Image Source: Global Prime News
Shera Energy Ltd has reported a solid financial performance for the quarter ended June 2025, with consolidated revenue from operations reaching ₹3.87 billion and profit after tax (PAT) standing at ₹70.5 million. The Jaipur-based non-ferrous metal manufacturer continues to demonstrate resilience and operational efficiency amid fluctuating commodity prices and global demand shifts.
The company’s results reflect its strategic focus on product diversification, cost control, and expanding export markets, positioning it as a rising player in India’s industrial metals segment.
Key Financial Highlights
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Revenue from operations for Q1 FY26 stood at ₹3.87 billion, up 13.2% year-on-year.
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PAT reached ₹70.5 million, translating to a net margin of 1.82%, slightly above the industry average for mid-cap metal firms.
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EBITDA improved to ₹305 million, supported by better realizations and optimized raw material sourcing.
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EPS for the quarter rose to ₹2.94, compared to ₹2.24 in the same period last year.
Segmental Performance and Operational Drivers
Shera Energy’s product portfolio includes copper and aluminum conductors, brass rods, and winding wires used in transformers, motors, and electrical panels. The Q1 performance was driven by:
Domestic Demand
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Strong order flow from power transmission and electrical equipment manufacturers.
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Increased procurement from state utilities and infrastructure EPC firms.
Export Growth
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Export volumes rose 18% year-on-year, with key markets in Southeast Asia and the Middle East.
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The company benefited from favorable currency movements and reduced freight costs.
Cost Management
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Inventory days reduced to 75 from 92 last year, improving working capital efficiency.
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Raw material costs were contained through long-term contracts and strategic sourcing.
Market Reaction and Stock Movement
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Shera Energy’s stock rose 1.34% post-results, closing at ₹140 on NSE.
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The company’s market capitalization now stands at ₹342 crore, with a P/E ratio of 19.2 and a book value of ₹62.8.
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Despite a 26% decline in stock price over the past year, analysts note improving fundamentals and earnings visibility.
Governance and Strategic Updates
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Promoter holding remains stable at 63.58%, with no pledged shares.
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The company has initiated a postal ballot to appoint a new statutory auditor, reflecting its commitment to governance transparency.
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Plans are underway to expand manufacturing capacity by 15% over the next two quarters, with capex funded through internal accruals.
Investment Outlook
Shera Energy offers a compelling case for investors seeking exposure to India’s industrial and infrastructure growth. Key positives include:
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Consistent revenue growth and improving margins.
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Strong return ratios (ROCE at 17.2%, ROE at 13.7%).
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Low debt and efficient working capital cycle.
However, risks include commodity price volatility and limited dividend payouts. Investors with a medium-term horizon and appetite for mid-cap industrials may consider accumulating the stock on dips.
Source: Moneycontrol – August 5, 2025 Shera Energy Ltd Investor Relations – www.sheraenergy.com
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