1. At a Glance
Shyam Century Ferrous Ltd is currently trading at ₹6.02, with a market cap of ~₹128 crore, and the stock has politely informed shareholders that gravity exists — down ~42% over 1 year and ~32% over 3 years. The latest quarter looks less like a business update and more like a medical report.
Q3 FY26 numbers?
Revenue collapsed to ₹0.84 crore, down 97.4% YoY, while PAT came in at -₹6.14 crore, which is not a typo but a full-blown operational shutdown signature. ROCE and ROE are both negative (~-5.7%), operating margins are at -1,162% (yes, four digits), and the plant that contributes 100% of turnover has been shut since 7 May 2025 due to power tariff issues.
Valuation metrics are doing somersaults because earnings are missing in action. The stock trades at 0.75× book value, debt is almost zero (₹1.13 crore), but that’s mostly because there’s barely any business activity left to borrow for.
This is not a cyclical downturn quarter. This is a “business paused, assets being explored for sale/lease” quarter. Curious yet? You should be.
2. Introduction
Shyam Century Ferrous was supposed to be a simple story.
Make ferro silicon.
Use captive power.
Sell into steel and alloy markets.
Print steady mid-cycle profits.
Instead, what we have today is a company that has shut its only operating plant, is bleeding losses every quarter, and whose board has approved an in-principle sale or lease of substantially the whole of its assets.
That sentence alone tells you this is no longer a “growth” or even “recovery” narrative. This is a survival + optionality narrative.
Ferro alloys are brutally power-intensive — power makes up 45–50% of cost of sales. Shyam Century’s entire strategy depended on cheap and reliable power in Meghalaya. When that assumption broke (tariff hikes, regulatory interruptions, pollution board notices), the business didn’t bend — it snapped.
Over FY22–FY23, volumes were stable (~15,000 MT of ferro silicon), but margins were already under stress. Fast forward to FY25–FY26, and revenues have evaporated quarter by quarter, culminating in ₹0.84 crore sales in Q3 FY26 — effectively nothing for a listed manufacturing company.
So the
real question isn’t “Is Shyam Century cheap?”
The real question is: Is Shyam Century even operating?
3. Business Model – WTF Do They Even Do?
On paper, Shyam Century Ferrous does two things:
- Manufactures ferro silicon
- Generates power (in theory)
In reality, as of Q3 FY26:
- Ferro silicon plant: Closed
- Captive power plant (14 MW): Non-operational
- Power sourced externally: Too expensive
- Revenue engine: Off
- Expense engine: Still running
Ferro silicon is a commoditized alloy used in steelmaking and foundries. Pricing is cyclical, volumes are steady, but margins depend entirely on power cost discipline. Large players survive because they have:
- Captive power
- Scale
- Long-term contracts
- Cost buffers
Shyam Century had only one plant, in Meghalaya, and that plant is both power-dependent and regulator-sensitive. Once power tariffs went up and pollution board issues kicked in, there was no Plan B.
In FY23, the company produced 14,967 MT and sold 14,981 MT of ferro silicon — a clean, boring, functional manufacturing story. Today? That plant contributed 100% of turnover, and now it contributes zero.
If you’re wondering whether this is diversification risk — yes.
If you’re wondering whether management anticipated this — filings suggest they reacted, not anticipated.
4. Financials Overview
Quarterly Performance Table (₹ crore)
| Metric | Latest Qtr (Q3 FY26) | Same Qtr Last Year | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 0.84 | 32.67 | 7.23 | -97.4% | -88.4% |
| EBITDA | -9.76 | -0.25 | -1.04 | NM | NM |
| PAT | -6.14 | 0.06 | 0.80 | -10,333% | -867% |
| EPS (₹) | -0.29 | 0.00 | 0.04 | NM | NM |
Annualised EPS (Quarterly Rule):
Q3 EPS = (-0.29 + earlier quarters average) × 4 is meaningless here because operations
