Sarda Energy & Minerals (504614) Q3 25/26 earnings summary

Executive summary

• Robust operating performance for the nine months ended December 2025, with steady execution across integrated energy, minerals, and metals businesses despite planned shutdowns and subdued prices in Q3.

• Energy segment now contributes over two-thirds of EBITDA, driven by SKS Power (IPP Binjkot) operating at 81% PLF and new PPAs signed, enhancing medium-term revenue visibility.

• Vertically integrated operations have improved cost efficiency and fuel security, with ongoing capex in renewables and mining projects.

• Strong liquidity (~Rs.2,300 crore) and low leverage, with growth largely funded through internal accruals and a CRISIL AA-/Positive/A1+ credit rating.

• Board re-appointed APAS & Co. LLP as Internal Auditors for FY 2026-27.

Financial highlights

• Q3 FY26 consolidated revenue at INR 1,360 crore, impacted by plant shutdowns and weaker price realizations; nine-month consolidated revenue grew 30% YoY to Rs 4,437 crore.

• Q3 EBITDA rose to INR 395 crore from INR 368 crore year-on-year, mainly driven by energy segment; EBITDA margin improved to 29.1% in Q3FY26 and 30.9% for 9MFY26.

• Q3 consolidated PAT at INR 190 crore; nine-month PAT up 59% year-on-year to INR 954 crore.

• Standalone revenue from operations for Q3 FY26 was ₹917.62 crore, up from ₹796.26 crore in Q3 FY25; nine-month revenue was ₹3,316.96 crore, up from ₹2,471.07 crore year-over-year.

• Cash profit for 9MFY26 rose 58% YoY to Rs 1,496 crore.

Outlook and guidance

• Q4 expected to be better than Q3, with average IPP tariffs anticipated to rise above INR 5 per unit.

• FY26 EBITDA target of INR 2,000 crore remains on track; FY27 expected to be higher, though no formal guidance due to industry cyclicality.

• Ongoing capex in renewable energy and mining, including a 50 MW captive solar project and hydro expansions, is expected to further strengthen the energy mix and earnings visibility.

• SKS power generation for FY26 on track for 400 crore units, with FY27 guidance at 410–420 crore units.

• CapEx for FY26 guided at INR 550–600 crore, with similar levels expected for FY27, excluding inorganic opportunities.