Sarda Energy & Minerals (504614) investor relations material

Executive summary

• Achieved record consolidated revenue and profit in Q1 FY26, driven by strong energy segment performance, higher energy prices, and the SKS Power acquisition, with energy now contributing a larger share to earnings.

• Operational efficiency led to a 90%+ plant load factor at the IPP thermal power plant, with significant improvement in national ranking.

• Strategic focus on expanding energy and mineral assets, with major investments in renewable and thermal power, and backward integration to reduce input costs.

• Strong ESG initiatives, including waste-to-wealth projects, transition to EVs, and robust CSR programs.

• Results include the impact of the SKS Power Generation acquisition, making year-over-year comparisons less meaningful.

Financial highlights

• Q1 FY26 consolidated revenue reached ₹1,633 crores, up 76% YoY and 32% QoQ, with EBITDA up 108% to ₹697 crores and PAT up 120% to ₹437 crores; EBITDA margin improved to 40.7%.

• Standalone revenue for Q1 FY26 was ₹1,307 crores, up 97% YoY; standalone EBITDA up 134% to ₹596 crores; PAT up 113% to ₹386 crores.

• Cash profit for Q1 FY26 at ₹642 crores, up 161% YoY.

• Net consolidated debt reduced to ₹1,000 crores, with liquidity at ₹1,700 crores in cash and investments.

• Earnings per share (consolidated, basic and diluted) for Q1 FY26 was ₹12.33.

Outlook and guidance

• Energy division expected to be the major EBITDA contributor from FY26 onwards, with potential to double IPP Binjkot (SKS Power) capacity.

• Steel volumes expected to remain stable for FY26, with power plant PLF guidance at 80%.

• CapEx of ₹500–1,000 crores per year planned for the next 2–3 years, focused on energy and mining expansion.

• No immediate plans for steel expansion; focus remains on energy and mining projects.

• Management notes that results for the current and immediate previous quarters include SKS Power, affecting comparability.