Sarda Energy & Minerals Limited (SARDAEN)
₹488.85 +0.93% last close, 16 Oct
Q2 FY27 results
📅 Next results: 31 Oct 2026 (board meeting)Sarda Energy & Minerals Limited's board meets on 31 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Sarda Energy's revenue was ₹1,608 Cr (-1.5% year on year, +28.2% on the previous quarter), and net profit ₹478 Cr (+9.5% year on year); the operating margin was 40.6%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,608 | -1.5% | +28.2% |
| Operating profit | ₹653 | +5.9% | +87.8% |
| Net profit | ₹478 | +9.5% | +208.5% |
| EPS (₹) | 13.00 | +5.4% | +190.2% |
| Operating margin | 40.6% | — | — |
SARDAEN delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 53.85% of the SARDAEN shares traded on NSE were taken to delivery, against the stock's own 20-session average of 47.78%. That is close to its usual level. Volume was 0.3 times its average, well below normal.
Delivery in the last 5 sessions: 46.1% · 52.1% · 49.9% · 48.9% · 53.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Sarda Energy & Minerals announced that its wholly-owned subsidiary, Sarda Metals & Alloys Limited, has been declared the preferred bidder for the Avagudem Expired Manganese Mining Lease Block in Vizianagaram, Andhra Pradesh. The mine holds an estimated total geological reserve of 0.70 million tonnes (MT) of manganese ore. This secures backward integration for the company's manganese-based ferro alloys manufacturing business. Financial terms, capex, and operational timelines for mine development were not disclosed in the filing.
- Subsidiary Sarda Metals & Alloys declared preferred bidder for Avagudem Manganese Mining Lease Block
- Estimated total geological reserves stand at 0.70 million tons of Manganese Ore
- Block located in Vizianagaram District, Andhra Pradesh
- Supports raw material security for the company's manganese-based ferro alloys portfolio
Sarda Energy & Minerals Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. Issued by its Registrar and Share Transfer Agent, Bigshare Services Pvt. Ltd., the certificate covers the quarter ended 30th September 2026. It confirms that share certificates received for dematerialisation were duly verified, mutilated, and cancelled within prescribed timelines. This is a recurring administrative filing with zero impact on operational or financial metrics.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended 30th September 2026
- Certificate issued by Registrar and Share Transfer Agent Bigshare Services Pvt. Ltd. dated 08/10/2026
- Confirmation that securities received were processed, cancelled, and substituted within prescribed timelines
Sarda Energy & Minerals announced that credit rating agency CRISIL has upgraded the bank facilities of its wholly owned subsidiary, Sarda Metals & Alloys Ltd (SMAL). The long-term rating on ₹659.81 crore of bank facilities was upgraded from CRISIL A/Positive to CRISIL AA-/Stable. The short-term rating was also upgraded from CRISIL A1 to CRISIL A1+. The rated facility amount represents approximately 11.6% of Sarda Energy's consolidated TTM revenue of ₹5,666 crore, signaling improved balance sheet health and potentially lower borrowing costs.
- Bank facilities rated: ₹659.81 crore for wholly owned subsidiary Sarda Metals & Alloys Ltd.
- Long-term bank facility rating upgraded from CRISIL A/Positive to CRISIL AA-/Stable.
- Short-term bank facility rating upgraded from CRISIL A1 to CRISIL A1+.
- Total rated facility represents ~11.6% of consolidated TTM revenue (₹5,666 crore).
Sarda Energy & Minerals announced that rating agency CRISIL has upgraded its long-term credit rating for bank facilities to 'CRISIL AA/Stable' from 'CRISIL AA-/Positive'. The short-term credit rating has been reaffirmed at the top tier of 'CRISIL A1+'. The total bank facilities evaluated under this rating action aggregate to ₹2,845.50 crore, which represents approximately 50.2% of the company's TTM revenue of ₹5,666 crore. The upgrade reflects strengthened creditworthiness and operational resilience across its steel, ferro alloys, and power segments.
- Long-term bank facilities rating upgraded from CRISIL AA-/Positive to CRISIL AA/Stable
- Short-term bank facilities rating reaffirmed at CRISIL A1+
- Total bank facilities covered under the rating stand at ₹2,845.50 crore
- Rated facilities constitute ~50.2% of TTM revenue (₹5,666 crore)
India Ratings & Research has affirmed the 'IND A1' rating for the bank loan facilities of Sarda Metals Alloys Ltd., a wholly owned subsidiary of Sarda Energy & Minerals Ltd. The affirmed rating covers bank facilities aggregating ₹500 million (₹50 crore). Relative to Sarda Energy's TTM revenue of ₹5,687 crore, the ₹50 crore facility accounts for under 1% of total top-line scale. The affirmation indicates stable short-term creditworthiness and working capital access for the subsidiary.
- India Ratings & Research affirmed 'IND A1' rating for subsidiary bank loan facilities
- Rated facility amount is ₹500 million (₹50 crore)
- Applicable to wholly owned subsidiary Sarda Metals Alloys Ltd.
- No change in rating notch or credit outlook reported
Sarda Energy & Minerals Limited has received a credit rating of 'IND A1+' from India Ratings & Research Pvt. Ltd. for its Commercial Paper program. The rating applies to an issue size of up to ₹1,000 million (₹100 crore) with a maturity period of up to 365 days. The 'IND A1+' rating reflects the highest degree of safety regarding timely servicing of short-term financial obligations. This enables the company to access competitive short-term money market funding against its ₹5,687 crore TTM revenue base.
- India Ratings & Research assigned 'IND A1+' rating to Commercial Paper
- Total rated issue size is ₹1,000 million (₹100 crore)
- Tenor of the Commercial Paper instrument is up to 365 days
- Rated issue size represents ~1.76% of TTM revenue (₹5,687 Cr)
Sarda Energy & Minerals Limited has submitted its Annual Report for FY 2025-26 along with the Notice convening its 53rd Annual General Meeting (AGM). The AGM is scheduled to be held on September 24, 2026. The integrated report highlights sustained operational integration across metals, energy, and mining sectors. The filing is a standard statutory compliance disclosure under SEBI LODR Regulation 34(1).
- 53rd Annual General Meeting scheduled for September 24, 2026
- Submitted complete integrated Annual Report for the financial year 2025-26
- Reported ~1.94 lakh tonnes of waste recovered through circularity and recycling efforts
- Employee welfare spend increased to ₹4.50 Cr compared to ₹3.76 Cr previously
- Performance management coverage expanded to ~98% of employees versus ~77% YoY
Sarda Energy & Minerals Limited (SARDAEN) has issued a clarification to the National Stock Exchange (NSE) regarding a recent significant increase in trading volume. The company stated that it has consistently disclosed all material information under Regulation 30 of SEBI Listing Regulations. Management clarified that the volume spurt is purely market-driven and they are not connected to the trading activity. This filing indicates no undisclosed material developments are currently pending.
- Response issued on August 14, 2026, following an NSE surveillance query dated August 13, 2026
- Company confirms all material information impacting operations has been disclosed within stipulated time
- Management explicitly states they are not connected with the increase in share trading volume
- Company maintains a significant market capitalization of Rs 19,010 Cr with 73.2% promoter holding
Sarda Energy & Minerals Limited has announced the successful completion of the replacement of its TG 1 (Turbo Generator 1) unit as of August 10, 2026. The new generator is now fully operational and the plant has achieved stability in its operations. This update signifies the end of a maintenance or upgrade cycle for this specific unit, which is critical for the company's captive power requirements. Given the company's TTM revenue of ₹5,317 Cr and its integrated business model, the return of TG 1 to stability supports operational efficiency in its steel and ferroalloy segments.
- Replacement activities for TG 1 (Turbo Generator 1) were completed on August 10, 2026
- The new TG unit has been made fully operational following the replacement
- The plant has achieved stability in operations post-installation
- Company maintains a TTM revenue of ₹5,317 Cr and TTM PAT of ₹1,028 Cr
Sarda Energy reported its highest-ever quarterly EBITDA of Rs 762 Cr and PAT of Rs 478 Cr in Q1 FY27, supported by a one-time regulatory gain of Rs 110 Cr. The energy segment has become the primary earnings driver, contributing 70% of consolidated EBITDA, with the SKS Power plant operating at a high PLF of 85.9%. The company is now net debt-free on a consolidated basis with a cash surplus exceeding Rs 2,500 Cr, which is roughly 14% of its current market cap. Management is aggressively pursuing brownfield expansion at SKS Power (doubling to 1,200 MW) and new mining blocks, all funded through internal accruals.
- Q1 FY27 PAT reached Rs 478 Cr, a 9.4% YoY growth, including a Rs 110 Cr one-time benefit from Sikkim hydro project cost approval.
- Energy business now contributes 70% of consolidated EBITDA, providing significant stability against metal price volatility.
- Maintains a strong liquidity position of over Rs 2,500 Cr and is net debt-free on both standalone and consolidated bases.
- SKS Power (600 MW) achieved an 85.9% PLF; 380 MW of total 710 MW saleable power is now under medium/long-term PPAs.
- Mineral wool segment is ramping up with a revenue target of Rs 90-110 Cr for FY27 as capacity utilization hits 60-65%.
Sarda Energy & Minerals' wholly owned subsidiary, Sarda Metals & Alloys Ltd (SMAL), has been upgraded from a Three Star to a Four Star Export House by the Directorate General of Foreign Trade (DGFT). This certification is valid for a five-year period from June 30, 2026, to June 30, 2031. While primarily administrative, this status provides operational advantages such as faster customs clearances and simplified documentation for international trade. This aligns with the company's stated strategy of targeting global markets for its ferro alloys business.
- Status upgraded from Three Star to Four Star Export House by the Ministry of Commerce & Industry.
- The certification is valid for a 5-year duration starting 30.06.2026.
- The upgrade applies to Sarda Metals & Alloys Ltd, a 100% wholly owned subsidiary of the company.
- The status remains in effect until 30.06.2031.
Sarda Energy & Minerals has published the audio recording of its Q1 FY27 analyst conference call held on August 3, 2026. The company currently maintains a TTM revenue of Rs 5,317 Cr and a robust operating margin of 30.2%. The call likely addresses the integration of the 600 MW SKS Power plant and the progress of expanding captive coal capacity to 3.0 MTPA. This filing is a standard procedural requirement following the release of quarterly financial results.
- Conference call conducted on August 3, 2026, to discuss Q1 FY27 financial performance.
- Company maintains a TTM Net Profit of Rs 1,028 Cr with an EPS of Rs 29.20.
- Strategic focus remains on the integration of the 600 MW SKS Power plant acquired in FY25.
- Plans to increase captive coal mine capacity from 1.68 MTPA to 3.0 MTPA to support growth.
- Targeting a 32% growth rate through power and mineral sector acquisitions.
Sarda Energy reported a resilient Q1 FY27 with consolidated PAT of Rs 478 Cr, up 9.4% YoY, aided by a one-time Rs 110 Cr regulatory true-up for its Sikkim Hydropower plant. The energy segment has become the primary growth engine, contributing nearly 70% of consolidated EBITDA (Rs 762 Cr). Despite operational disruptions in the steel segment due to a captive turbine shutdown and a temporary hydro plant outage, the company maintained a net debt-free balance sheet. Management reiterated a medium-term strategy to double energy capacity and quadruple mining capacity.
- Consolidated PAT reached Rs 478 Cr, including a one-time net benefit of Rs 110 Cr from regulatory approval of Sikkim Hydropower project costs.
- Energy segment contributed approximately 70% to consolidated EBITDA, offsetting temporary production drops in metals.
- Thermal Power (IPP) generation stood at 1,126 Mn KwH, while Coal production reached 6,37,411 MT for the quarter.
- Steel Billet production fell 65% YoY to 19,079 MT due to a planned 30 MW captive power unit replacement, expected to resume in August 2026.
- Company remains net debt-free with a strong cash profit of Rs 712 Cr for the quarter, up 11% YoY.
Sarda Energy & Minerals (SEML) reported its highest-ever quarterly PAT of ₹478 crore in Q1 FY27, marking a 9.4% YoY increase. The performance was significantly aided by a one-time regulatory benefit of ₹110 crore related to the 113 MW Sikkim Hydropower Plant. The energy segment has become the dominant earnings driver, contributing approximately 70% of the consolidated EBITDA of ₹762 crore. Despite temporary operational disruptions from maintenance, the company remains net debt-free and is targeting a massive expansion to quadruple mining capacity and double energy generation in the medium term.
- Reported highest-ever quarterly PAT of ₹478 crore and EBITDA of ₹762 crore in Q1 FY27.
- Included a one-time net benefit of ₹110 crore from regulatory approval of final project costs for the 113 MW Sikkim Hydropower Plant.
- Energy business contributed nearly 70% of consolidated EBITDA, highlighting a shift in business mix.
- Total Income for the quarter stood at ₹1,717 crore, a 36.4% growth over the preceding quarter (Q4 FY26).
- Management announced medium-term plans to quadruple mining capacity and double energy generation capacity.
Sarda Energy & Minerals reported a consolidated net profit of ₹478.13 crore for Q1 FY27, a 9.5% increase from ₹436.66 crore in the same quarter last year. This profit includes a significant one-time net positive impact of ₹110.21 crore following regulatory approval of the Sikkim Hydropower project costs. Consolidated revenue remained nearly flat at ₹1,608.04 crore. Crucially, the board has approved a fundraise of up to ₹1,000 crore through debt instruments, which represents approximately 18.8% of its TTM revenue, signaling potential capital expenditure or acquisition activity.
- Consolidated Net Profit reached ₹478.13 Cr, aided by a ₹110.21 Cr net gain from Sikkim Hydropower project adjustments.
- Board approved seeking shareholder consent for raising up to ₹1,000 Cr via debt instruments.
- Consolidated Revenue from Operations stood at ₹1,608.04 Cr, compared to ₹1,633.11 Cr in the year-ago period.
- Power segment revenue grew to ₹938.74 Cr, while Steel segment revenue dipped to ₹446.55 Cr from ₹514.40 Cr YoY.
- Record date for FY25-26 dividend payment fixed as August 14, 2026.
Financial Performance
Revenue Growth by Segment
Consolidated revenue reached INR 1,528 Cr in Q2 FY26, representing a 32% YoY growth. The energy segment has become a dominant driver, contributing approximately 70% of the operating profit in Q2 FY26 following the SKS Power acquisition.
Geographic Revenue Split
Exports currently account for approximately 20-30% of the group's revenue, primarily driven by ferro alloy sales through the SMAL subsidiary located near Vishakhapatnam port. This proportion is expected to decrease as domestic power revenue from SKS Power scales up.
Profitability Margins
Consolidated PAT margin stood at 15.12% in FY25, up from 13.55% in FY24. Standalone net profit margin improved to 17.45% in FY25 from 17.04% YoY. The improvement is attributed to higher operating margins in the newly acquired power business.
EBITDA Margin
Consolidated EBITDA margin improved to 29% in FY25 from 24% in FY24. In Q2 FY26, EBITDA rose to INR 580 Cr from INR 393 Cr YoY, driven by the energy segment's 70% contribution to operating profits.
Capital Expenditure
Planned capital expenditure for FY25 is estimated at INR 400-500 Cr, focused on the commissioning and expansion of captive coal mines and ongoing maintenance of steel and power facilities.
Credit Rating & Borrowing
CRISIL reaffirmed the rating at 'AA-/Positive/A1+' in November 2025, upgrading the outlook from Stable. Borrowing costs are reflected in a finance cost of INR 220 Cr for FY25, up from INR 128 Cr in FY24 due to fresh debt for the SKS acquisition.
Operational Drivers
Raw Materials
Key raw materials include thermal coal (100% captive for steel business) and iron ore. Raw material costs reached INR 2,573 Cr in FY25, representing approximately 53% of total revenue.
Import Sources
Raw materials are primarily sourced from captive mines in Chhattisgarh (Gare Palma IV/7 coal mine). Logistics for exports are optimized via proximity to the Vishakhapatnam port in Andhra Pradesh.
Key Suppliers
The company operates a self-feeding ecosystem with captive mineral resources for iron and coal, reducing dependency on external suppliers like Coal India or private miners.
Capacity Expansion
Current coal capacity at Gare Palma IV/7 was expanded from 1.44 MTPA to 1.68 MTPA, with plans to increase to 1.8 MTPA and eventually 3.0 MTPA. The SKS Power acquisition added 600 MW of thermal power capacity.
Raw Material Costs
Raw material costs rose to INR 2,573 Cr in FY25 from INR 2,407 Cr in FY24. The company utilizes a backward integration strategy where captive coal meets the entire requirement of the steel business, protecting margins from global price volatility.
Manufacturing Efficiency
Capacity utilization remains high in the metals business. SKS Power's rating is sensitive to maintaining Plant Load Factors (PLFs) above 70%.
Logistics & Distribution
Distribution costs are managed through strengthening rail and road infrastructure and strategic plant locations near ports and mineral belts.
Strategic Growth
Expected Growth Rate
32%
Growth Strategy
Growth is driven by the integration of the 600 MW SKS Power plant, expanding captive coal mine capacity from 1.68 MTPA to 3.0 MTPA, and pursuing further acquisition opportunities in the power and mineral sectors.
Products & Services
Iron pellets, sponge iron, billets, wire rods, wires, ferro alloys (manganese-based), thermal power, and hydro power.
Brand Portfolio
Sarda Energy & Minerals Ltd (SEML), Sarda Metals & Alloys Ltd (SMAL), SKS Power Generation (Chhattisgarh) Ltd.
New Products/Services
Increased focus on long-term Power Purchase Agreements (PPAs) for SKS Power to stabilize revenue at remunerative tariffs.
Market Expansion
The company is targeting global markets for ferro alloys via its SMAL subsidiary while expanding its domestic energy footprint in Chhattisgarh.
Market Share & Ranking
Established market position in the Sarda group with diversified revenue streams across steel, ferro alloys, and power.
Strategic Alliances
Acquisition of SKS Power Generation (Chhattisgarh) Limited under the NCLT process w.e.f. August 22, 2024.
External Factors
Industry Trends
The industry is seeing a shift toward integrated players with captive power and fuel. Power demand in India remains healthy, though pricing on exchanges like IEX is subject to seasonal fluctuations (INR 3.89 to 4.37 range).
Competitive Landscape
Operates in a highly competitive and cyclical steel and ferro alloy market, competing with both domestic integrated players and global exporters.
Competitive Moat
The moat is built on deep backward integration (100% captive coal for steel) and a diversified revenue base (Steel + Energy), which provides a 'self-feeding ecosystem' and protects against cyclicality in any single segment.
Macro Economic Sensitivity
Highly sensitive to global steel demand and commodity price cycles. Operating margins remained healthy at 14% even during the 2016 industry downturn.
Consumer Behavior
Industrial demand for steel and national grid demand for power are the primary drivers; power demand was recently affected by extended rainfall and below-average temperatures.
Geopolitical Risks
Geopolitical uncertainty and changes in government import/export policies (e.g., export duties) pose material risks to the ferro alloy and steel divisions.
Regulatory & Governance
Industry Regulations
Operations are subject to evolving environmental requirements and NCLT/NCLAT legal frameworks regarding acquisitions.
Environmental Compliance
The company is ISO 14001 certified and reported planting 8,009 plants around its facilities in FY25.
Taxation Policy Impact
Current tax liability fell in FY25 due to the set-off of brought-forward losses from SKS Power against the company's standalone profits.
Legal Contingencies
The NCLT order for the SKS Power acquisition has been challenged by other bidders in the National Company Law Appellate Tribunal (NCLAT) and the matter is currently sub-judice.
Risk Analysis
Key Uncertainties
The primary uncertainty is the sub-judice NCLAT matter regarding the SKS acquisition. Additionally, steel business margins are sensitive to global price volatility.
Geographic Concentration Risk
Significant operations are concentrated in Chhattisgarh, though the SMAL subsidiary provides geographic diversity via its Andhra Pradesh location.
Third Party Dependencies
Low dependency for thermal coal (100% captive), but exposed to third-party bidders' legal challenges in the NCLAT.
Technology Obsolescence Risk
The company identifies rapid technological advancement as a material risk and focuses on technological implementation to maintain efficiency.
Credit & Counterparty Risk
Receivables quality is reflected in a debtors' turnover of 10.87 days (Consolidated FY25). Loans and advances to group entities (excluding SMAL) stood at INR 1,293 Cr (36% of net worth) as of March 2024.
