Shyam Metalics & Energy Ltd has announced plans for a $1.1 billion expansion through FY31, aiming to scale its capacity to around 27 MTPA.The funding will be largely through internal cash flows rather than debt, the company said. As of FY26, the company is in a net cash position, supported by profitability and steady cash generation. With cash accruals of over ₹2,000 crore, the company said it can fund the expansion on it’s own. JM Financial in a report said that the company remains committed to maintaining a net cash balance sheet, backed by strong operating cash flows and disciplined capital allocation. It also expects improving capital efficiency, as investments are increasingly directed toward higher-return businesses.Jefferies has taken a similar view, noting that even during peak expansion, “leverage should remain modest at ~0.2x net debt/EBITDA.” It expects the company to return to a net cash position as new capacities start generating stronger cash flows. This approach also protects the company from interest rate risks and refinancing pressure.According to Goldman Sachs the company is focused on staying net cash even while executing a large capex program, showing a clear balance between growth and financial discipline.Analysts said there are some risks, particularly around execution delays and fluctuations in steel prices, which could affect cash flows in the short term. However, diversification into value-added products and strong operational control provide a cushion against these risks, they added. Published - June 19, 2026 10:15 pm IST