have done a lot of R. And D setting up this plant and.
Brij Bhushan Agarwal
I’m pretty happy to see this. And in the time to come, yes, there will be lot of other improvement but you know, it will take little time because now we are in the monsoon time and in the first monsoon.
Pankaj Harlalka
Like we’ll be facing with our new setup.
Brij Bhushan Agarwal
So maybe in next six months, you know, the much more better picture, larger.
Pankaj Harlalka
Picture will be on the table.
Amit Dixit
Yeah, great. If I just ask like a basic question, what’s really the high occupant? Such a high utilization. Right. Are you needed to produce at a lower cost, strong demand? What’s driving this?
Brij Bhushan Agarwal
If you, if you see generally the blast furnace is operating at three and a half rate. You know, like I will just give you an example. Like, you know, today we have set.
Pankaj Harlalka
Up a 600 cubic meter blast furnace.
Brij Bhushan Agarwal
And for a 600 cubic meter Bangladesh furnace, the optimum capacity, what is guaranteed.
Pankaj Harlalka
Generally is close to 2,100 ton.
Brij Bhushan Agarwal
But constantly we are producing 2,700 ton today which is close to four and a half rating. You know, generally the size, visibly the capacity, the run rate is four and a half in comparison with 3.5. And we expect that we should be able to go to 3,000 tonnes or.
Pankaj Harlalka
Maybe little less than 3,000 tonnes.
Brij Bhushan Agarwal
Since this is a monsoon time, we don’t want to take a lot of, you know, new challenges because it’s the first monsoon and lot of generally the.
Pankaj Harlalka
Tearing issues are always on the front of, you know, the moisture and other concerns are there. But we are pretty sure we’ll be able to touch it to go to 2,900.
Amit Dixit
Got you. And also just want to understand the status of our cap power.
operator
Sir, your voice is cracking.
Amit Dixit
Am. Am I audible?
operator
Yes sir, audible now.
Amit Dixit
Sorry sir.
Deepak Agarwal
Just want to understand.
Amit Dixit
New captive power time. You know, what’s the current position on that?
Brij Bhushan Agarwal
We commissioned the. We have commissioned the first 90 megawatt of Odisha and the second 90 megawatt of Bengal plant is under the final stage of Commissioning. We expect that by end of August.
Pankaj Harlalka
Or early September we should be able to commission that as well.
Amit Dixit
So if I just. If you can help us, you know what kind of benefit will come on a quarterly or annually basis on this operation. Just because for, you know.
Brij Bhushan Agarwal
So most of our power plants are based on the. Our, you know, the fuel is reject.
Pankaj Harlalka
And.
Brij Bhushan Agarwal
Gases and all. So our cost of generation is close.
Pankaj Harlalka
To 2, 2 and a half rupees at kwh.
Amit Dixit
Okay.
Brij Bhushan Agarwal
It is going to increase the. Enhance the bottom line because the cost.
Pankaj Harlalka
Is going to be more competitive.
Brij Bhushan Agarwal
Whatever some percentage of import we are taking from the grid, we will be able to reduce it and we expect that this will be also enhancing our bottom line and will help us to be more cost effective.
Amit Dixit
One question. This last question I’m attending from the queue.
Amit Dixit
I didn’t get a chance to ask.
Amit Dixit
This question earlier also.
operator
Sorry to interrupt sir. So your voice is cracking again, sir.
Amit Dixit
Okay, I’ll line back the queue then. It’s tough here.
operator
Thank you. The next question is from the line of Preeti Agarwal from SK Associates. Please go ahead.
Preeti Agarwal
Hello. So the stainless steel wire segment has entry barriers due to customer approval timeline. Have you cleared any approvals in Q1 and which export market markets are being targeted? Also you mentioned 7,000 to 12,000 tonnes of EBITDA in buyer division and even rupees 30,000 per ton in select products. So what proportion of Your output in FY26 is expected in these higher margin SKUs.
Brij Bhushan Agarwal
In this steel wire? We just commissioned the plant and presently we are operating at close to 30, 35%. We are overcoming all the challenges of the stability and we also have started the export market, started exporting the material. So this year we’ll be stabilizing our market and I expect that, you know we should be able to sell close to 10,000 tons of wire this year which will be a very substantial growth in the terms of the new plant.
Brij Bhushan Agarwal
And new technology, what we are adopting.
Brij Bhushan Agarwal
And we expect that we’ll be able to ramp up to close to 20,000 tons for next year. And approvals are very general process.
Brij Bhushan Agarwal
It’s a generic thing.
Brij Bhushan Agarwal
I think there’s nothing to worry as such because whatever SHA Metallic has done.
Brij Bhushan Agarwal
We have done always a world class.
Brij Bhushan Agarwal
And all the best of the compliance in terms of, you know, machines and all the quality aspect has been taken.
Pankaj Harlalka
Well, thank you.
Preeti Agarwal
Okay, understood. And also you mentioned evaluating new project post FY27. So are you actively considering entry into HRC long product for construction or anything beyond metal?
Brij Bhushan Agarwal
We Are doing a lot of product on the construction. Our long product is more than 2 million ton capacity. So this has to grow up. We are increasing. We are revamping our existing plant. We are trying to see more better optimization in the terms of. Because by some kind of a modification you know you find like you know we can definitely enhance it to 10, 15% more. Apart from that the new plants are also under the planning stage which we are taking. In next couple of years we will be able to roll out that as well.
These are all continuous things day in day out. If you see every unit is having a volume growth year on year. This will continue growing in the average cagrade of around 15%.
Preeti Agarwal
Understood sir. Thank you so much and all the best.
Brij Bhushan Agarwal
Thank you.
operator
Thank you. The next question is from the line of Vikas Gupta from RJ Investments. Please go ahead.
Unidentified Participant
Hello.
Unidentified Participant
Am I audible?
Brij Bhushan Agarwal
Yeah, yeah.
Unidentified Participant
So my first question is on the stainless steel flag products project. When exactly do you expect to begin commercial production? And what’s the expected volume in FY26? And for the aluminum foil and fin projects what is the status of the oil stock planted battery foil line? Has any part of the 2.5 times capacity expansion already gone live.
Brij Bhushan Agarwal
Related to the aluminium plant? The construction is going on and we have declared that by end of 27.
Brij Bhushan Agarwal
We will be commissioning the plant.
Brij Bhushan Agarwal
So almost after a year more than later we’ll be commissioning the aluminium plant. And even the stainless steel plant has been also Projected end of 27 which is as of now it is under track. Maybe one or two months.
Brij Bhushan Agarwal
It can go a little plus or minus.
Unidentified Participant
Understood sir.
Unidentified Participant
And my further question is any update on the wire and bright bar divisions in the stainless steel segment that were to stabilize over 3 to 6 bar? Has customer qualification started?
Brij Bhushan Agarwal
I just answered this question before you.
Brij Bhushan Agarwal
Know it’s almost already started exporting and all and other things are under progress. We expect that everything should stable in.
Brij Bhushan Agarwal
Next three to six months.
Unidentified Participant
Understood. Thank you for taking my question. Thank you.
operator
Thank you. Before we take the next question we would like to remind participants to press one to press star and one to ask a question. The next question is from the line of Kunal Devendra Kothari from Nuama Wealth Management. Please go ahead. Kunal. You are not audible as there is no response from the current participant. We are moving towards the next participant. The next question is from the line of Karthikeya Pandey from BNK Securities. Please go ahead.
Brij Bhushan Agarwal
Yeah, yeah, yeah.
Kartikeya Pandey
Thank you for the opportunity.
Kartikeya Pandey
So I had a few questions.
Kartikeya Pandey
So first was that can we expect.
Kartikeya Pandey
Similar kind of EBITDA run in the.
Kartikeya Pandey
Coming quarters as well. And what is the pricing outlook for the second quarter?
Brij Bhushan Agarwal
This is a monsoon time and you know these three months are generally a challenging month, you know, starting from July and then September. But yes, it’s not going to have a major impact because we are also focusing on more and more cost reductions. It’s not going to have a very big impact. But yes, this is going to be a month.
Brij Bhushan Agarwal
Little bit of pressure will be there.
Brij Bhushan Agarwal
This quarter on the pricing side.
Kartikeya Pandey
Okay.
Deepak Agarwal
I would also like to add one more thing. As far as pricing, we will not consider only the pricing. If you see in our track record.
Deepak Agarwal
We will be always a volume growth.
Deepak Agarwal
Whatever be the EBITDA we are generating, we are adding our capacity and we.
Kartikeya Pandey
Are generating more EBITDA from our adding our product.
Kartikeya Pandey
Okay, and another question that I had was on the fundraise part. So can we assume that this 7,500.
Kartikeya Pandey
Crores of enabling resolution like will it.
Kartikeya Pandey
Be fully utilized for the capex plan?
Deepak Agarwal
As of now there is no such plan for utilization of this fundraising. We are just enabling the resolution subject to the approval of the shareholder as and when. If it is required then definitely we will achieve. But I as of now there is no plan for any fundraising or something. This is just like an enabling.
Kartikeya Pandey
Okay, thank you.
Kartikeya Pandey
That’s all the message.
operator
Thank you. A reminder to the participants, you may press star and one to ask a question. The next question is from the line of Devesh Lakhotia from Ikhikai Asset Manager. Please go ahead.
Devesh Lakhotia
Yeah, hi sir, thanks for the opportunity. So, couple of questions. One is on the aluminum segment. The add also I think was approved in terms of foils in the past couple of months.
Devesh Lakhotia
So are we seeing any improvement over there?
Devesh Lakhotia
Because at least in terms of margins.
Devesh Lakhotia
And volumes it’s not reflected as of now. And the second one is just wanted your thought in terms of the entry into wagons that we have announced with a 300 crore capex just rationale and the opportunity was.
Brij Bhushan Agarwal
See definitely there is a good spurt in the demand in the aluminium coin and the margins are definitely improving.
Brij Bhushan Agarwal
But you know people are carrying over with their own inventory on the sales side as well as on the buy side.
Brij Bhushan Agarwal
Generally all these things takes some transition.
Brij Bhushan Agarwal
Phase are there in the level of, you know, three, four months.
Brij Bhushan Agarwal
We’ll start seeing more and more better.
Brij Bhushan Agarwal
Numbers in the time to come.
Brij Bhushan Agarwal
And when we are talking from the wagon point of view it’s a very.
Brij Bhushan Agarwal
Small unit.
Brij Bhushan Agarwal
On the size of our Company and since we had a railway.
Brij Bhushan Agarwal
Siding we had complete infrastructure and with.
Brij Bhushan Agarwal
Such a low capex also enable us to utilize our stainless steel plates which.
Brij Bhushan Agarwal
Are going to be manufactured in our plant.
Brij Bhushan Agarwal
Basically it is more a strategy side and we will be able to enhance more value like one of the company only in the country which has the.
Brij Bhushan Agarwal
Capability to produce from ore to metal.
Brij Bhushan Agarwal
This is basically a concept where we.
Brij Bhushan Agarwal
Are seeing that, you know, lot of.
Brij Bhushan Agarwal
Stainless steel values have been introduced by.
Brij Bhushan Agarwal
The government and we are coming up with a flat product in the stainless steel.
Brij Bhushan Agarwal
We expect that, you know, it will help us to create more value for.
Brij Bhushan Agarwal
The organization and our shareholder by this forward integration.
Brij Bhushan Agarwal
Thank you so much.
operator
Thank you. Thank you. The next question is from the line of Kunal Devendra Kothari from Nuama Wealth Management. Please go ahead.
Kunal Kothari
Hi, good evening sir. Many congratulations for a great set of members. Few questions from my this is on regard to our key projects. So is it possible to share what are the three projects which are going to be executed in this question is are we looking at any other sector also to enter into it? Because earlier we are looking to enter into di pipe mill but we have not seen any capex going on over there. So that any thought on that and on top of it now because by year end we are going to end up with all the projects which is ongoing.
So do we have something in mind now because our company is now is on a bigger shape Instead of doing small small projects which we have been successfully doing it do we which can change the orbit of the company. Thank you.
Brij Bhushan Agarwal
First of all I must tell you the diversification what sham metallic is doing.
Brij Bhushan Agarwal
Is not a commodity diversification.
Brij Bhushan Agarwal
If you see the kind of business what we have created in the aluminum sector and going for the expansion in aluminium we are more than doubling the foil capacity and also going backward integration.
Brij Bhushan Agarwal
Putting up a downstream value added product which is 100% substitute like pins and.
Brij Bhushan Agarwal
Other critical aluminum component which is used in the automotive as well as in the railways and other sectors. So we are not working in this small orbit. We are working more on the quality and more niche product with the high return and more sustainable business. So we expect that this aluminium business in next couple of years should at least grow by more than 250%.
Brij Bhushan Agarwal
What we are doing today, first of.
Brij Bhushan Agarwal
All what we are doing we start with a very very small pilot model. We learn and then we expand. Even in stainless steel our orbit is very decent. We started with close to around 12001500 crores top line in the first year and now we are targeting of more than five and a half 6000 crores.
Brij Bhushan Agarwal
In next two to three years.
Brij Bhushan Agarwal
We learn the business and then we make a model and we make sure that all of our business yield should have a decent IRR and ROI return related to your ductile business? Yes, at present it is a very small capex for us. We have put this project on hold for some time because we are seeing some kind of challenge coming up in the businesses in respect to ductile. First of all some changes are there on the OPBC side where we are seeing that minus 400 is decreasing and apart from that we are also seeing that very big expansion is coming up in Dakta.
So we are just evaluating again I know we have not invested because these things we had been evaluating for more.
Brij Bhushan Agarwal
Than six to nine months and now.
Brij Bhushan Agarwal
We have decided that we will keep this project on hold and it is a very small capex in terms of the overall size of the capex what we have decided and any other questions?
Kunal Kothari
Yeah, I was looking at sir, any.
Kunal Kothari
Other sector we are looking to enter the way we have gone to backgrounds and what are the key projects which are going to be executed in FY20?
Brij Bhushan Agarwal
Yeah, this year we are, you know the plant product, this color coated business.
Brij Bhushan Agarwal
And HR and all what we are.
Brij Bhushan Agarwal
Doing right now we are more than we are doubling. So from close to 200,000 tons approximately.
Kunal Kothari
What we should be able to do.
Brij Bhushan Agarwal
This year we are ramping up to close to four and a half to 500,000 tons. So by end of this year we will be commissioning this project and we are also ramping up these stainless steel long product and the wired business. What we are planning to step back we will see some effect in this size also and they are also increasing some capacity in the existing manufacturing facilities by little modifications and some power plant.
Brij Bhushan Agarwal
Has to be commissioned this year, you know.
Brij Bhushan Agarwal
So this is also one of the.
Brij Bhushan Agarwal
Subject which is going to be there this year.
Kunal Kothari
Thanks yeah, please, yeah.
Deepak Agarwal
In addition to that as far as.
Deepak Agarwal
Key project which will be commissioned in.
Deepak Agarwal
Coming years I would like to light.
Deepak Agarwal
On this that this year 2526 majorly.
Deepak Agarwal
The carbon steel project will be commissioned.
Deepak Agarwal
The growth which will be happening in the stainless steel and aluminium the project.
Deepak Agarwal
Of aluminum and stainless steel will be commissioned in the year 2627.
Deepak Agarwal
Majorly the revenue, the major revenue will.
Deepak Agarwal
Come up at the end of the year 2627.
Kunal Kothari
And sir, lastly that same thing. Any other sector we are looking to enter?
Brij Bhushan Agarwal
Not yet, we are looking for a lot of things but Nothing to nothing has been decided. And about mining also we are looking.
Kunal Kothari
At the or iron ore or coal side also.
Brij Bhushan Agarwal
But really we have been allocated iron ore mines in Maharashtra and we are opportunist. We are looking for some coal mining opportunities. So once we see that because coal is available in plenty there’s no problem.
Brij Bhushan Agarwal
Of the coal availability and the food prices I don’t see the time to come.
Brij Bhushan Agarwal
But if we see something good on.
Brij Bhushan Agarwal
The mining side which has lot of lucrative advantage of logistics and quality and.
Brij Bhushan Agarwal
Help us to more create an optimization.
Brij Bhushan Agarwal
On our operating efficiency we might. But these are all the opportunities, nothing very concrete.
Brij Bhushan Agarwal
And so lastly obviously this is not.
Brij Bhushan Agarwal
For a short term. If somebody has to look for next five years after this expansion gets over can we expect something big coming in from our. So that you know we can maximize our balance sheet also that, that we.
Brij Bhushan Agarwal
Will give that we are thinking on the board right now and maybe pick up with us Diwali Dhamaka at the.
Brij Bhushan Agarwal
Time of Diwali.
Brij Bhushan Agarwal
You have to appreciate one thing. The only company in the metal sector which is kind of a debt free which doesn’t have any interest carrying forward which has a CAGR of more than 20, 25% year on year basis in last three and a half year from the revenue of 6,000 crores we are touching. We have touched close to 15 and.
Brij Bhushan Agarwal
A half thousand crores in three years.
Brij Bhushan Agarwal
So whatever we had promised, I don’t know about 100% but yes more than 90% we have delivered. You see the cost of CapEx what we have you know shared in our projection you see what is the computation project. So we are extremely careful and you know we are concerned on our returns and the value of our shareholders.
Kunal Kothari
That’s very true sir. That’s very true and all the best.
Kunal Kothari
For the future sir.
Kunal Kothari
Thank you so much.
operator
Thank you. The next question is from the line of Varun Bashra from SK Ventures. Please go ahead.
Varun Mishra
Congratulations and a good set of numbers. I had a couple of questions from Iron starting from like the. The color coated roofing sheet like which we have it. So like what has been the utilization Trend as of Q1? Sir if you could like you’re still in.
Deepak Agarwal
Yeah yeah yeah yeah.
Deepak Agarwal
We are utilizing the quarter one is 68 something.
Varun Mishra
All right, so 68 and like how could we see that throughout the year the utilization improving at what rate by the end of like FY26 how can we like what can we expect?
Brij Bhushan Agarwal
I’ll just brief you on this. The color capacity utilization. You know we have some Bottleneck like we are putting up a gal volume line number two and the present gal volume line. Whatever we are utilizing we are utilizing 100%. But the color coded capacity is 200%. So you know we’re expecting to commission the color gal volume line by end of this year. And after that we’ll be able to double the color business also. So these are under the expansion plan as per the business. Like we are developing the market. Everything is becoming you know tech.
It’s a branded market where you need to also control the supply to control the price. And also it is under the process.
Brij Bhushan Agarwal
The large finance which is at Jammu which has hit 100 capacity
Varun Mishra
sir. So like can you provide like as per the sales tonnage and outlook for.
Brij Bhushan Agarwal
FY26 you will be able to produce 120%. Like the capacity of the blast one.
Brij Bhushan Agarwal
Is what we have installed. And I’m sharing like we’ll be able.
Brij Bhushan Agarwal
To do close to 800,000 tons this year.
Varun Mishra
So anything like any guidance for further anything that you would add in.
Brij Bhushan Agarwal
I think just keep on watching your company, that’s all and pray God that we all have to do.
Varun Mishra
Well.
Varun Mishra
I had one more question. Just a moment. Yeah. So this is the laminated aluminum fins for the AC cooling. This the thing which we use. So like it is 100 import segment. So have we received any like tile orders or any OEMS for that? Have we signed it?
Brij Bhushan Agarwal
No, no, no, no. We don’t need to. We are in the process of setting up the plants. Once your plant is then you have to apply for the qualifications but you don’t have to look back because we have tied up with the world’s best technology supplier. And we don’t have to worry. We are seeing all our units. Whatever we set up we never compromise.
Brij Bhushan Agarwal
On the technology side.
Varun Mishra
All right, that’s my answer. All the best for the future.
Varun Mishra
Thank you.
operator
Thank you. The next question is from the line of Rakesh Roy from Boring amc. Please do it.
Rakesh Roy
So my first question regarding. Sir, do you see we are in bottom out for pricing pressure and we.
Rakesh Roy
See any price improvement from second half.
Brij Bhushan Agarwal
Your question is not clear Mr. Roy. Sorry.
Rakesh Roy
Hello.
Rakesh Roy
Are you seeing any bottom out of.
Rakesh Roy
Pricing pressure which we are facing currently and do you see any pricing improvement from X2?
operator
Sorry to interrupt sir.
Brij Bhushan Agarwal
I’ll give the answer.
Brij Bhushan Agarwal
We.
Brij Bhushan Agarwal
We never see any pressure. We see always the opportunity in the pressure. So everything is going on the result and God willingly everything will go right. There’s no pressure.
Rakesh Roy
Okay.
Brij Bhushan Agarwal
So margin funds for expertise.
Rakesh Roy
How much?
Brij Bhushan Agarwal
Sorry for margin for FY26.
Rakesh Roy
How much we are expecting, sir, for FY26.
Brij Bhushan Agarwal
As far as margin.
Brij Bhushan Agarwal
We can’t say all these things. Because you know how the geopolitical situation we have to see in the worst of the time also we are working.
Brij Bhushan Agarwal
Between 11, 12, 13% EBITDA.
Brij Bhushan Agarwal
Watching the days I don’t see anything.
Brij Bhushan Agarwal
Will go further down.
Brij Bhushan Agarwal
We expect that we should be able to do decent. It’s very difficult to project anything on the margin side. But yes, I don’t see anything on the downside.
Brij Bhushan Agarwal
Hence for the.
Brij Bhushan Agarwal
For this.
Brij Bhushan Agarwal
For this year. Okay, so maybe expect for 30% margin for 26.
Brij Bhushan Agarwal
30% margin.
Rakesh Roy
Yes. Okay. Thank you. Sir.
Brij Bhushan Agarwal
You investors put a lot of pressure on margins. People are never happy.
operator
Thank you. The next question is from the line of Patanjali Srinivasan from Sundaram mutual fund. Please go ahead.
Patanjali Srinivasan
Thank you for the opportunity, sir. Very good set of numbers. I want some data points. So what is our capacity mix between CPP and WHRB currently and post our expansion, where would it be in terms of megawatt.
Deepak Agarwal
As far as mix of captive power plant and outsourcing power. We are always the 82% of our captive sourcing. And we are sourcing power from outside is around 20.
Patanjali Srinivasan
Sir. No, I’ve been asking about outside in captive.
Brij Bhushan Agarwal
Actually you must understand in our country power model we are hardly using coal. We are majorly using wash rejects and the byproduct of the wash and the other plant.
Patanjali Srinivasan
Okay.
Brij Bhushan Agarwal
And portion of the fuel, you know, is also the middling and the reject what we generate from the washery.
Patanjali Srinivasan
Understood.
Brij Bhushan Agarwal
So the unique thing in our business is, you know all our power plant.
Brij Bhushan Agarwal
Are set up where we are using.
Brij Bhushan Agarwal
More than 70 to 80% of the byproduct. And 20% is the fuel. In the terms of low grade coal, what is used to sustain the heat rate in the boiler and other power.
Brij Bhushan Agarwal
Comes from the waste heat recovery from the king.
Brij Bhushan Agarwal
At this point of time it is very difficult for me.
Brij Bhushan Agarwal
Because you know.
Brij Bhushan Agarwal
But to say how much we are going to generate from the gas we fuel. Because fuel is also a byproduct. But you are seeing the price are so competitive where we are generating power. The price at what we are generating power units less than two and a half rupees a unit.
Patanjali Srinivasan
Correct.
Brij Bhushan Agarwal
So on an average you can say maybe 30, 35% or 40% must be washing. But I’m not 100% sure. I have to check because every day we are commissioning some plants and all.
Patanjali Srinivasan
What is the data capacity I would like the capacity, sir. The utilization is different. I get what you’re saying. But like the capacity like in our current 467 megawatt how much would be from waste heat and how much would be from thermal power plant?
Brij Bhushan Agarwal
The waste heat recovery should be close to 35 to 40%.
Patanjali Srinivasan
Okay. Okay.
Pankaj Harlalka
Post the expansion it should reverse. So today it’s 60 40. It will reverse to around either 5050 or 40 60. So we’ll be having a higher WHRP post the 90 megawatt implementation.
Patanjali Srinivasan
Sure, sir. Understood. And just one last question. Are capex for stainless steel and aluminum. What timelines are we expecting the plants to get commissioned by end of 27 years? Okay. Okay. Sure, sir. Thank you, sir. Very good numbers.
Pankaj Harlalka
Thank you.
operator
Thank you. The next question is from the line of Gaurav Gandhi from glorytale Capital Management. Please go ahead.
Gaurav Sanjay Gandhi
Thanks for the opportunity and congratulations on.
Gaurav Sanjay Gandhi
Great set of numbers, sir.
Gaurav Sanjay Gandhi
These days there are a lot of talks about large ship vessels manufacturing in India. So whether this ship grade steel is.
Gaurav Sanjay Gandhi
Manufactured in India or not and how.
Gaurav Sanjay Gandhi
Are you looking at this opportunity?
Brij Bhushan Agarwal
Honestly speaking I have not. We have not evaluated this. So I cannot comment anything on this.
Brij Bhushan Agarwal
Okay.
Brij Bhushan Agarwal
These are very different grades. These are all basically the carbon plates where we are not in the process of, you know, present manufacturing. But in the time to come, once we have any new business plans we.
Brij Bhushan Agarwal
Will be able to share that.
Brij Bhushan Agarwal
But presently no.
Gaurav Sanjay Gandhi
All right, thank you.
operator
Ladies and gentlemen. This was the last question and I now hand the conference over to Mr. Omkar Baghre from MUFJ N. Time for closing comments.
Unidentified Speaker
Yes, thank you for joining us on call today. I would like to thank the management for sparing the time and answering all the queries. Today we are MUFG in time Investor relations advisors to Shyam Metallics and Energy Limited. For any queries please feel to reach out to us.
Deepak Agarwal
Thank you. Thank you to everyone.
operator
Thank you on behalf of Xiam Metallics and Energy Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.