Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Shyam Metalics and Energy Limited (NSE: SHYAMMETL) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Pankaj Harlalka — Head of Investor Relations
Brij Bhushan Agarwal — Chairman and Managing Director
Deepak Agarwal — Director Finance and Chief Financial Officer
Analysts:
Amit Dixit — Analyst
Unidentified Participant
Ashish Kejriwal — Analyst
Vikash Singh — Analyst
Rajesh Majumdar — Analyst
Ruchit Agrawal — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to the Q4 and FY26 earnings conference call of Sham Metallics and Energy Limited hosted by MUFGNTIME. As a reminder, all participant lines will be in the listen 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 Lalka from Shah Metallics.
Thank you. And over to you sir.
Pankaj Harlalka — Head of Investor Relations
Thank you. Good evening ladies and gentlemen. I, Pankaj Hiddlalka, Head of Investor Relations at Shyam Metallics welcome you all to the earnings conference call to discuss Q4 and full year FY26 results. I hope you all had an opportunity to review our press release and the investor presentation read along with the Safe harbor statement which are available under the Investors section of our website and the same are accessible on the BSE and NSC websites to discuss the results today I am joined by Mr.
Bridge Bhushan Agarwal, Chairman and Managing Director Mr. Deepak Agarwal, Director Finance and CFO and Mr. Sumit Ketan from MUFG in time, our Investor Relations partner. Now I would like to invite Bridge Bhushanji to provide his perspective on the performance of the fourth quarter and FY26. Thank you. And over to you sir.
Brij Bhushan Agarwal — Chairman and Managing Director
Thank you. Good afternoon everyone. Welcome to Sharp Metallica Energy Q4 FY26 earning conference call. I will begin with a brief overview of the industry landscape and operating environment both of which continue to evolve amid global and domestic development. Globally, the steel industry has remained influenced by trade related action across key market. While the ongoing Middle east conflict has moderated demand in certain regions. These factors have contributed to a redirection of steel flow into the alternate market resulting in the price pressure across geographic and heightened volatility in global steel prices.
Turning to India, the global steel demand environment remains robust and encouraging. Demand continues to support by broad based strength across major steel consuming sector including infrastructure led construction activity, manufacturing activity, urbanization with spending on huge infra project such as road, railways, power now coming to Shyam Metallic. FY26 has been a very significant year for us marked by a strong project execution, strategic expansion, operational stabilization. During the year we achieved meaningful milestone across our manufacturing facility with key highlights including the completion of PRM complex at Jamuria and the successful commissioning of the blast furnace at our Kharagpur plant for F526 our sales volume stood at 4.94 million tons reflecting a strong year on year growth of 26%.
In Q4 Q6 sales volume registered a growth of 22% over the smart period of last year. Importantly, we maintained sales mix across product categories while continuing to optimize realization through a sharper focus on the higher value added product. The strong volume expansion translated into healthy growth in both revenue and profitability. For the full year FY26, the revenue grew by 22% while the profitability increased by 17%. For Q4 to 6, revenue rose by 27% year on year while profitability growing about 42%.
This performance under plan by our integrated operation diversified portfolio, Sustained operational discipline continuous focus on cost efficiency we also made substantial progress on strategic growth initiatives during the quarter. Phase 2 Operation of the CRM complex at Jamuria was successfully commissioned. In addition, we expanded our aluminium operation at Pakuria to the commissioning of downstream heat treatment process. This development has significantly and meaningfully enhanced our value addition in the downstream capabilities and further strengthening our integrated manufacturing platform and supporting a long term growth aspiration.
Reaffirming our commitment to a long term growth, the Board has additionally decided for a new capex investment of 2,700 crores. This strategic investment is aimed at a deepen our presence into the value added and specialty steel segment, downstream stainless steel capability and accelerating the transition towards a higher value added product with better margins. The proposed capex will be primarily funded through internal acquirers reflecting our discipline and capital efficient approach towards value expansion.
This investment remains fully aligned with our product strategy of driving profitable growth through premiumization, downstream integration and prudent capital allocation. We welcome the changing democratic and policy environment in the State of West Bengal and remain extremely optimistic about the state next phase of industrialization and growth. As a company with deep root in the State of West Bengal, we expect a more growth oriented ecosystem to support faster development in the forms of infrastructure creating new investment inflow and will add more value to the organization.
With our continued expansion across various metals, specialty alloy, stainless steel, aluminium, railway infrastructure value added product. We believe both the state and the company are well positioned for a stronger long term commitment. In closing, we remain firmly focused on the substantial growth improving profitability creating long term value for our shareholders. We sincerely thank you for your continued support Best and we look forward to engaging with you in the quarters ahead with this.
Now I conclude my speech and I would request our CFO Mr. Deepak Agarwal to take up to the financial performance. Thank you.
Deepak Agarwal — Director Finance and Chief Financial Officer
Thank you sir. Good afternoon everyone. Thank you for joining us Today for Shah Metal Energy Limited earning calls for the fourth quarter and full year ended 31st March 2026. I am Deepalgarwal, Chief Financial Officer of the company and I am delighted to present our financial result. On behalf of the Board of Directors and the entire Sham ATLI family I will take you through our key financial highlights for the fourth quarter and the full year that is 2526 followed by a discussions on our capital allocation strategy, balance sheet strength and the strategic investment we are making for our next phase of growth.
Our Chairman and Managing Director Sri Brusher Agarwal Ji has already shared his vision. I will now add the financial dimension to that story. First we will discuss about the quarter four of the current last financial year. Ladies and gentlemen, I am proud to report that the quarter four of the last financial year has been one of our strongest quarter on record across every critical financial metric. Let me walk you through the highlights. The revenue from operations 5,240 crore 27% growth year on year and 19% growth on quarter on quarter.
When we talk about the EBITDA the company has achieved 756 crore with a growth of 33% on year on year basis and there is a growth of 40% on a quarter on quarter basis. When we talk about The EBITDA margin 14.4% expanded from 13.8% from the quarter four of the last financial year and 12.2% in quarter three of the last financial year. When we talk about the operating EBITDA the company has achieved 727 crore a growth of 41% on year on basis and 49% on a quarter on quarter basis. As you all aware that there is substantially is treasury is there.
Therefore our total EBITDA is 756 crore. The operating EBITDA margin is 13.9% versus 12.4% in quarter four of the last financial year. When you talk about the profit after tax 312crore 14% growth on year on basis and 58% growth on quarter on quarter basis the PAT margin is 6% of against 5.3% in quarter four of the last financial year. What makes this number particularly gratifying is not just the magnitude of the growth but the quality of it. Our margin expansion has been achieved through disciplined cost management, improvement in realization across most product categories and a favorable shift in our product mix towards higher value add segment.
Now I will discuss the full year performance that is 2526. Therefore the annual turnover for the whole year is 18,552 crore. That is 22% growth on year on basis. Full year EBITDA is 2,537 crore. There is a growth of 21% full year EBITDA margin is 13.7% against 13.8% in the financial year 25. The residing sliding input cost pressure Full year operating margin is 2,333 crore that is 25% on year on year basis. The full year operating EBITDA margins 12.6% against 12.3% in the last financial year. The full year path is 1,061 crore 17% growth on year on basis.
The full year Basic EPS is 38.1 rupees per share against the 32 point per share last financial year. Crossing the 8000 crore of revenue threshold and delivering over 1000 crore of pad for the full financial year. Underscore the scale and earning power that Siam Atlix has built over recent years. This is a business firing on all cylinders. Now we will discuss about the volume growth and per ton realization. The revenue growth is always most meaningful when it is accompanied by a genuine volume expansion and that is precisely the story here.
Overall the volume grew by 22% on year on basis and quarter 426 validity. Both our capacity expansion investments and our strengthened market positioning let me highlight some of the most significant volume growth Volume achievement during the quarter four of the current financial year the CR coil volume surged by approximately 200% on year on year basis reaching 50,344 tonnes a testament to the ramp up of our CRM complex at Jamuria. The pig iron volume grew by 200% on year on basis that is 23499 tonnes reflecting the strongest domestic demand and our expanded product capabilities.
Iron pellet volume grew by 40% on year end basis by 278341 tonnes. Driven by operational efficiency and improved realization, the stainless steel volume grew by 13% year on basis to 27,287 ton. Continuing our premises journey on per ton realizations we saw healthy improvement across most product line. Aluminium realization improved by 16% year on year basis I.e. 4.7461 rupees per ton. Stainless steel realizations improved nearly 17% year on basis. CR coil CR seat reliacer rose approximately 15% on year on basis I.e.
78,513 per tonne. These improvements reflect both firm underlying demand and our deliberate push towards value added and specialty product with the superior margin profile. Let me now walk through some key observations on our consolidated profit and loss Account first revenue mix Our steel product segment continue to anchor the business contributing approximately 75% of our total revenue mix in both quarter four and the full financial year. Within this, carbon steel remains our single largest contributor at approximately 39% of revenue followed by pig iron, iron pellet, specialty alloy and stainless steel.
The growing contribution of shear seed stainless aluminium is deliberately strategic shift one that is enhancing our blended margin profile. As far as cash generations, I am particularly pleased to report that our business continued to be a robust cash generation. The net cash generated from operating activity for the financial year 2530 is approximately 2000 crore on a consolidated basis and improvement over the prior year reflecting the strong earnings working capital discipline. This cash generation capacity is what gives us the confidence to commit our next phase of capital investment.
The Shah Metallic Energy Limited continued to maintain a strong balance sheet and healthy return profile in the financial year 2526 despite being a peak capex cycle. The company reported ROCE 16% and ROE 13% in the financial year 2526 reflecting a disciplined capital allocation, operational efficiency, prudent leverage management that resulted into reflection of our working capital days from 22 days to nine days. Our financial architecture is designed to support growth without compromising financial.
We run a fundamental conservative balance sheet low leverage, strong operating cash flow and adequate liquidity buffer. Now we move into the dividends as you all aware that the board of director has recommended a final dividend of rupees 2.7 rupees per equity share representing 27% of the face value of rupees 10 each for the financial year 2526. This recommendation is subject to the approval of shareholder at the ensuring annual general meeting. This dividend declaration reflect our confidence in the company’s financial health and our commitment to consistent reward our shareholder while simultaneously investing in long term growth.
We believe we strike the right balance between capital return and value creation now moving to the strategic capex. Now let me speak about the forest the most exciting announcement in our region. The board has approved a Freight capex is 2,700 crores for our next phase of growth. This investment comprising two major projects one is the long specialty wire bower mill we will setting up a long specialty wire mill with a furnace at Kharagpur with a capacity of 8 lakh ton at an estimated capital outlay of 900 crore.
This project is targeting to commissioning by 31st March 2029. Second one is the stainless steel expansion and downstream facility at Sambalpur. We are expanding our stainless steel capacity to 0.6 million terror Sambalpur complemented by world class downstream capability including cold rolling mill, precision cold rolling mill, hot rolling, annealing and pickling line and a bright annealing line. This estimated investment is 1800 crore with the targeting commissioning date is March 2029. This project will be funded majorly from our internal accrual and which is also mix of.
If any debt is required then we can take otherwise it will be served through our internal accrual. Given our strong operating cash flow generation demonstrated by over 2000 crore in operating cash flow in the financial year 2526 alone we are well positioned to fund this CAPEX program while maintaining balance sheet discipline. The involving democratic and economic involvement in West Bengal present a positive outlook for industrial growth and a long term development. As a company with a significant manufacturing presence in the state.
Shyam at least remains encouraged by the potential for stronger infrastructure creation, higher investments, improved industrial activity and employment generation. We believe this environment can further support the company’s ongoing expansion plan, downstream integration initiatives and value added product strategy while also contributing meaningfully to the broader economic progress of the state. We now look forward to taking your question answer. Thank you.
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 the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and two 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 Schacks. Please go ahead.
Questions and Answers:
Amit Dixit
Yeah hi, good evening sir and congratulations for a great set of numbers. Thanks for the opportunity. Couple of questions from my side. The first one is on the on the volume growth. So last year volume growth was quite splendid particularly of value added products driven by CR coil. Now this year what are the key elements of volume growth? Also if you could highlight the major capacities that would get commissioned in the course of the year that would be great. That is my first question.
Brij Bhushan Agarwal
First of all as in volume growth we are expecting half a billion ton of iron making facility from the DRI side is going to be commissioned this year which will also have an effect on the power generation, waste sheet recovery and we expect the power generation will also go up from the steel side. There will be a substantial growth in the billet manufacturing facilities. What we have commissioned now we will see a growth in the billet as well and there will be a partial growth in our final product like structured TMT with Upgradation and some more feeding of raw material into the steel segment in CRM complex.
Since we are going to commission the gal volume line within this month end or maybe early next month. So we’ll see there will be a substantial volume growth in the flat product in the gal volume as well as in the color coated. We expect that color coated is going to be having the almost the double volume what we saw in this year last year. Apart from that there will be a substantial value we will see from the cost side also because there will be a lot of new power plants coming up which is going to be commissioned as well.
And so whatever little power we are buying from the grid we’ll see there will be a effect, positive effect on the cost side of the power. I think majorly apart from this aluminium plant also will be commissioned this year. We have set up a new caster with foil stock and foil plant. So we’ll see this year the plant will get commissioned and slowly, slowly it will be stabilized. So there will be a lot of action this year.
Amit Dixit
Great, wonderful. That’s very well explained. The second question I had was on actually aluminum. Now we have seen aluminum prices remaining very robust worldwide. For us we are actually converters. So how do you see margins? Is it like a pass through for us or we get some incrementally higher margins on the elevated aluminum price?
Brij Bhushan Agarwal
I think we should see as a pass through, you know, maybe because of little bit more advantage we get because the working capital involvement and the kind of integration what we are doing from the backward to the forward will see a lot of value coming up because we’ll be now we are buying the foil stock. Once we make our own foil stock we’ll see the margin also increasing. But related to your aluminium price we should not be very, very much worried whether we are going with a backward integration where we will have a better margins.
And also you know, with the prices of the aluminium is concerned it is going to be almost faster.
Amit Dixit
Okay, great to know. Just one last question if I may. I just wanted to get an idea on the capex for this year and next one if you.
Brij Bhushan Agarwal
So we have declared a capex like in Ramsaroop we commissioned a blast furnace. Now we are planning to set up a SMS shop and the steel plant which is going to be of little less than a million ton to be more prescribed 800,000 tonnes. The plant is expected to be commissioned by end of next year and this will have a substantial capex setting up the plant. But since it is now a brownfield project and we will be very efficiently we’ll be able to do this capex like we have announced 2,700 crores capex in this stainless steel downstream activity as well.
Then we are seeing, you know, comprising of Ram, Saroop and stainless steel and all. So all these capex is going to be spread in next two, two and a half years. So apart from that we are setting up a flat product HR plant. Generally to set up a 2 million ton of HR plant it generally costs close to 16,000 to 18,000 crores. But in our case only from the HR side we are almost you know, one third capex what we have declared because we have all the brownfield facilities and we have all forward and backward integration is already integrated.
So there’s nothing to worry. We have a substantial treasury, we are doing a good ebitda and year wise year you are seeing that, you know there has been a substantial increase on the numbers and also as on this it’s looking very comfortable in case we find there is some kind of a shortfall. And also we are almost a debt free company so buying some kind of a short term debt is not going to be an issue. But as on date I don’t see that will be a problem till we take some more project ahead. Thank you.
Amit Dixit
Great
Operator
Addition. Thank
Amit Dixit
You.
Brij Bhushan Agarwal
He was having. One more question, please, please.
Amit Dixit
The one more question I had was on stainless steel. Now if I look at the EBITDA per turn of stainless steel I know it’s not great to look at it from a quarter to quarter basis but one of your peers had reported and their EBITDA Burton actually grew quarter on quarter. Now in our case we have seen a slight contraction in EBITDA Burton. So just wanted to understand whether it is, you know, EBITDA burden contraction associated with some cost during the ramp up phase or something or how do we see margins going ahead?
Because stainless steel prices have risen and one of your peers has given a very optimistic guidance for FY27.
Brij Bhushan Agarwal
First of all they are into the flat product, we are into a long product. And this is, this was a very old plant which was taken in the NC through NCLTE few years before. So we are here, we are almost making you know, all the stainless steel from the scrap. And right now our new facility of stainless steel which is coming up in our Odisha plant, we have a complete integration like 80% of the raw material is what we are going to feed from our existing plant. And we are getting into a very higher value added product.
So we will have a Blend of long product and flat product. But yes, in the time to come with our power cost of less than two rupees where we are in Indore we are paying more than six rupees or seven rupees. We are buying scrap. It’s not that big. Mega size project. And also definitely it will have a very positive impactful, you know, differences when we commission our Udita stainless steel plant.
Unidentified Participant
Okay,
Amit Dixit
Great sir, thank you and all the best.
Brij Bhushan Agarwal
Thank you.
Operator
Thank you. The next question is from Charlene Kumar from UBS India. Please go ahead.
Unidentified Participant
Yeah. Hello. Hi sir, congratulations on a very good set of numbers to both Oshanji and Deepak Ji. A bunch of questions. New capex which you have announced on the asset side both. So what is the end industry are we targeting in both the cases? Endless
Brij Bhushan Agarwal
Steel? Basically. Yeah, yeah it’s very. We are targeting pipes and tube market, decorative market of pipes and tubes. There is a specialty pipe market also which is for the precision pipe and all. Then some portion is on the decorative side of aluminium, stainless steel, what is used in the elevators and all. You know all these are the decorative part and apart from that, you know some of some, some special category will be catered to the utensils market also and some in the export defense side also.
Unidentified Participant
Then the two question arises here. One, what kind of a profitability or return ratios on those capex you’re seeing it seems like these are value added product. Second, these will be little different from our current channel sales. Is that the right assumption? So how are you plan to to the sales here or. You know I want to target the customer set.
Brij Bhushan Agarwal
This is a B2B market. Presently all the tube manufacturers in country and outside the country there’s a big market for the stainless steel pipe. So we’ll be serving the serving to these kind of a customers in the tube and pipe segment because we are not thinking to get into a stainless steel tube and pipe because it is a very small business and not a very scalable or a big volume where we need to interact ourselves. And apart from that it’s a very open market. India is growing and there’s a good demand and we are seeing that more and more decorative and being one of a very cheap product.
You know it’s not very expensive on the decorative segment and we are seeing in interiors and everywhere around the stainless steel penetration is increasing. So we’ll be able to build up more and more penetration in this category.
Unidentified Participant
Any sense on what kind of a bit of return or return ratios you’re looking for this kind of investments
Brij Bhushan Agarwal
EBITDA generally, you know this is a very interesting business. So I would say generally it plunder from around 15 to 20,000 rupees a ton. But our overall calculation is in the range of 12 to 15,000. But it’s fetching more in this segment because if you are making everything from the iron ore to the final steel, the EBITDA should be more than 80,000. It’s going to be interesting product and apart from that 80% of the ingredients you are using from your existing product, you know the steel, the specialty alloy, ferro alloy power is yours,
Deepak Agarwal
The
Brij Bhushan Agarwal
Brownfield. So it’s nothing where you are building up a raw model inventory within your capital cycle. So the yield of the capital is going to be definitely better and it’s also going to create more sustainability with this kind of a business. If you enter and you know there’s going to be a lot of potential in the near time to expand and to invest more precious money in the value added and more sustainable.
Unidentified Participant
Got it. Fair enough. Sir. One more thing. In this quarter we can see, you know there’s a clear uptick in the realization for most of our segments. I just want to pick your view here because we have a lull for quite some time or you know there’s. There’s a softness in the realization. So to think these realize there is still room for this utilization to move up from here for most of your products, you think then they will be stable or you see that, you know there’s a risk for the given the global scenario and all
Brij Bhushan Agarwal
There is no chance to go above from this level because you know now we are entering into a monsoon session. So and apart from that I think the market is pretty good. Like if you see we have the EBITDA is close to 14% overall. You know I think it’s a very decent. Might be 1% here or there doesn’t matter. And for us if you really ask me, market is in none of buddies control. We are more focused on our efficiency and cost. But to be more optimistic and realistic I would say the business will remain stronger because today still we are you know, caged by the geopolitical issue.
There’s a lot of restrictions on the logistics side, export market. There’s a lot of spending is going to come globally like earlier none of the countries to spend, you know, on the development side and all with the new revolution and new age. What I see with this multiple war crisis and all I see India is going to have a good say in the international participation and the Metal company in India will grow domestically with the internal demand and also will have an edge and you know, the opportunity to participate internationally also in a very big way.
Unidentified Participant
Definitely. And I think there’s a change in political atmosphere investment goal as well. I hope that that also favors us. One more bit, like if I look at the quarter ebitda, it’s very good and if I analyze it, we will be, you know, it’s like we are crossing more than 2,800 crores. So how should we think about it? So one leg is this where we have already achieved this number. And then there are incremental things which are happening. For example, when I look, I was looking at your presentation, the second phase of CRM has only started in April.
So I think it was not a contributor. If my assumption is right, it was not a contributor in the fourth quarter. So the benefit should come in FY27. Then again, as per your presentation, you should be finishing your phase two of aluminum right within FY27. So some benefit of that should come. So then if I put all these things together, can we look or expect a bigda of more than 3000 crore for FY27?
Brij Bhushan Agarwal
Shelley, when I told you last time, I remember I was always speaking close to 1800-2000 crore EBITDA for this year. You remember all my. Yes. And fortunately we landed into 2425 including other income. And on this realistic term it was on the operation was close to 2300 plus. Correct?
Unidentified Participant
Yes.
Brij Bhushan Agarwal
I would be little bit more conservative, you know, like I don’t want to say because you know, for us I’ve been always very, very conservative and prudent on my fe, on my project and on my targets and all.
Unidentified Participant
But what’s wrong with my assumption here? If I simply say that I understand you,
Brij Bhushan Agarwal
You’re not wrong, you’re not wrong. But maybe nearby maybe plus or maybe 5% here and there. I expect you know,
Unidentified Participant
You’re not wrong.
Brij Bhushan Agarwal
You’re right.
Unidentified Participant
Any sense, if we can, if we can get from you or Deepak Ji, if not now, even later is helpful. What kind of a bit of contribution you’re expecting from the CRM and aluminum plant in FY27 that can help us like have some set of contribution from them. Is it possible to share?
Brij Bhushan Agarwal
I think the CRM EBITDA is going to be close to 10 to 11,000 rupees per ton this year
Unidentified Participant
From
Brij Bhushan Agarwal
The. And the aluminium EBITDA I think should remain between 35 to 40,000 rupees.
Unidentified Participant
Because this year.
Brij Bhushan Agarwal
Yes, Please
Unidentified Participant
The timeline of aluminum then because it’s still in the commission. So can we expect it to happen in first half of FY27?
Brij Bhushan Agarwal
First up we will be starting commissioning and all. So we’ll start seeing the effect in the second half.
Unidentified Participant
Okay.
Brij Bhushan Agarwal
More better and some because you know the all these high tech plan it takes time
Unidentified Participant
And it’s
Brij Bhushan Agarwal
A green for the new foil plant and all has come. So this will take time. But yes definitely it will have more and more positive impact time to time with the quarter to quarter
Unidentified Participant
Just last bit and then I joined back the queue on the battery foil. So we our product is qualified with the customers.
Brij Bhushan Agarwal
Yeah, yeah. We are all done.
Unidentified Participant
I’m not sure if you would like to but would you like to share the name of the customers who are liking you?
Brij Bhushan Agarwal
We have done this. You know there’s a non disclosure agreement.
Unidentified Participant
Sure.
Brij Bhushan Agarwal
Because. But still you know we had been qualified long back once we see a battery line coming up middle of this year and all. So we will be penetrating in the battery
Unidentified Participant
And there will be more than one customer.
Brij Bhushan Agarwal
Sorry,
Unidentified Participant
There will be more than one customer.
Brij Bhushan Agarwal
Two to three customers are there.
Deepak Agarwal
In addition to this as far as far as future guidance for ebitda the sir is always being very very conservative. But you can see in our finance with the commissioning of aluminium, with the commissioning of CRM with the commissioning of 0.5 million tons point iron and with the as well in the last financial year the full year impact will come up in this financial year. So definitely we will be achieved whatever we have achieved in the last financial year. The sir will always say on a very conservative side because we always believe only in the committing less, delivering more following on this policy.
Unidentified Participant
I think this year
Brij Bhushan Agarwal
You know we will be very comfortable with our growth close to 30%. You know over this year.
Unidentified Participant
I can like if. If all your project execute and if the realization doesn’t really hurt then I don’t think so. Any reason that why we should not have a 30 network? Profit growth, operating profit.
Deepak Agarwal
Yes. Will always believe on the volume growth Lamenting will never depend on the realization side. If you look into our last fourth quarter financials you will find we will be always giving the sustainable EBITDA or sustainable volume growth is there over a period of time.
Unidentified Participant
Sir. Good. Good show sir. Thank you so much. I’ll join back the queue. Thank you.
Deepak Agarwal
Thank
Operator
You. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. Should you have a follow up question. We Would request you to rejoin the queue. We have next question from Ashish Kajiwal from Nuama Wealth Management. Please go ahead.
Ashish Kejriwal
Hi. Thanks for the opportunity and many congratulations again for good set of numbers and delighted to hear about your midterm growth plans. Thank you so much for that. Thank you,
Brij Bhushan Agarwal
Ashish. I hope you’re happy with all your questions all the time and delivery.
Ashish Kejriwal
Yes sir. So far it’s doing good. So I have two questions. In fact if I look at our inventory as well as payable days that has increased significantly in this quarter or maybe in this year. So is there any change in the strategy? I understand that maybe you know, we may have booked some other some higher iron ore coal in order to take advantage of a lower prices earlier which could have increased our inventory days. Is it so? And what about the payable days, why it has increased? So any change in the business strategy on that front?
That’s my first question.
Deepak Agarwal
I can take you this question as far as sharply increase in the inventory only because of you look into the last year financial. There were no commissioning of blast furnace. There were no commissioning of CRM. The one factor is we are positioning the raw material of CRM as well as the blast furnace cooking coals and something. And in addition to this also we are taking the positioning of iron ore, iron making raw materials. That is if you look into our financials also our inventory level in the last quarter was 99 days.
Now we are taking the positioning of 123 days of inventory days. This is the only reason for increasing our inventory.
Ashish Kejriwal
Okay, so we have taken higher than what is warranted as of now and it will be liquidated in first or second quarter. Am I right in that? Correct. Okay. And what about payable data
Deepak Agarwal
Approximately is like 130 days. 130 days.
Ashish Kejriwal
Yeah. So it has increased significantly from our normal scenario. So is this a one off type or.
Deepak Agarwal
No, this is not a one of. We have a very good credential. Our credential is there to we will be whatever. We are procuring most of the raw materials on credit basis. If you look into our cash conversion ratio is very, very good.
Ashish Kejriwal
Okay, so that’s great. Actually it’s more of a working capital financing and if we are effectively doing it, nothing. So this is not a one off, it can sustain for longer.
Amit Dixit
Correct. Okay,
Ashish Kejriwal
Great. Second question is that in terms of cost of our cost of steel making in fourth quarter, what kind of cost increase we have witnessed? Because if I look at the price hike and EBITDA per ton, it’s almost half like steel EBITDA per ton increased by roughly around 2,600 per ton and price increase is something like 5,100. So what kind of price increase we have witnessed in fourth quarter which led to lower EBITDA per ton compared to the price hikes?
Brij Bhushan Agarwal
Not clear. Ashish, can you just repeat once again?
Ashish Kejriwal
So sir, if I’m comparing fourth quarter EBITDA per ton of steel versus third quarter, we are seeing that EBITDA per turn increased by roughly around 2600 whereas the price increase in the carbon steel is around 5100. So you know roughly around 2500 cost increase could be there. I was just trying to get a sense of where this cost increase we have witnessed.
Brij Bhushan Agarwal
We will not be very appropriate in answering your question but overall I can say because when you are into such a big ecosystem you have your booking, you have your pre advance booking for more than two months, three months in the system and there are some deliveries which has to happen. There must be a lot of old carryover of a lesser price which may be affecting an average outing. And maybe one of the reason, and there cannot be any other reason because whatever the market is, it is a very open price.
If they build up per ton, this will be the price which has gone up by some cost effect must be there because of cost is increasing because of the vessel freights and all your import prices, your limestone, everything is going up. So there must be some kind of a cost pressure also. So which maybe also have some kind of a substantial pressure. This
Deepak Agarwal
Is, this is basically the restatement of import. The, the fluctuation loss, the dollar weakness, rupee weakness that will be the impact on this cost side also.
Ashish Kejriwal
Is it possible to quantify that sir?
Deepak Agarwal
That we can share you. Okay, I can talk
Ashish Kejriwal
To you later on sir on this one.
Brij Bhushan Agarwal
Yeah,
Deepak Agarwal
Yeah.
Ashish Kejriwal
Okay. That’s great. And all the best for your future plans. That’s really amazing to see that. Thank you so much. Thank
Deepak Agarwal
You.
Operator
Thank you. The next question is from Satya Reap Jan from Ambit Capital. Please go ahead.
Unidentified Participant
Hi. Thank you. So first just a follow up to Amit’s question earlier. What you put together different moving parts in terms of Capex but what exactly can you guide to what kind of Capex can we look at in FY27 specifically?
Deepak Agarwal
Yeah, yeah, yeah, yeah. As far as commissioning of Capex in this financial year as a our share is already shared. The.5 million ton of expansion. No, no, they are talking
Brij Bhushan Agarwal
About the value Capex not the how much money we are not the capitalization.
Unidentified Participant
Yeah.
Deepak Agarwal
Now as far as the total capex is required to be incurred is around 10,000 crores of rupees. And this financial year we will be incurring around 2,900 crore from this financial year and 3,000 crore in the next financial year. And balance will be the the next two financial year.
Unidentified Participant
Okay, thank you on that sir. Just generally wanted to understand the thought process. Last few years the intent was to remain net cash. As depending on different moving parts for earnings there may be a requirement to take on short term debt. As you mentioned is the company now more comfortable with debt with this size? What’s the thought process on capital structure as you look at all these capex for this one understand the thought process
Brij Bhushan Agarwal
Very comfortable. We had been very very mature in last 25 years. All these things we had been handling very prudent. So all these capex what we plan is seeing our cash flow, the net cash because you know we don’t have any kind of a major debt. There’s no interest. So whatever net catch if you see last year on this we must have made close to around 80, 1900 crores net cash in the company. Because there’s hardly any interest cost and I think it’s more than 2000 crore this year also we expect that we will have a substantial cash.
And when you do a capex, you know you have long term plans, you know when you buy machines and all you get lot of time credits and all. So I think we are very comfortable as of now. Nothing to worry.
Unidentified Participant
Sorry.
Deepak Agarwal
Hello. Hello. In addition to this also I would like to add one more thing. As far as debt is concerned in our system we have a debt policy in the system is also there. Our debt will not cross at any point.05x to the total equity in any point of circumstances. So we will follow this debt policy. And if you look into our financials, our cash generation over a period of time we come up around 2000-2500 crore. And we can easily meet whatever be our capex program in next three to four years.
Unidentified Participant
Okay, thank you for that. Secondly, on West Bengal, so you mentioned there is optimism around improvement in infrastructure Just on your Jamuria location after the HSM, the new CapEx that you build. What kind of optionality is there just in terms of land package between Jamuria, Sambalpur? My understanding was that after this capex the land availability might be somewhat limited. But correct me if I’m wrong and what are the plans for expansion in West Bengal to capitalize in case you’re looking at that optimism in activity.
Brij Bhushan Agarwal
Satyajit. For next three, four years we don’t have to worry. And we are also in the process of procuring more land adjoining our plant. Because I don’t see any problem as on date and for next we have a clear window for next three, four years. Like there is no issue of any land and some sparsals and all. We are already in the process of acquiring and looks everything good. Yeah.
Unidentified Participant
Okay. Thank you so much.
Operator
Thank you. The next question is from Mr. Vikash Singh from ICICI Securities. Please go ahead.
Vikash Singh
Hi sir. Good afternoon and thank you for the opportunity. Sir, my one question only on the stainless steel apex. Given the current circumstances when the government duty protection is more towards the steel expanding into the stainless steel where usually the quality control order had not been there. Just wanted to understand why we have been, you know putting still emphasis on the stainless steel could have been delayed. Or the roe or ROC of stainless steel versus steel. How is it sitting? Right now
Brij Bhushan Agarwal
The carbon steel prices is close to $800. You know if you talk and the stainless steel prices are close to on an average 120, $130. I mean to say, you know, $1200, $1300. So in our case more than 80% raw material for making stainless steel downstream. So we are doing a carbon steel development also we are putting up an HR coil plant and we are also developing in the stainless steel market. Because the EBITDA in this stainless steel is better than the carbon steel. Because it is more niche, it is more expensive.
And also we have an advantage that we are doing a forward integration. And it also help us to for a proper capital utilization. Because the working capital load is very less. For a general people if they want to stainless steel they have to buy scrap. They have to put an inventory of three, four months. A lot of issues are there. But in our case we have an advantage. And we are also developing into a new metal where we see that in the time to come we should be able to position more stronger. We started with a small acquisition in the stainless steel.
Right now we are doing a run rate of around 130, 140 crores every month in last two, two and a half year. Now we are thinking of doing a run rate of close to 300, 300 crores in next three years every month. So the business is different but we have lot of advantage. We have our own power, we have our own alloy. And what we are doing, we are just doing a value addition. For me it is a New business also and we are doing a value addition in our existing business also. Strategically we are very different as a standalone industry or our integration.
If you see in the stainless steel.
Vikash Singh
So in terms of roces or return ratios at current price point, how both steel and stainless steel is stacked up for you?
Brij Bhushan Agarwal
Very difficult question. At what hour you are asking me this question? The hour changes. But anyway this is always a better. It is always a better I would say in comparison with the capital it will have an edge of around more than 20, 30% over the carbon steel always because it is a limited edition. The challenges are more. And it is a niche market. It is not a commodity product. It is a niche product.
Vikash Singh
Notice that’s all from my side and all the best of.
Operator
Thank you sir. The next question is from Mr. Rajesh Mazumdar from 361 Capital. Please go ahead.
Rajesh Majumdar
So just one question from my side. What is the status of the ED case on the, on the coal which you mentioned in the note because this is dated 15th April so we are in almost mid May now. Has it been resolved or is there any other thing on this matter? And now
Brij Bhushan Agarwal
There is absolutely not to worry because there’s nothing. They have given some letter, we are replying and it’s nothing to be worried of because there’s nothing which is, you know, of an evidence or you know something on the statement. They have given a notice and that statement will not stand because it has been applied to almost major steel industry in the city. We are one of them being one of the popular steel industry. So we are on the highlight but we don’t have to worry.
Rajesh Majumdar
And just to follow up with the political change now established, this will be.
Brij Bhushan Agarwal
I can’t answer all these, I. I can’t answer all these.
Rajesh Majumdar
Your
Brij Bhushan Agarwal
Question, you should meet me separately and take the answers. It’s not good.
Operator
Thank you. The next question is from Tanoj Nangalia from SKP Securities Ltd. Please go ahead.
Unidentified Participant
Good evening everyone. Congratulations to the management on a strong set of numbers for FY26. So my first question is on the stainless side. So nickel is up nearly 20% since December on the international supply cuts. So do we see, do we see any challenges in the nickel sourcing going forward? And is the cost increase something we can fully pass through to the customers?
Brij Bhushan Agarwal
Nickel is always going to be a challenge. Nickel in the stainless steel always going to be a challenge. It is not going to be a easy affair. But in our portfolio of our product, more than 70% or close to 75% our stainless is majorly without nickel. You know, we are focusing on the grade which has a minimalistic or 20, 25% to cater the complete basket. We have to have a nickel. We have to import the nickel from Indonesia also. We import this. We have to import this crap which has a high content of nickel.
But yes, it is generally, you know, in most of the time, you know, it is pass on. So whatever the nickel price goes up, the stainless steel price goes up. But there’s always a carryover of your inventory, plus and minus which is a regular transitional process which everybody has to abide with.
Unidentified Participant
Okay, so got that. And so next question is on the aluminium business side. So is there any decrease in the export order booking due to the ongoing geopolitical conflict and are we able to service the ordersold?
Brij Bhushan Agarwal
We are oversold. We are not able to supply to the international market. That’s what.
Unidentified Participant
Yeah, okay. And also with the rupee depreciating, do we see there is a margin tailwind given in the aluminium side, the export business.
Brij Bhushan Agarwal
These are all temporary. Everybody knows, you know, India is a dominating market. They have a special supplies and all. So whatever is where it is all pass on, plus or minus. Maybe periodically, one or two months. It matters. But the consumer, they take up the price, they take up the hit. Because once people have to use aluminium, there’s no substitute. It is like general other industries.
Unidentified Participant
Okay, thank you so much, sir.
Operator
Thank you. The next question is from Harish Abramanian from unifi Capital Private Limited. Please go ahead. Mr. Arish.
Ruchit Agrawal
Hi, good evening. Thanks for the opportunity. Just one question from my side on the Central Pollution Control Board. You know what came out in terms of the observations. So can you explain what was the non compliance?
Brij Bhushan Agarwal
There was some kind of. There was some kind of, you know, the error which was identified by the board inspection which was resumed in four, five days. And we have taken all the action and in the time to come we will take take it more seriously and see how best we can deliver. Yeah.
Ruchit Agrawal
So within this three months time period do you believe you will be able to fully address and compliance and comply with observations given?
Brij Bhushan Agarwal
Yeah, yeah, not a problem. Not bad.
Ruchit Agrawal
All right, sir. Yeah, thanks.
Operator
Thank you. The next question is from PR Jan from Nishai. Please go ahead.
Amit Dixit
So my question is being covered. So thanks for the opportunity, but it has been already covered.
Operator
Thank you. Thank
Brij Bhushan Agarwal
You. I have my flight to catch. Can we.
Operator
Thank you, sir.
Brij Bhushan Agarwal
This was the last question, sir.
Operator
Thank you. As there are no further questions from the participants, I now hand the conference over to management for closing comments. Thank you. On behalf of Sham Metallics and Energy Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.