This article first appeared on GuruFocus .
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Consolidated Revenue (Q3 FY26):INR 1,360 crore.
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EBITDA (Q3 FY26):INR 395 crore, up from INR 368 crore year-on-year.
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Consolidated PAT (Q3 FY26):INR 190 crore.
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Consolidated PAT (9-month FY26):INR 954 crore, a 59% increase year-on-year.
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Hydropower Generation (9-month FY26):Increased by 28% year-on-year to 621 million units.
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Net Debt (as of 31st December 2025):Below INR 500 crore, reduced from approximately INR 1,500 crore as of 31st March 2025.
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Ferro Alloys Export (Q3 FY26):Increased by 43% year-on-year to 33,272 metric tons.
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Release Date: February 09, 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 ) reported a robust operating performance for the 9-month period ended December 2025, with a focus on scaling the energy business and strengthening integration across mining.
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Hydropower generation increased by 28% year-on-year to 621 million units, supported by above-average monsoon conditions and the commissioning of the 24.9-megawatt Rehar hydropower project.
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The company signed a 40-year power purchase agreement with Chhattisgarh State Power Distribution Company Limited, providing long-term revenue visibility.
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Consolidated PAT for the 9-month period increased by 59% to INR954 crore, indicating strong financial performance.
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The balance sheet remains strong with negligible net gearing and net debt to EBITDA well below 1 times, and consolidated net debt significantly reduced from approximately INR1,500 crore to below INR500 crore as of December 2025.
Negative Points
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The third quarter was impacted by the annual maintenance shutdown of the IPP and a period of subdued metal and energy prices, affecting overall performance.
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Consolidated revenue for Q3 FY26 stood at INR1,360 crore, reflecting the impact of plant shutdowns and weaker price realizations.
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Steel production at Raipur was temporarily affected due to a shutdown in December.
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Approval processes for the Gare Palma IV/7, Bartunga, and Senduri coal mines are ongoing, indicating potential delays in expansion plans.
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The expansion of captive coal mine capacity from 1.8 million to 3 million tonnes is expected to take a minimum of two years due to necessary clearances, delaying potential output increases.
Q & A Highlights
Q: Could you provide details on the captive power plant (CPP) production and sales units for the quarter? A: The CPP produced 327-328 million units and sold 12 million units during the quarter. The average tariff for the Independent Power Producer (IPP) was around INR5, and it is expected to be slightly above INR5 in the next quarter. - Pankaj Sarda, Managing Director
Q: What is the status of the captive coal mine expansions, and what are the expected timelines? A: We are in the process of expanding from 1.8 million to 3 million tonnes, which will take a minimum of 24 months due to forest clearance requirements. - Pankaj Sarda, Managing Director
Q: Are there any plans for inorganic expansion or diversification into new sectors like nuclear energy or battery storage? A: We are exploring both inorganic and brownfield expansion opportunities. We are open to diversifying into sectors like nuclear energy and critical mineral mining if opportunities arise. - Pankaj Sarda, Managing Director
Q: What is the outlook for SKS Power Plant's capacity expansion and generation targets? A: We have signed an MOU with the state government for doubling SKS Power Plant capacity. The process will take about two years for environmental clearances. We are on track to meet our generation targets for the year, with a slight increase expected next year. - Pankaj Sarda, Managing Director
Q: How are steel prices and Ferro Alloys pricing trends affecting the company's performance? A: Steel prices have increased by 10% to 15% from multiyear lows, and we expect a blended hike of 12% to 15% in Q4. Ferro Alloys pricing has seen slight improvement, with domestic markets offering better realizations for certain grades. - Pankaj Sarda, Managing Director and Manish Sarda
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
