This article first appeared on GuruFocus .
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Revenue:FY26 revenue increased 23% Y-o-Y to INR5,928 crores from INR4,815 crores in FY25.
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EBITDA:FY26 EBITDA grew 44% Y-o-Y to INR2,025 crores from INR1,410 crores in FY25.
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Profit After Tax (PAT):FY26 PAT rose 58% Y-o-Y to INR1,109 crores from INR702 crores in FY25.
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Q4 FY26 Revenue:INR1,258 crores.
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Q4 FY26 EBITDA:INR352 crores.
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Q4 FY26 PAT:INR155 crores, a 53% increase Y-o-Y.
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Thermal Power Generation:Reached 4,155 million units in FY26, up 84% Y-o-Y.
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Hydropower Generation:Increased to 661 million units in FY26, a 31% growth Y-o-Y.
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Net Debt:Reduced to INR215 crores as of March 31, 2026, from INR1,566 crores as of March 31, 2025.
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Liquidity:Consolidated liquidity at INR2,380 crores.
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Iron Ore Pellet Production:Record production of 826,293 metric tons in FY26.
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Sponge Iron Production:Increased to 345,066 metric tons in FY26.
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HP Wire Production:Record production of 40,425 metric tons in FY26.
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Dividend:Board recommended a record dividend of 200%, subject to shareholder approval.
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Warning! GuruFocus has detected 4 Warning Signs with BOM:538920.
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Release Date: May 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Sarda Energy & Minerals Ltd ( BOM:504614 ) has successfully diversified its business model, transitioning from a cyclical commodity-linked metals business to a more integrated energy and mining company.
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The company achieved a significant financial milestone by surpassing its INR2,000 crores EBITDA guidance and crossing a market capitalization of INR20,000 crores.
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Sarda Energy & Minerals Ltd ( BOM:504614 ) reported a strong financial performance with a 44% year-on-year growth in EBITDA and a 58% increase in profit after tax for FY26.
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The company has a robust balance sheet with a significant reduction in net debt by over 85%, maintaining a strong liquidity position of INR2,380 crores.
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The energy segment continues to drive growth, contributing two-thirds of the company's EBITDA, with record levels of thermal and hydropower generation achieved in FY26.
Negative Points
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The company's financial performance was impacted by planned operational shutdowns and seasonality, affecting steel production and thermal power generation.
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Price realization in the steel segment improved during the quarter but remained lower compared to FY25, indicating ongoing challenges in the steel market.
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Global instability, including geopolitical tensions and energy supply risks, could impact the company's operations and market conditions.
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The expansion of the SKS Power capacity to 1,200 megawatts is contingent on obtaining environmental clearances, which could delay the project timeline.
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The company's mining operations faced limitations due to the exhaustion of approved annual limits, highlighting potential regulatory and operational constraints.
Q & A Highlights
Q: After a long time, Sarda Energy is doing some CapEx in the steel division, specifically in the pellet plant. What prompted this decision? A: Pankaj Sarda, Managing Director, explained that the environment clearance is already in place, and there is availability of land and water. With many mines expected to open in Chhattisgarh soon, the company aims to be ready for production in the next 2 to 2.5 years.
Q: Do you think the steel and ferro alloy division has bottomed out, and can we expect a better year ahead? A: Manish Sarda, Deputy Managing Director, believes that current prices seem to have bottomed out. However, global scenarios, such as geopolitical tensions, could impact demand. He is optimistic about price recovery once global stability is achieved.
Q: Regarding the Power division, is there room for efficiency improvements in the SKS Power plant? A: Manish Sarda stated that there is always scope for improvement. The company has invested over INR140 crores in CapEx at the Binjkot plant and plans to invest another INR150 crores over the next two years to enhance plant performance.
Q: Is Sarda Energy considering bidding for iron ore mines in Chhattisgarh, and could owning a mine benefit the pellet plant? A: Pankaj Sarda confirmed that the company is looking at opportunities in the sector and would consider bidding for mines if they come up for auction in Chhattisgarh and neighboring states.
Q: What is the CapEx schedule for FY27 and FY28, and what projects will drive top-line growth? A: Padam Jain, CFO, stated that annual CapEx will be in the range of INR500 crores to INR700 crores, excluding the SKS power project expansion. For FY27, growth will be driven by efficiency improvements and the availability of the Rehar power plant. In FY28, the Shahpur coal mine and the wool project will contribute to growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
