Thank you. Good evening, ladies and gentlemen.

I, Pankaj Harlalka, Head of Investor Relations at Shyam Metalics, 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 NSE websites.

To discuss the results today, I am joined by Mr. Brij Bhushan Agarwal, Chairman and Managing Director; Mr.

Deepak Agarwal, Director Finance and CFO; and Mr. Sumit Khaitan from MUFG InTime, our investor relations partner.

Now, I would like to invite Brij Bhushan-ji to provide his perspective on the performance of the fourth quarter and FY26. Thank you, and over to you, sir.

Thank you, Pankaj. Good afternoon, everyone.

Welcome to Shyam Metalics and Energy Q4 FY26 earnings 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 remained 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 key infra projects, such as road, railways, power.

Now coming to Shyam Metalics, 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 CRM complex at Jamuria and the successful commissioning of the blast furnace at our Kharagpur plant.

For FY26, our sales volume stood at 4.94 million tonnes, reflecting a strong year-on-year growth of 26%. In Q4 '26, sales volume registered a growth of 22% over the same 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 '26, revenue rose by 27% year-on-year, while profitability grew about 42%.

This performance underplanned 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 through the commissioning of downstream heat treatment process.

These 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 with the transition towards a higher value-added product with better margins. The proposed capex will be primarily funded through internal accruals, reflecting our disciplined and capital-efficient approach towards value expansion.

This investment remained fully aligned with our broader 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 continue expansion across various metal, in specialty alloy, stainless steel, aluminium, railway infrastructure, value-added products, 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 values for our shareholders. We sincerely thank you for your continued support, trust, 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.

Thank you, sir. Good afternoon, everyone.

Thank you for joining us today for Shyam Metalics and Energy Limited's earnings call for the fourth quarter and full year ended 31st March 2026. I am Deepak Agarwal, Chief Financial Officer of the company, and I am delighted to present our financial results on behalf of the Board of Directors and the entire Shyam Metalics family.

I will take you through our key financial highlights for the fourth quarter and the full year, that is 25-26, followed by a discussions on our capital allocation strategy, balance sheet strength, and the strategic investments we are making for our next phase of growth. Our Chairman and Managing Director, Shri Brij Bhushan Agarwal, 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 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, is a growth of 33% on year-on-year basis, and is a growth of 40% on 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-year basis, and 49% on a quarter-on-quarter basis.

As you all aware that 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, ₹312 crore, 14% growth on year-on-year basis, and 58% growth on quarter-on-quarter basis. The PAT margin is 6% against 5.3% in quarter four of the last financial year.

What makes these numbers 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 25-26. Therefore, the annual turnover for the whole year is ₹18,552 crore, that is 22% growth on year-on-year 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 financial year '25, residing amidst slighting input cost pressure.

Full-year operating margin is ₹2,333 crore, that is 25% on year-on-year basis. The full-year operating EBITDA margin is 12.6% against 12.3% in the last financial year.

The full-year PAT is ₹1,061 crore, 17% growth on year-on-year basis. The full-year basic EPS is ₹38.1 per share against the ₹32.7 per share last financial year.

Crossing the ₹18,000 crore of revenue threshold and delivering over ₹1,000 crore of PAT for the full financial year underscored the scale and earning power that Shyam Metalics has built over recent years. This is a business firing on all cylinders.

Now, we will discuss about the volume growth and per tonne 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-year basis and quarter four '26, validity both our capacity expansion investments and our strengthened market positioning. Let me highlight some of the most significant volume achieved 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-year basis, that is 2,03,499 tonnes, reflecting the strongest domestic demand and our expanded product capabilities.

Iron pellet volume grew by 40% on year-on-year basis, that is 2,78,341 tonnes, driven by operational efficiency and improved realizations. The stainless steel volume grew by 13% year-on-year basis to 27,287 tonnes, continuing our premiumization journey.

On per tonne realizations, we saw healthy improvement across most product lines. Aluminium realization improved by 16% year-on-year basis, that is ₹4,07,461 per tonne.

Stainless steel realizations improved nearly 17% year-on-year basis. CR coil, CR sheet realizations rose approximately 15% on year-on-year basis, that is ₹78,513 per tonne.

These improvements reflect both firm underlying demand and our deliberate push towards value-added and specialty product with a superior margin profile. Let me now walk through some key observations on our consolidated profit and loss account.

First, revenue mix. Our steel product segments 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 CR sheet, stainless, aluminium is deliberately strategic shift, one that is enhancing our blended margin profile.

As far as cash generation, 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 25-26 is approximately ₹2,000 crore on a consolidated basis, an improvement over the prior year, reflecting the strong earning, working capital discipline.

This cash generation capacity is what gives us the confidence to commit our next phase of capital investment. The Shyam Metalics and Energy Limited continued to maintain a strong balance sheet and healthy return profile in the financial year 25-26, despite being a peak capex cycle.

The company reported a ROCE 16% and ROE is 13% in the financial year 25-26, reflecting a disciplined capital allocation, operational efficiency, prudent leverage management, that resulted into reflection of our working capital days from 22 days to 9 days. Our financial architecture is designed to support growth without compromising financial resilience.

We run a fundamental conservative balance sheet, low leverage, strong operating cash flow, and adequate liquidity buffer. Now, we moving to the dividends.

As you all aware that the Board of Directors has recommended a final dividend of ₹2.7 per equity share, representing 27% of the face value of ₹10 each for the financial year 25-26. This recommendation is subject to the approval of shareholder at the ensuing 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 this strike the right balance between capital return and value creation.

Now, moving to the strategic capex. Now, let me speak about perhaps the most exciting announcement in our results.

The board has approved a fresh capex is ₹2,700 crore for our next phase of growth. This investment comprising two major projects.

One is the long specialty wire bar mill. We will setting up a long specialty wire mill with a furnace at Kharagpur with a capacity of 8 lakh tonnes at an estimated capital outlay ₹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 expanding our stainless steel capacity to .6 million tonnes at 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 ₹1,800 crore, with a targeting commissioning date is March 2029.

This project will be funded majorly from our internal accrual and 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 ₹2,000 crore in operating cash flow in the financial year 25-26 alone, we are well positioning to fund this capex program while maintaining balance sheet discipline. The evolving democratic and economic environment 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 Metalics 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.

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 volume growth. 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. See,

first of all, as in volume growth, we are expecting half a million tonne 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 heat 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'd see a growth in the billet as well. There will be a partial growth in our final product like structural, TMT, with the upgradation and some more feeding of raw material into the steel segment.

In CRM complex, since we are going to commission the Galvalume line within this month-end or maybe early next month, we'll see the there will be a substantial volume growth in the flat product in the Galvalume 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. 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.

We'll see this year the plant will get commissioned and slowly, slowly it will be stabilized. There will be a lot of action this year.

Great, sir. Wonderful.

That's very well explained. The second question I had was on actually aluminium.

Now we have seen aluminium prices remaining very robust worldwide. For us, since we are actually converters, how do you see margins?

Is it like a pass-through for us, or we get some incrementally higher margins on the elevated LME aluminium price?

I think we should see as a pass-through. 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, we'll see a lot of value coming up.

Because now we are buying the foil stock. Once we make our own foil stock, we'll see the margin also increasing.

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 with the prices of the aluminium is concerned, it is going to be almost pass-through.

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 can.

We have declared a capex, like in Ramsarup, 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 tonne, to be more prescribed, 800,000 tonnes.

The plant is expected to be commissioned by end of next year. This will have a substantial capex setting up the plant.

Since it is now a brownfield project, and we will be very efficiency, will be able to do this capex. Like we have announced ₹2,700 crores capex in the stainless steel downstream activity as well, where we are seeing, comprising of Ramsarup and stainless steel and all.

All this capex is going to be spread in next to 2.5 years. Apart from that, we're setting up a flat product HR plant.

Generally to set up a 2 million tonne of HR plant, it generally costs close to ₹16,000 to ₹18,000 crores. In our case, only from the HR side, we are almost 1/3 capex what we have declared because we have all the brownfield facilities, and we have all forward and backward integration is already integrated.

There's nothing to worry. We have a substantial treasury.

We are doing a good EBITDA. Year-wise-year, we are seeing that there has been a substantial increase on the numbers and all.

As on date, it's looking very comfortable. In case we find there is some kind of a shortfall and all, we are almost a debt-free company.

Buying some kind of a short-term debt is not going to be an issue. As on date, I don't see that will be a problem till we take some more project ahead.

Thank you.

Great. Meaning in addition to that—

I think he was having one more question. Please Amit, please carry on.

Sir,

the one more question I had was on stainless steel. Now, if I look at the EBITDA per tonne 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 per tonne actually grew quarter-on-quarter.

Now, in our case, we have seen a slight contraction in EBITDA per tonne. Just wanted to understand whether it is EBITDA per tonne 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.

They are into the flat product; we are into a long product. This was a very old plant, which was taken through NCLT two years before.

Here we are almost making all the stainless steel from the scrap. Right now, our new facility of stainless steel, which is coming up in our Odisha plant, we have our complete integration, 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.

We will have a blend of long product and flat product. Yes, in the time to come with our power cost of less than ₹2, where we are in Indore, we are paying more than ₹6 or ₹7, we are buying scrap, it's not that big mega-size project and all, definitely it will have a very positive, impactful differences when we commission our Odisha stainless steel plant.

Okay. Great, sir.

Thank you, and all the best.

Thank you.

Hello. Hi, sir.

Congratulations on a very good set of numbers to both Bhushan-ji and Deepak. Sir, a bunch of questions.

New capex, which you have announced on the SS side, both, what is the end industry are we targeting in both the cases?

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 there is some portion is on the decorative side of aluminium, stainless steel, what is used in the elevators and all. All these are the decorative part.

Apart from that, some special category will be catered to the utensils market also, and some in the export defence side also.

Got it, sir. Then there two question arises here.

One, what kind of profitability or return ratios on those capex you're seeing? Seems like these are value-added product.

Second, these will be a little different from our current channel sales. Is that a right assumption?

How are you plan to do the sales here, or how do you want to target the customer set?

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.

We'll be 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. Apart from that, it's a very open market.

India is growing, and there's a good demand. We are seeing that more and more decorative, and being one of a very cheap product, it's not very expensive on the decorative segment.

We are seeing in interiors and everywhere around, the stainless steel penetration is increasing. We'll be able to build up more and more penetration in this category.

Got it, sir. Any sense on what kind of EBITDA per tonne or return ratios you're looking for these kind of investments?

This is a very interesting business. I would say generally it wander from around ₹15,000 to ₹20,000 a tonne.

Our overall calculation is in the range of 12,000 to 15,000. 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 18,000.

It's going to be interesting product, and apart from that, 80% of the ingredient you are using from your existing product, the steel, the specialty alloy, ferroalloy, power is yours, it's a brownfield. It's nothing where you are building up a raw material inventory within your capital cycle.

The yield of the capital is going to be definitely better. It's also going to create more sustainability with this kind of a business if we enter.

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

business. All right, sir.

Got it. Fair enough, sir.

Bhushan-ji, one more thing. In this quarter, we can see 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 there's a softness in the realization. Do you think there is still room for this realization to move up from here for most of your products?

You think that they will be stable, or you see that there's a risk given the global scenario and all?

I think there is no chance to go above from this level because now we are entering into a monsoon session. Apart from that, I think the market is pretty good.

If you see, we have the EBITDA is close to 14% on the overall. I think it's a very decent.

Might be 1% here or there doesn't matter. For us, if you really ask me, market is in nobody's control.

We have more focus on our efficiency and cost. To be more optimistic and realistic, I would say, the business will remain stronger because today still we are tensed by the geopolitical issue.

There's a lot of restrictions on the logistic side, export market. There's a lot of spending is going to come globally.

Earlier, none of the countries used to spend 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.

The metal company in India will grow domestically with the internal demand, and also will have an edge and the opportunity to participate internationally also in a very big way.

Fair enough, sir. Definitely.

I think there's a change in political atmosphere in West Bengal as well. I hope that that also favors us.

One more bit, sir. If I look at the quarter EBITDA, it's very good.

If I annualize it, we're crossing more than 2,800 crores. How should we think about it?

One leg is this, where we have already achieved this number. Then there are incremental things which are happening.

For example, when I was looking at your presentation, the second phase of CRM has only started in April. I think it was not a contributor, if my assumption is right, it was not a contributor in the fourth quarter.

The benefit should come in FY27. Then again, as per your presentation, you should be finishing your phase 2 of aluminium right within the FY27.

Some benefit of that should come. Then if I put all this thing together, can we look or expect a EBITDA of more than 3,000 crore for FY27?

Shaleen, when I told you last time, I remember, I was always speaking close to 1,800 to 2,000 crore EBITDA for this year. Fortunately, we landed into 2,425, including other income.

On this realistic term, the operation was close to 2,300 plus, correct? I would be little bit more conservative.

I don't want to say because for us, I've been always very very conservative and prudent on my say, on my project and on my targets and all.

Sir, what wrong in my assumption here, if I simply say that? I understand you'll be conservative.

No, you are not wrong, but maybe nearby. Maybe plus or maybe 5% here and there I expect.

You're not wrong, you're right.

Any sense if we can get from you or Deepak-ji, if not now, even later is helpful, what kind of a EBITDA contribution you're expecting from this CRM and aluminium plant in FY27? That can help us have some sort of a contribution from them.

Is it possible to share details now?

Roughly, I think the CRM EBITDA is going to be close to ₹10,000 to ₹11,000 per tonne this year from the And the aluminium EBITDA, I think, should remain between ₹35,000 to ₹40,000

because

this year, we are Please. Here

the timeline of aluminium, because it's still in the commissioning, can we expect it to happen in first half of FY27?

First half, we will be starting commissioning and all. We'll start seeing the effect in the second half more better because all these high-tech plant, it takes time.

It's a greenfield project what the new foil plant and all has come, this will take time. Yes, definitely it will have more and more positive impact time-to-time with the quarter-to-quarter.

Just last bit, and then I'll join back the queue. On the battery foil, our product has qualified with the customers?

Yeah. We are all done.

Not sure if you would like to, but would you like to share the name of the customers who have qualified?

We have done this, there's a nondisclosure agreement,

but

still, we have been qualified long back. Once we see a battery line coming up middle of this year and all, we will be penetrating in the battery foil.

There will be more than one customer?

Sorry?

There will be more than one customer?

Two to three customers are there.

Two to three customers, okay. Got it.

Shalin-ji, in addition to this, as far as future guidance for EBITDA, the sir is always be in a very, very conservative. If you'll see in our financials, with the commissioning of aluminium, with the commissioning of CRM, with the commissioning of .5 million tonne of sponge iron, and with the commissioning of blast furnace as well in the last financial year, the full-year impact will come up in this financial year.

Definitely, we will be achieve whatever we have achieved in the last financial year. Sir will always say on a very conservative side, because we always believe only in the commit less, delivering more, following only on this policy.

Fair enough, Deepak-ji. I can—

I think this year, we will be very comfortable with our growth close to 30% over this year. What the last year we have done, very comfortable.

Yeah. Yeah.

If all your project execute and the EBITDA realization doesn't really hurt, then I don't think so any reason that why we should not have a 30% kind of a profit growth, operating profit growth.

Shyam Metalics will always believe on the volume growth. Shyam Metalics will never depend on the realization side.

If you look into our last four quarters' financials, you will find we will be always giving the sustainable EBITDA, sustainable volume growth is there over a period of time.

Fair enough, sir. Good.

Good show, sir. Good show.

Thank you so much. I'll join back the queue.

Thank you.

Thank you.

Hi. Thanks for the opportunity, and sir, many congratulations again for good set of numbers, and delighted to hear about your mid-term growth plans.

Thank you so much for that.

Thank you, Ashish. I hope we are keeping you happy with all your questions every time and deliverable?

Yes, sir. Far, it's going good.

Sir, 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.

Is there any change in the strategy? I understand that maybe we may have booked some higher iron ore or coal in order to take advantage of lower prices earlier, which could have increased our inventory days.

Is it so? What about the payable days, why it has increased?

Any change in the business strategy on that front? That's my first question.

No, no. I can take you these questions.

As far as sharply increase in the inventory, only because of, if you look into the last year financials, 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, coking coals and something.

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.

We have taken a higher than what is warranted as of now, and it will be liquidated in first or second quarter, am I right in that? Correct,

correct.

Okay. What about payable days, sir?

Payable days is approximately 130 days, 130

days. It has increased significantly from our normal scenario.

Is this a one-off type, or?

No, this is not a one-off. Our credential is there, whatever we are procuring, most of the raw material we are procuring on credit basis.

If you look into our cash conversion ratio is very, very good.

That's great, actually. It's more of a working capital financing, and if they are effectively doing it, this is not a one-off.

It can sustain for longer.

Correct, correct.

Great. Second question is, sir, in terms of cost of steelmaking in fourth quarter, what kind of cost increase we have witnessed?

Because if I look at the price hike and EBITDA per tonne, it's almost half. Steel EBITDA per tonne increased by roughly around ₹2,600 per tonne, and price increase is something like ₹5,100.

What kind of price increase we have witnessed in fourth quarter which led to lower EBITDA per tonne compared to the price hikes?

I'm not clear, Ashish. Can you just repeat once again?

Sir, if I'm comparing fourth quarter EBITDA per tonne of steel versus third quarter, we are seeing that EBITDA per tonne increased by roughly around ₹2,600, whereas the price increase in the carbon steel is around ₹5,100. Roughly around ₹2,500 cost increase could be there.

I was just trying to get a sense of where this cost increase we have witnessed, whether it is

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 bookings. You have your pre-advance booking for more than two months, three months in the system.

There are some deliveries which has to happen. They must be a lot of old carryover of a lesser price, which may be affecting an average out.

Maybe one of the reason. There cannot be any other reason because whatever the market is, it is a very open price.

If the EBITDA per tonne, this will be the price which has gone up, but 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. There must be some kind of a cost pressure also, which may be also have some kind of a substantial pressure.

No, this is this is basically the restatement of import, the the fluctuation loss, the dollar weak rupee weakness, that will be the impact on this cost side also.

Is it possible to quantify that, sir?

That we can share you.

I can talk to you later on, sir, on this one.

Yeah.

That's great. All the best, sir, for your future plans.

That's really amazing to see that. Thank you so much.

Thank you.

Hi, thank you. First, just a follow-up to Amit's question earlier.

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, will you answer?

Yeah. No, no.

Yeah. As far as commissioning of capex in this financial year, as our sir is already shared, the .5 million tonne of sponge iron, we will be commissioning—

No, no. They are talking about the value capex, not how much money we are capitalizing.

Not the capitalization. Yeah.

No,

as far as the total capex is required to be incurred around 10,000 crores of rupees. 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 next two financial year.

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 of earnings, there may be 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?

Just wanted to understand the thought process.

No, very comfortable. We had been very, very mature in last 25 years.

All these things we had been handling very prudent. All these capex, what we plan is seeing our cash flow, the net cash, because we don't have any kind of a major debt, there's no interest.

Whatever net cash if you see, last year on this, we must have made close to around 1,800, 1,900 crores net cash in the company, because there's hardly any interest cost and I think it's more than 2,000 crores. This year also, we expect that we will have a substantial cash.

When you do a capex, you have long-term plans, when you buy machines and all, you get a lot of time credits and all. I think we are very comfortable, as of now, nothing to worry.

Yeah.

Okay. And In addition to that—

Sorry.

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, that our debt will not cross at any point .5x to the total equity in any point of circumstances.

We will follow this debt policy, and if you look into our financials, our cash generation over a period of time come up around 2,000 to 2,500 crore, and we can easily meet whatever be our capex program in next three to four years.

Thank you for that. Sir, secondly, on West Bengal, you mentioned there is optimism around improvement in infrastructure and all.

Just on your Jamuria location, after the HSM, the new capex that you build, what kind of opportunity 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.

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 and activity there?

Satyadeep, for next three, four years, we don't have to worry. We are also in the process of procuring more land adjoining our plant, because I don't see any problem as on date.

We have a clear window for next three, four years, there is no issue of any land. Some parcels and all, we are already in the process of acquiring.

Looks everything good, yeah.

Okay. Thank you so much.

Hi, sir. Good afternoon, and thank you for the opportunity.

Sir, my one question only on the stainless steel capex. Given the current circumstances when the government duty protection is more towards the steel, expanding into the stainless steel where usually the quality control orders had not been there, just wanted to understand why we have been 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? See,

the carbon steel prices is close to $800, if you talk, and the stainless steel prices are close to on an average $120, $130. To say, $1,200, $1,300.

In our case, more than 80% raw material for making stainless steel is downstream. 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 the stainless steel is better than the carbon steel, because it is more niche, it is more expensive.

Also, we have an advantage that we are doing a forward integration, and it also help us 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, and a lot of issues are there.

In our case, we have an advantage. 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 from 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. The business is different.

We have a 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 stand-alone industry or our integration, if you see, in the stainless steel industry.

In terms of ROC or return ratios, at current price point, how both steel and stainless steel stacked up for you?

Very difficult question. At what hour you are asking me this question, the hour changes.

Anyway, 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.

Noted, sir. That's all from my side, and all the best for Thank you.

Sir, just one question from my side. What is the status of the ED case on the coal, which is mentioned in the note, because this is dated 15th April, we are in almost mid-May now.

Has it been resolved, or is there any other thing on this matter? Is the notice Yeah.

There is absolutely not to worry because there's nothing. They have given some letter, we are replying.

It's nothing to be worried of because there's nothing which is of an evidence, or it's something on the statement they have given a notice. That statement will not stand because that has been applied to almost major steel industry in the city.

We are one of them. Being one of the popular steel industry, we are on the highlight.

We don't have to worry.

Just to follow up to the political change now established, this will be

a I can't answer all these. Your question, should meet me separately and take the answers.

It's not good, huh?

Sure, sir.

Yeah.

Good evening, everyone. Congratulations to the management on a strong set of numbers for FY26.

My first question is on the stainless side. Nickel is up nearly 20% since December on the international supply cuts.

Do we see any challenges in the nickel sourcing going forward? Is the cost increase something we can fully pass through to the customers?

See, 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. In our portfolio of our product, more than 70% or close to 75% our stainless is majorly without nickel.

We are focusing on the grade which has a minimum streak or no nickel. 20%, 25% to cater the complete basket, we have to have a nickel.

We have to import the nickel from Indonesia. Also, we have to import the scrap, which has a high content of nickel.

Yes, it is generally, in most of the time, it is pass-on. Whatever the nickel price goes up, the stainless steel price goes up.

There is always a carryover of your inventory plus and minus, which is a regular transitional process, which everybody has to abide with.

Sir. Got that.

Sir, next question is on the aluminium business side. Is there any decrease in the export order booking due to ongoing geopolitical conflict?

Are we able to service the orders?

We are oversold. We are not able to supply to the international market, touch wood.

Yeah.

Also with the rupee depreciating, do we see there is a margin tailwind given in the aluminium side, the export business?

These are all temporary pass-on ho hi jata hai na? Matlab, everybody knows, India is a dominating market, they have a special supplies and all, whatever is there, 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, yeah.

Okay. Thank you so much, sir.

Hi. Good evening.

Thanks for the opportunity. Just one question from my side on the Central Pollution Control Board, what came out in terms of the observations.

Can you explain what's the noncompliance?

No, no. There was the error which was identified by the board inspection, which was resumed in four, five days, and we have taken all the action.

In the time to come, we will take it more seriously and see how best we can deliver. Yeah.

Within this three months time period, do you believe you will be able to fully address and comply with all the observations that were given? Yeah.

Yeah. Not a problem, not at all.

All right, sir. Thanks.

Sir, my question is being covered, thanks for the opportunity, but it has been already covered.

Thank you. I have my flight to catch.

Can we

Yes,

Yeah. Okay.