Ladies and gentlemen, good day and welcome to Q1 FY 2026 Earnings Conference call of Shyam Metalics and Energy Limited, hosted by MUFG Intime. As a reminder, all participant lines will be in 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 touch-tone phone. I now hand the conference over to Mr. Pankaj Harlalka, Head IR from Shyam Metalics. Thank you, and over to you, sir.
Thank you. Good afternoon to everyone, and thanks for connecting with us on our first con call of this financial year. On behalf of Shyam Metalics, I am delighted to welcome you all to this call, particularly our shareholders and our industry analysts. Thank you for taking the time out on this call to discuss our latest results and performance. Our results and detailed investor presentation have been uploaded on the exchanges as well as our website. I hope everyone had a chance to go through it. To discuss our results, we have with us our Chairman and Managing Director, Mr. Brij Bhushan Agarwal, and our Director of Finance, Mr. Deepak Agarwal. They will take you through our results, and then we'll proceed to the Q&A session.
Before we proceed, a small disclaimer: this conference call may contain some forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. The actual results may differ materially. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. A detailed safe harbor statement is also given on page two of the company's investor presentation. Now, I would like to hand over the call to Bhushanji. Thank you, and over to you, sir.
Very, very good afternoon, everyone. Thank you for joining the call. FY 2025 has been a very vital year for our company, a period well-defined by strong operational achievement, resiliency, growth, and effective strategic execution. Despite a dynamic industry landscape, we remain focused on integration, diversification, and expanding our value-added portfolio. This approach enables us to deliver solid performance across all the business verticals. I'm pleased to share that we have delivered a robust and resilient performance this quarter. Your company revenue growth has been close to 22% year-on-year, while the operating EBITDA rose to an impressive 19%. Volume growth was particularly notable, with a 32% year-on-year increase. This result reflects our continued emphasis on operational efficiency, rigorous cost management, and balanced product mix, supported by growth contributions from value-added product.
Our blast furnace and color-coated facilities commissioned in FY 2025 have performed strongly this quarter, with operational stabilization achieved ahead of schedule. In Q1 FY 2026, the pig iron plant recorded a utilization rate of 104%, while color-coated units reached close to 70%, indicating a healthy ramp-up and positive momentum. This reflects not just operational excellence but also our ability to execute projects ahead of expectations, showcasing strong ramp-up capabilities and performance-driven culture. We believe our core strength lies in driving efficiencies, both vertical and horizontal integration. This strategy enhances profitability, broadens our customer base, and helps mitigate margin volatility. Our continued focus on backward integration is expected to further improve operational performance and increase the revenue share from the finished good. Our production capabilities remain strong, underscoring our commitment to operational excellence and ongoing investment in the most modern advanced technology.
Through upgradation, modernization, and process enhancement, we have expanded both our capacity and product quality and gone more and more value-added to enhance the profitability and the bottom line. The aluminum segment continues to demonstrate a very solid performance, and we are confident in expanding our presence in this space. By developing the niche product for special applications, we aim to drive growth in both volume and profitability in the coming quarters. At Shyam Metalics, we remain firmly committed to executing our growth and roadmap. As Q1 FY 2026, we have incurred up to INR 7,003 crores in the capital expenditure, representing 70% of our total planned CapEx. Of this, close to INR 4,900 crores has been capitalized. Our announced investments are progressing well, and we anticipate timely completion.
As stated during our call, most of our carbon steel CapEx is expected to become operational by FY 2026, with the stainless steel and aluminum projects on track for commissioning in the year FY 2027. These investments are fully aligned with our long-term vision, strategy, and focus on deeper integration and improved efficiency and sustainability. We expect them to be earning equitably with a contribution meaningful in the terms of revenue profitability from 27 to 28 onwards. In conclusion, we are proud of how our team continues to deliver in the challenging environment while staying focused on the long-term values and commitments. By consistently executing strategic projects and optimizing efficiency, we are well in position to maintain our annual CAGR of close to 15%. Thank you for your continued support and trust. We look forward to engaging with you in the upcoming quarter.
With this, I conclude my speech, and I would request our CFO and Director, Mr. Deepak Agarwal, to take us through the financial performance. Thank you so much. Deepak, up to you.
Thank you, sir. A very good afternoon to all the participants. I thank all of you for taking time out of this call to discuss the results for the first quarter of the current financial year ended 2026. I will be glad to share a quick review of the reported consolidated financials for the first quarter and the review for the financial year 2025-2026. I am elated to share that in spite of ongoing geopolitical crisis and the U.S. President Donald Trump-induced tariff uncertainty, which has negatively impacted the current market scenario, Shyam being the exceptional market player, as always, has not only sustained its existing momentum of growth, and the results reinforce our trust in our strong business model, which continues to generate healthy cash flow.
We expect, with a reasonably strong demand recovery on the back of recent policy announcements made by the government towards railways, roadways, civil aviation, gas pipelines, towards affordable housing, and the incremental budgetary allocations to this sector, is likely to drive the demand for both long steel as well as stainless steel. I would now like to draw your attention to the financials of the company on a consolidated basis. In the first quarter of the current financial year, on a consolidated basis, the company reported an operating revenue of INR 4,490 crores, a growth of 22.4% over quarter one of the last financial year. The sales mix constitutes a high percentage of volume from finished steel, which accounts for 76% of the total revenue. Over the past quarter, the price of products across steel has been subdued, except for aluminum foil.
The margins have remained at par on the back of reductions in raw material prices for our consumption. The company has been able to book an operating EBITDA of INR 580 crores, which has increased by 18.98% over quarter one of the last financial year, and operating EBITDA margin in quarter one of the current financial year was 13.12%. This margin, mainly increased over the previous quarter, is on the back of our performance of a newly introduced product, pig iron and color coated steel. Our profit after tax for the quarter stands at INR 291 crores, which has seen an increase of 5.3% year-on-year. The PAT margin in the quarter is 6.6%, which is quite sound considering the current market trend and peer comparison. At Shyam Metalics, we always follow disciplined capital allocation policy.
Under this policy, we remain invested 70% of our cash generated back into the business, retained 20% as a liquidity surplus, and returned 10% to our esteemed shareholders on account of dividends. Our ambitious CapEx plans have been laid out in the investor presentations, and we are well tracked to execute them as per the expected timeline. We have around INR 5,599 crores CapEx pending capitalization, out of which we have spent INR 2,114 crores. In this quarter, we spent INR 419 crores, and the remaining INR 3,485 crores shall be spent over the next two years from our internal accrual and from cash generated from our operation. As mentioned by our CMD, sir, earlier, the company has declared an interim dividend of INR 1.8 per share, amounting to an outgo of INR 52.24 crores, which is pursuant to our disciplined capital allocation policy.
We now have a consistent track record of declaring dividends since our listing in June 2021. We look forward to the optimizations as we progress on our growth journey, and we are confident of achieving robust performance and financial performance going ahead. Now, I conclude my portion of speech. Throw the floor open for the question-and-answer session. Thank you. Thank you to all investors.
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 touch-tone 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 Sachs. Please go ahead, sir.
Yeah, hi. Good evening, everyone, and congratulations for a good set of numbers. A couple of questions.
Sorry to interrupt, sir. Sorry to interrupt, sir. Sir, your voice is not audible. Can you please use a handset or you can be more louder?
No handset. Is it better now?
No, sir.
Yeah, it's a little audible. Yeah. Please carry on.
Okay. Great. So a couple of questions from my side. The first one is regarding a couple of two resolutions, fund-raising resolutions amounting to INR 7,500 crores. Now, the company's reasonably cash-rich, and our pending CapEx is hardly INR 3,500 crores. Just wanted to understand the genesis of these. Are these merely enabling resolutions at this point in time, or do you have certain targets in mind for spending this money?
As far as you - yeah, yeah. As far as the fund-raising resolutions, this is basically enabling resolutions. Earlier, we were enabling the resolutions of INR 3,600 crores, which was expired because the resolution is valid for one year. This time, because in this board meeting, we are also fixing our annual general meeting, and subject to the approval of the - we are just going to enable our resolution as far as fund-raising to the extent of INR 4,500 crores on account of various issues like QIP, preferential , and any type of issues. That's it.
So there is another INR 1,000 crores through debt, actually. So, I mean, and this amounts to INR 7,500 crores. So I wanted to understand that if we-
This is also an enabling. As you all are aware, Shyam Metalics is always in the CapEx mode. We have whatever we have announced, our CapEx of INR 10,000 crores. Out of this INR 10,000 crores, we have already incurred INR 7,000 crores, and the balance INR 3,000 crores will be incurred maybe in the next two years. We will. This definitely, the another round of CapEx plan is on the table, and our committee, our CapEx committee, is working in evaluating and going forward. As and when it requires, we are just enabling the resolutions as far as NCD or any type of debt instrument. If it is required, then we can be able to go ahead. Otherwise, it is just like an inaction.
No, sure. Thanks. Understood. The second question is essentially that I find a new product that is HR pup. Now, this product I'm seeing for the first time in our presentation also. So just wanted to understand whether it is an intermediate product that you would—that you are testing the market with, and later on, we would have some broadened commerciality of this, or is it something that we are trying to get into, let us say, ERW pipe segment or something? So I just wanted a little bit more color on this and about future plans with respect to this HR pup product?
Amit, right now, we just commissioned the CR plant. HR is just a byproduct. Presently, we don't have any such plan to go into a pipe business. These are the off-cut which generally generates when you buy the big HR coil. You have to maximize the value of the byproduct. This is just a byproduct, nothing on the primary side. Thanks.
Okay. Understood. Thank you so much, sir, and all the best.
Thank you.
Thank you. The next question is from the line of Shaleen Kumar from UBS Securities India. Please go ahead.
Yeah. Hi. Good evening, everyone. Am I audible? Can you see it?
Yes, yes. Very much audible. Yeah.
Yeah. Congratulations, Vishwan ji, congratulations, Deepak ji. Pretty good solid number in the environment. So just want to understand a few things here. So I believe a part of this strong performance is coming from our new units for pig iron and color-coated sheet. So is this CapEx benefit completely in the quarter, or there can be more to come in the coming quarter? I mean, were they completely utilized, the units, or there is still some scope to build in from existing capacity?
Presently, you can say there's not much more headroom on this unit, presently because I think more or less it is capitalized, and today, I'm very happy to say that we are operating the Jamuria facility at more than 120% rating presently, and this is something none of the companies in India is operating the capacity of the Jamuria at this capacity. Our fuel consumption is also very, very, very well in comparison with our peers. We have taken the best technologies, and we have done a lot of R&D in setting up this plant, and I'm pretty happy to see this, and in the time to come, yes, there will be a lot of other improvements, but it will take a little time because now we are in the monsoon time, and this is the first monsoon we'll be facing with our new setup.
So maybe in the next six months, the much more better picture, larger picture will be on the table. Yeah.
Yes. Great too. If I just ask a basic question, what's driving this high capacity, the high utilization, right? Are you able to produce at a lower cost, strong demand? What's driving this utilization?
If you see, generally, the blast furnace is operating at three-and-a-half rate. I will just give you an example. Today, we have set up a 600 cubic meter blast furnace. And for a 600 cubic meter blast furnace, the optimum capacity what is guaranteed generally is close to 2,100 tons. But constantly, we are producing 2,700 tons today, which is close to four-and-a-half rating. Generally, the designed capacity, the run rate is four-and-a-half in comparison with three-and-a-half. And we expect that we should be able to go to 3,000 tons or maybe a little less than 3,000 tons.
Since it is a monsoon time, we don't want to take a lot of new challenges because it's the first monsoon and a lot of generally the teething issues are always on the front of the moisture and other concerns are there. But we are pretty sure we'll be able to touch it to close to 2,900 tons.
Gotcha. And also, just want to understand the status of our captive power unit.
Sorry to interrupt, sir. Your voice is cracking.
Am I audible?
Yes, sir. You're audible now.
Sorry, sir. That's bad network area. Just want to understand the status of our new Captive Power Plant. What's the current position on that?
We have commissioned the first 90 megawatts of Odisha, and the second 90 megawatts of Bengal plant is under the final stage of commissioning. We expect that by end of August or early September, we should be able to commission that as well.
If you can help us, what kind of benefit will come on a quarterly or annually basis on both the units of operation? Just help us for estimate if you can.
Most of our power plants are based on the fuel is rejects and waste heat gases and all. Our cost of generation is close to INR 2-INR 2.50 a kWh. It is definitely going to increase and enhance the bottom line because the cost is going to be more competitive. Whatever some percentage of import we are taking from the grid, we will be able to reduce it. We expect that this will be also enhancing our bottom line and will help us to be more cost-effective.
Gotcha. One question, just last question, and then I can come back to you. I didn't get a chance to ask this question earlier also.
Sorry to interrupt, sir. I saw your voice is cracking.
Again, sir. Okay. I'll join back the queue then. It's up here.
Thank you. The next question is from the line of Priti Agarwal from SK Associates. Please go ahead.
Hello. So the stainless steel wire segment has entry barriers due to customer approval timelines. Have you cleared any approvals in Q1, and which export markets are being targeted? Also, you mentioned INR 7,000-INR 12,000 per ton EBITDA in iron division and even INR 30,000 per ton in select products. So what proportion of your output in FY 2026 is expected in these higher margin SKUs?
Stainless steel wire, we just commissioned the plant, and presently, we are operating at close to 30%-35%. We are overcoming all the challenges of the stability, and we also have started the export market, started exporting the material, so this year, we'll be stabilizing our market, and I expect that we should be able to get close to 10,000 tons of wire this year, which will be a very substantial growth in the terms of the new plant and new technology what we are adopting, and we expect that we'll be able to ramp up to close to 20,000 tons for next year, and approvals are a very general process. It's a generic thing. I think there's nothing to worry as such because whatever Shyam Metalics has done, we have done always world-class.
And all aspects of compliance in terms of machines and all the quality aspects have been taken good care of. Thank you.
Okay. Understood. And also, you mentioned evaluating new project post FY 2027. So are you actively considering entry into HRC, long products for construction, or anything beyond metals?
We are doing a lot of product on the construction. Our long product is more than two million ton capacity. So this has to grow up. We are increasing. We are revamping our existing plant. We are trying to see more better optimization in the terms of because by some kind of a modification, you find we can definitely enhance it to 10%-15% more. Apart from that, the new plants are also under the planning stage, which we are thinking in the next couple of years, we will be able to roll out that as well. So these are all continuous things day in, day out. If you see, every unit is having a volume growth year -on -year. So this will continue growing in the average CAGR of around 15%.
Understood, sir. Thank you so much, and all the best.
Thank you.
Thank you. The next question is from the line of Vikas Gupta from RJ Investments. Please go ahead.
Hello. Am I audible?
Yeah, yeah.
Yeah. So my first question is, on the stainless steel flat products project, when exactly do you expect to begin commercial production, and what's the expected volume in FY 2026? And for the aluminum foil and fin projects, what is the status of the Al stock planned battery foil line? Has any part of the 2.5 times capacity expansion already gone live?
Related to the aluminum plant, the construction is going on. And we have declared that by end of 2027, we will be commissioning the plant. So almost after a year or a little more than later, we'll be commissioning the aluminum plant. And even the stainless steel plant has been also projected end of 2027, which is as of now, it is on track. Maybe one or two months, it can go a little plus or minus.
Understood, sir. And my further question is, any update on the wire and bright bar divisions in the stainless steel segment that were to stabilize over three to six months? Has customer qualification started?
I just answered this question before. It's almost we've already started exporting and all, and other things are under progress. We expect that everything should stable in next three to six months.
Understood, sir. Understood. Thank you for taking my question. Thank you.
Thank you. Before we take the next question, we would like to remind participants to press one to press star and one to ask a question. The next question is from the line of Kunal Devendra Kothari from Nuvama Wealth Management. Please go ahead. Kunal, you are not audible. As there is no response from the current participant, we are moving towards the next participant. The next question is from the line of Kartikeya Pandey from B&K Securities. Please go ahead.
Hello. Hello. Am I audible?
Yeah, yeah.
Yeah. Thank you for the opportunity. So I had a few questions. So first was that, can we expect a similar kind of EBITDA run in the coming quarters as well? And what is the pricing outlook for the second quarter?
See, this is a monsoon time, and these three months are generally a challenging month, starting from July, August, September, but yes, it's not going to have a major impact because we are also focusing on more and more cost reductions. It's not going to have a very big impact, but yes, this is going to be a month where a little bit of pressure will be there this quarter on the pricing side.
Okay. And.
But I would also like to add one more thing as well as finding this is not only something you see in the management board, it will be always a management group. So whatever data we are generating or adding or more EBITDA from our getting out of debt.
Okay. And another question that I had for the fundraising proceeds. Can you estimate the utilization of the INR 7,500 crores? Will it be fully used for the CapEx plan?
I don't know. It is not a plan of utilization of this fundraising. We are just enjoying the resources that we have been able to assemble. As I said, if it requires, it definitely will be achieved, but I don't know there is no plan for any fundraising of this. It's just like a gambling.
Okay. Thank you. That's all.
Thank you. To the participants, you may press star and one to ask a question. The next question is from the line of Devesh Lakhotia from IKIGAI Asset Manager. Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. So a couple of questions. One is on the aluminum segment, the ADD also, I think, was approved in terms of foils in the past couple of months ago. So are we seeing any improvement over there? Because at least in terms of margins and volumes, it's not reflected as of now. And the second one is just wanted your thoughts in terms of the entry into wagons that we have announced with the INR 300 crore CapEx, just rationale and the opportunity seen there. So those.
See, definitely, there is a good spurt in the demand in the aluminum foil. And the margins are definitely improving, but people are carrying over with their own inventories on the sales side as well as on the buy side. Generally, all these things take some transition phase in the level of three, four months. We'll start seeing more and more better numbers in the time to come. And when we are talking from the wagon point of view, it's a very small unit on the size of our company. And since we had a railway siding, we had complete infrastructure. And with such a low CapEx, also enable us to utilize our stainless steel plates, which are going to be manufactured in our plant. So basically, it is more a strategy side, and we will be able to enhance more value.
Like one of the companies only in the country which has the capability to produce from ore to metal. So this is basically a concept where we are seeing that a lot of stainless steel wagons have been introduced by the government, and we are coming up with a flagship product in stainless steel. So we expect that it will help us to create more value for the organization and our shareholder by this forward integration. Thank you so much.
Thank you.
Thank you. The next question is from the line of Kunal Devendra Kothari from Nuvama Wealth Management. Please go ahead.
Hi. Good evening, sir. Many congratulations for a great set of numbers. Sir, a few questions from my side. This is regarding our key projects. So is it possible to share what are the key projects which are going to be executed in this? Main question is, are we looking at any other sector also to enter into it? Because earlier, we were looking to enter into DI Pipe mill, but we have not seen any CapEx going on over there. So any thought on that? And on top of it, now, because by year-end, we are going to end up with all the projects which is ongoing, so do we have something in mind now because our company now is on a bigger shape? Instead of doing small, small projects, which we have been successfully doing it, do we which can change the orbit of the company? Thank you.
First of all, I must tell you, the diversification what Shyam Metalics is doing is not a commodity diversification. If you see the kind of business what we have created in the aluminum sector and going for the expansion in aluminum, we are more than doubling the foil capacity and also going backward integration, putting up a downstream value-added product, which is a 100% substitute like fins and other critical aluminum component which is used in the automotive as well as in the railways and other sectors. So we are not working in this small orbit. We are working more on the quality and more niche product with the high return and more sustainable business. So we expect that this aluminum business in the next couple of years should at least grow by more than 250% what we are doing today.
So first of all, what we are doing, we start with a very, very small pilot model. We learn, and then we expand. Even in stainless steel, our output is very decent. We started with close to around 1,200, 1,500 crores top line in the first year. And now we are targeting of more than 5,500, 6,000 crores in the next two to three years. We learn the business, and then we make a model, and we make sure that all our business yield should have a decent IRR and ROI return. Related to your ductile business, yes. At present, it is a very small CapEx for us. We have put this project on hold for some time because we are seeing some kind of a challenge coming up in the businesses in respect to ductile.
First of all, some changes are there on the O-PVC side where we are seeing that - 400 is replacing. And apart from that, we are also seeing that very big expansion is coming up in ductile. So we are just evaluating again. I know we have not invested because these things we had been evaluating for more than six-to-nine months. And now we have decided that we will keep this project on hold, and it is a very small CapEx in the terms of the overall size of the CapEx what we have decided. And any other questions?
Yeah. I was looking at, sir, any other sector we are looking to enter the way we have gone to wagons and what are the key projects which are going to be executed in FY 2026? Yeah.
This year, we have the flat product, this color-coated business, and HR and all what we are doing right now, we are more than we are doubling. So from close to 200,000 tons approximately what we should be able to do this year, we are ramping up to close to 450,000-500,000 tons. So by end of this year, we'll be commissioning this project. And we are also ramping up the stainless steel long product and the wire business what we are planning to stabilize. We'll see some effect in this size also. And we are also increasing some capacity in the existing manufacturing facilities by little modifications, and some power plant has to be commissioned this year. So this is also one of the subjects which is going to be there this year. Yeah.
Thanks, sir. And lastly, in addition to. Thank you.
Yeah, please, sir, go ahead.
Yeah. In addition to that, as far as key project which will be commissioned in coming year, I would like to highlight on this that this year, 2025, 2026, majorly the carbon steel project will be commissioned. The growth which will be happening in the stainless steel and aluminum, the project of aluminum and stainless steel will be commissioned in the year 2026, 2027. So majorly the revenue, the major revenue will come up at the end of the year 2026, 2027. And sir, lastly, that same thing, any other sector we are looking to e nter?
Not yet. We are looking for a lot of things, but nothing has been decided.
Okay. And sir, about mining also, we are looking at the iron ore or coal side also?
Not really. We have been allocated iron ore mines in Maharashtra. And we are opportunists.
We are looking for some coal mining opportunities. Once we see that because coal is available in plenty, there's no problem of the coal availability and the coal prices. I don't see the time to come. But if we see something good on the mining side, which has a lot of lucrative advantage of logistics and quality and help us to more create an optimization on our operating efficiency, we might. But these are all the opportunities. There's nothing very concrete.
Understood. And sir, lastly, obviously, this is not for a short term. If somebody has to look for next five years after this expansion gets over, can we expect something big coming from us so that we can maximize our balance sheet also?
That we will give that we are thinking on the board right now. Maybe we come with a Diwali dhamaka at the time of Diwali. We are working on that.
Great, sir. Great.
You have to appreciate one thing. You have to appreciate one thing. The only company in the metal sector, which is kind of a debt-free, which doesn't have any interest carrying forward, which has a CAGR of more than 20%-25% year-on-year basis. In the last three and a half years from the revenue of INR 6,000 crores, we have touched close to INR 15,500 crores in three years. So whatever we had promised, I don't know about 100%, but yes, more than 90% we have delivered. You see the cost of CapEx what we have shared in our projection. You see what is the CapEx project. So we are extremely careful, and we are concerned on our returns and the value of our shareholders.
That's very true, sir. That's very true. And all the best for the future, sir. Thank you so much.
Thank you.
Thank you. The next question is from the line of Varun Mishra from M K Ventures. Please go ahead.
Congratulations on the good set of numbers. Opportunity, sir. I had a couple of questions from my end. Starting from the color-coated roofing sheet which we have it. So what has been the utilization trend as of Q1, sir? If you could just tell it.
The color coating. Yeah, yeah. Yeah, Deepak. Yeah. Yeah.
We are utilizing in the quarter one is 68% something.
Oh, that's 68%. And how could we see that throughout the utilization improving at what rate by the end of FY 2026? How can we, what can we expect?
I'll just brief you on this. The color capacity utilization, we have some bottleneck, like we are putting up a Galvalume line number two, and the present Galvalume line, whatever we are utilizing, we are utilizing 100%, but the color coated capacity is 200%, so we are expecting to commission the Galvalume line by end of this year, and after that, we'll be able to double the color business also, so these are under the expansion plan as per the business. We are developing the market. Everything is becoming set. It's a branded market where you need to also control the supply to control the price, and also, it is under the process.
All right, sir. And the Blast Furnace, which is at Jamuria, which has hit 100% capacity, sir. So can you provide as per the sales tonnage and the outlook for FY 2026?
We will be able to produce at 120%. The capacity of the Blast Furnace, what we have installed and I'm sharing, we'll be able to do close to 800,000 tons this year.
All right, sir. And sir, anything like any guidance for further anything you could add in?
Nothing. Just keep on watching your company. That's all. And pray God that you all have to do well.
That's it. That's it. Actually, I had one more question just a moment. Yeah. So this is the laminated aluminum films for the AC cooling, the thing which we use. So it is a 100% import segment. So have we received any trial orders or any OEMs for that? Have we signed it?
No, no, no, no. We don't need to. We are in the process of setting up the plant. Once your plant is set up, then you have to apply for the qualifications. But you don't have to look back because we have tied up with the world's best technology supplier. And we don't have to worry. You are seeing all our units. Whatever we set up, we never compromise on the technology side.
All right, sir. That's all from my end, sir. All the best for the future. Thank you.
Thank you. The next question is from the line of Rakesh Roy from Boring EMC. Please go ahead.
Hi, sir. So my first question, regarding, sir, do you see we are in bottom out of pricing pressure, and we see any price improvement from second half?
Your question is not clear, Mr. Roy. Sorry. Can you please repeat that, sir?
Sir, yeah. Are we seeing any bottom out of pricing pressure which we are facing currently? And do you see any pricing improvement from S2, from second half of this financial year?
Sorry to interrupt, sir. Sorry, voice is cutting out.
No, no, I'm here, sir. We never see any pressure. We see always an opportunity in the pressure. So everything is going on fine, looking at the result, and God willing, everything will go right. There's no pressure.
Okay. All right, sir. Sir, again, sir, for margin funds for FY 2026, how much are you looking for?
Sorry?
For margin for FY 2026, how much we are expecting, sir, for FY 2026? As far as margin?
We can't say all these things because of how the geopolitical situation. We have to see in the worst of the time also. We are working between 11%-13% EBITDA. So I think these days, I don't see anything will go further down. We expect that we should be able to do decent, and it's very difficult to project anything on the margin side, but yes. I don't see anything on the downside hence further for this year.
Okay. So we expect here for 30% margin sustained for FY 2026?
30% margin?
13% margin.
Yeah, 13.
Yeah, yeah. Sorry, sorry.
Yeah, yeah.
Yes. Okay, sir. Thank you, sir.
You investors put a lot of pressure on margins. People are never happy. People are never happy.
Thank you. The next question is from the line of Patanjali Srinivasan from Sundaram Mutual Fund. Please go ahead.
Thank you for the opportunity, sir. Very good set of numbers. I want some data points. So what was our capacity mix between CPP and WHRB currently? And post our expansion, where would it be in terms of megawatt?
As far as mix of captive power plant and outsourcing power, we are always 82% of our captive sourcing, and we are sourcing power from outside is around 20%-25%.
Sir, no, no. I wasn't asking about outside. In captive.
Captive power and.
Yes, pl ease.
Actually, you have to understand, in our company power model, we are hardly using coal. We are majorly using washery rejects and the byproduct of the washery and the other plant. And major portion of the fuel is also the middlings and the rejects what we generate from the washery.
Understood.
So the unique thing in our business is all our power plants are set up where we are using more than 70%-80% of the byproduct. And 20% is the fuel in the terms of low-grade coal what is used to sustain the heat rate in the boiler. And other power comes from the waste heat recovery from the kiln. At this point of time, it is very difficult for me because to say how much we are going to generate from the gas we use because fuel is also a byproduct. But you are seeing the price are so competitive where we are generating power. The price at what we are generating power, it's less than INR 2.5 a unit.
Correct.
So on an average, you can say maybe 30%, 35% or 40% must be waste heat. But I'm not 100% sure. I have to check because every day we are commissioning some plants and on. What is the data?
Sir, I would like the capacity, sir. The utilization is different. I get what you're saying. But I would like the capacity in our current 467 megawatts, how much would be from waste heat and how much would be from thermal power plant?
The waste heat recovery should be close to 35%-40%.
Okay. Okay. Understood.
Yeah, sir.
Sir, I'm just wondering if.
Post the expansion, post the expansion, it should reverse. Today, it's 60, 40. It'll reverse to around either 50, 50 or 40, 60. We'll be having a higher WHRB post the 90 megawatt implementation.
Sure, sir. Understood. Just one last question. Our CapEx for stainless steel and aluminum, what timelines are we expecting the plants to get commissioned by?
End of 27 years.
Okay. Okay. Sure, sir. Thank you, sir. Very good numbers. Congrats once again.
Thank you.
Thank you. The next question is from the line of Gaurav Gandhi from Glorytail Capital Management. Please go ahead.
Yes. Thanks for the opportunity. And congratulations on great set of numbers, sir. Sir, these days, there are a lot of talks about large ship vessels manufacturing in India. So whether this ship-grade steel is manufactured in India or not, and how are you looking at this opportunity?
Honestly speaking, we have not evaluated this. So I cannot comment anything on this. So these are very different grades. These are all basically the carbon steel plates. There we are not in the process of present manufacturing. But in the time to come, once we have any new business plans, we will be able to share that. But presently, no.
Okay. All right, sir. Thank you.
Ladies and gentlemen, this was the last question. And I now hand the conference over to Mr. Omkar Bagle from MUFG Intime for closing comments.
Yes. Thank you for joining us on the call today. I would like to thank the management for sparing the time and answering all the queries today. We are MUFG Intime, investor relations advisors to Shyam Metalics and Energy Limited. For any queries, please feel free to reach out to us.
Thank you. Thank you to everyone.
Thank you. On behalf of Shyam Metalics and Energy Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.