Credit Rating

SMEL/SE/2026-27/95 November 06, 2026 The Manager, Listing Department The Secretary, Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street, Mumbai – 400 001. Scrip Code No. 543299 Bandra – Kurla Complex Bandra (E), Mumbai – 400 051 NSE Symbol: SHYAMMETL Sub: Intimation regarding Re-affirmation of Credit Rating by CRISIL Ratings Limited Dear Sir / Madam, Pursuant to Regulation 30 read with Schedule III, Part A, Para A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that CRISIL Ratings Limited has re-affirmed the long-term and short-term credit rating of Shyam Metalics and Energy Limited (“the Company”) as follows: Credit Rating Agency Particulars Rating Action Total Bank Loan Facilities Rated - ₹ 4500 Crore (Enhanced from ₹ 3600 Crore) Long Term: CRISIL CRISIL AA+/Stable Reaffirmed Short Term: CRISIL A1+ Reaffirmed Rs. 50 Crore Commercial paper: CRISIL A1+ Reaffirmed The rating re-affirmation reflects the Company’s strong financial profile, prudent capital structure, robust liquidity, operational efficiencies, and consistent business growth. We are enclosing herewith rationale given by CRISIL for re-affirmation of the credit rating, wherein Long-term rating re-affirmed to 'CRISIL AA+' with ‘Stable’ Outlook. Further, Short term and Commercial Paper ratings are also reaffirmed to ‘CRISIL A1+’. This is for your information and Record. For Shyam Metalics and Energy Limited Birendra Kumar Jain Company Secretary Membership No. F13320 OUR BRANDS SHYAM METALICS AND ENERGY LIMITED Regd. Office: P-19, (Plate No.: D-403), Taratala Road, CPT Colony, Kolkata, West Bengal – 700088 CIN: L40101WB2002PLC095491 GSTIN: 19AAHCS5842A1ZE T:+91 33 6521 6521 Email: contact@shyamgroup.com Web: www.shyammetalics.com Follow us on : Power | Fer ro Alloys | Pellets | Pig Iron | Billets | Sponge Iron | Wire Rod | Wire | TMT & Structurals | Aluminium Foil | Roofing Product | Stainless Steel | DI Pipes 11/6/26, 12:17 PM Rating Rationale Rating Rationale November 04, 2026 | Mumbai Shyam Metalics and Energy Limited Ratings reaffirmed at 'Crisil AA+ / Stable / Crisil A1+ '; Rated amount enhanced for Bank Debt Rating Action Regulator Of Total Bank Loan Facilities Rated Rs.4500 Crore (Enhanced from Rs.3600 Crore) Instrument Long Term Rating Crisil AA+/Stable (Reaffirmed) RBI Short Term Rating Crisil A1+ (Reaffirmed) RBI Regulator Of Instrument Ratings Instrument Rs.50 Crore Commercial Paper Crisil A1+ (Reaffirmed) RBI Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has reaffirmed its ratings on the bank facilities and commercial paper programme of Shyam Metalics and Energy Ltd (SMEL; SMEL and its subsidiaries are collectively referred to as the Shyam Metalics group) at ‘Crisil AA+/Stable/Crisil A1+’. The ratings continue to reflect the established market position of the group in the steel sector, diversified product and customer profiles, healthy operating efficiency supported by integrated operations and strategic locations of manufacturing units, and the longstanding experience of the promoters in the steel sector. The ratings also factor in the strong financial risk profile backed by healthy debt protection metrics. These strengths are partially offset by exposure to project execution risk with sizeable capital expenditure (capex) planned over the medium term, vulnerability to fluctuations in raw material and finished goods prices, and exposure to inherent cyclicality as well as competitive and capital-intensive nature of the steel industry. The rating reaffirmation reflects the group’s healthy operating performance and strong financial risk profile, despite the sizeable capex underway. Consolidated Ebitda (earnings before interest, taxes, depreciation, and amortisation) increased to Rs 2,358 crore in fiscal 2026 from Rs 1,868 crore in fiscal 2025, supported by higher volumes across product segments, while Ebitda per tonne remained stable at Rs 4,770 compared with Rs 4,797. Operating performance is expected to strengthen further, with Ebitda projected to exceed Rs 3,000 crore and blended Ebitda per tonne to improve to over Rs 5,000 in fiscal 2027. The improvement will be driven by the ramp-up of recently commissioned capacities, healthy realisations, sustained cost efficiencies and an increasing contribution from finished and value-added products. The group’s entry into flat steel, commissioning of pig iron capacity, and expansion in stainless steel and aluminium should also enhance product diversification and integration across the value chain, thereby improving resilience in profitability. The group’s ongoing capex is expected to support growth in scale and profitability over the medium term. However, with most projects scheduled for completion by fiscal 2029, timely execution, stabilisation of new capacities and achievement of the envisaged improvement in product mix and margins will remain monitorable. The financial risk profile remains strong and is expected to sustain despite the planned growth capex of Rs 9,000-10,000 crore over fiscals 2027-2030. As on March 31, 2026, the total outside liabilities to tangible networth ratio remained healthy at 0.64 time, while interest coverage and net cash accrual to total debt ratios were strong at 12.8 times and 1.4 times, respectively, for fiscal 2026. The capex is expected to be funded through annual internal accrual of Rs 2,000-2,500 crore and available liquidity, with external debt supporting working capital requirement. Accordingly, net debt to Ebitda is expected to remain below 0.5 time and interest coverage ratio at 10-12 times over the medium term. A material increase in debt-funded capex, delays in commissioning or ramp-up, or weakening of profitability resulting in sustained deterioration in these debt protection metrics will remain monitorable. Analytical Approach Crisil Ratings has combined the business and financial risk profiles of SMEL and its subsidiaries because these companies, together referred to as the Shyam Metalics group, are in the same business and under a common management and have https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/ShyamMetalicsandEnergyLimited_November 04_ 2026_RR_409617.html 1/10 11/6/26, 12:17 PM Rating Rationale significant operational and financial linkages. Bills receivable discounted of Rs 323 crore in fiscal 2026 (fiscal 2025: Rs 278 crore) have been classified as debt. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation Key Rating Drivers - Strengths Established market position in East India, increasing product diversification, and extensive experience of the promoters The group is one of the largest players in the steel and steel intermediates industry in east India. The promoters have been associated with the steel industry for over three decades and have established forward as well as backward integrated operations. Combined capacities increased to 18.49 million tonne per annum (MTPA, including pellets of 6 MTPA, sponge iron of 3.05 MTPA, billets of 2 MTPA and other finished steel capacities of 2.07 MTPA) as on September 30, 2026, from ~2.9 MTPA in fiscal 2019. Furthermore, the group has been focusing on increasing product diversity and high share of finished and value-added products in the overall sales. During fiscal 2026, the share of finished and value-added products in consolidated sales remained steady at ~42% (45% in fiscal 2025 against 38% in fiscal 2022). Diversified product mix includes pellets (~6.5% of revenue [Showing first 8,000 characters — download PDF for full document]