SHERA - Shera Energy

📊 NSE: SHERA 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 13:12

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 45.96% YoY to INR 1,277.30 Cr in FY25 from INR 875.11 Cr in FY24. Segments include Copper, Aluminum, and Brass solutions, though specific percentage growth per segment is not disclosed.

Geographic Revenue Split

The company exports to 15+ countries and has recently expanded into the African market through Shera Zambia Limited. Specific percentage split by region is not disclosed.

Profitability Margins

Consolidated Net Profit margin improved to 1.75% in FY25 (INR 22.40 Cr) from 1.61% in FY24 (INR 14.05 Cr). The company reported a 15% ROE and a 39% ROCE as of FY25.

EBITDA Margin

Consolidated EBITDA margin was 4.73% in FY25 (INR 60.48 Cr), a decrease from 6.00% in FY24 (INR 52.55 Cr). Management noted a 42% YoY EBITDA growth in H1 FY26 reaching INR 41 Cr.

Capital Expenditure

The company raised INR 30.93 Cr through a preferential issue in Q4FY25 for capex and working capital. Specific investments include INR 12.36 Cr in Shera Metal and INR 10.00 Cr in Shera Zambia for capacity expansion.

Credit Rating & Borrowing

CARE Ratings assigned 'CARE BBB+; Stable' for long-term and 'CARE A3+' for short-term facilities. Consolidated interest and finance charges were INR 30.29 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Copper, Aluminum, and Brass are the primary raw materials. Specific percentage of total cost for each is not disclosed.

Import Sources

Zambia is a key source for copper cathode following the acquisition of a plant through Shera Zambia Limited.

Capacity Expansion

Current consolidated installed capacity is 46,750 MT as of September 2025. Planned expansion includes scaling Zambian operations to 5,000 MTPA.

Raw Material Costs

Raw material costs increased proportionally with revenue growth. Management uses price growth and production line enhancements (up 12%) to mitigate cost volatility.

Manufacturing Efficiency

The company enhanced its production line by 12% across all products. Operational efficiency is supported by rotating working capital funds 8 to 10 times annually.

📈 Strategic Growth

Expected Growth Rate

39%

Growth Strategy

Growth will be achieved through strategic expansion into Central Africa (Shera Zambia), backward integration via a copper cathode plant, and product diversification into wires and strips to capture higher-margin market segments.

Products & Services

Enamelled, PICC and PIAC conductors for power and distribution transformers, and various copper, aluminum, and brass wires and strips.

Brand Portfolio

Shera Energy Limited (formerly Shera Energy Private Limited).

New Products/Services

New product launches include wires and cables specifically designed for the Zambian and nearby African markets.

Market Expansion

Expansion into the African market through Shera Zambia Limited to focus on wire and cable production.

Strategic Alliances

The company is an associate of Isha Infrapower Private Limited.

🌍 External Factors

Industry Trends

The industry is evolving toward green energy and infrastructure development, growing at a pace that allowed Shera to increase its scale of operations from INR 600 Cr to INR 780 Cr on a half-yearly basis.

Competitive Landscape

Faces competition from both global and domestic non-ferrous metal players, particularly in pricing and technological advancements.

Competitive Moat

Durable advantages include 20+ years of excellence and critical vendor approvals from PGCIL for conductors up to 33KV, which are sustainable due to high technical entry barriers.

Macro Economic Sensitivity

Highly sensitive to infrastructure investments, 'Make in India' initiatives, and green transition projects which drive demand for non-ferrous metal solutions.