Strong Mar-Q and Healthy Growth Outlook

Research evidence excerpt

Strong Mar-Q and Healthy Growth Outlook

3 stainless steel player in India.

Exhibit 1 - Multifold increase in stainless and

Healthy volume growth outlook: SHYAMMET reiterated that ongoing capacity expansions carbon steel capacity

SHYAMMET:remain on schedule. The company has recently expanded its cold rolling mill capacity by 60% 5.0

Capacity (mt) 4.5

to 400kt in Apr-26, is expanding its sponge iron capacity by 35% to 4.1mtpa by FY28E and 4.03.5

raising its pig iron capacity by 25% to 1.5mtpa by FY28E. As these capacities ramp up, we 3.02.5

expect SHYAMMET's steel equivalent volumes to grow at an 8% CAGR over FY26-29E. 2.01.5 4.4

1.0 2.0

0.5 0.12 0.85

Steel prices rising: India long steel price have risen 4% CYTD with spot prices 3% above 0.0 Current FY30E Current FY30E

Mar-Q average. Rising steel prices should support profitability in the carbon steel segment, .Source: CompanyStainlessdata,Steel Jefferies estimatesCarbon Steel

which formed 46% of EBITDA in FY26. The product mix is also set to strengthen as the

share of stainless steel and cold-rolled steel rises, which should aid margin expansion as well. Exhibit 2 - 14% EPS CAGR over FY26-29E

SHYAMMET's blended EBITDA/t rose from Rs4.5K/t in 1HFY26 to Rs4.7K/t in 2HFY26; we 18 SHYAMMET: CAGRs (%, FY26-29E)16

expect Rs4.9K/Rs5.4K/ Rs5.8K in FY27/FY28/FY29. 1614 14

12 11

Retain Buy: We raise our FY27-28E EPS estimates by 10-17% on higher volumes and margins. 86 8

We now expect EBITDA and EPS to increase at 14-16% CAGRs over FY26-29E. We see 42

Steel-equivalent EBITDA EPS Avg. ROESHYAMMET's balance sheet turning from Rs6.8bn net cash in FY26 to Rs8.4bn net debt by volumes

FY29E, though due to ongoing capex (still just 0.2x net debt/EBITDA). We retain Buy with an .Source: Company data, Jefferies estimates