Sarda Energy FY26 profit jumps 58% to INR1,109 crores

Sarda Energy & Minerals reported a strong financial performance for FY26, with profit after tax rising 58% year-on-year to INR1,109 crores. The company's diversified energy and mining strategy drove a 44% increase in EBITDA to INR2,025 crores, surpassing its earlier guidance of INR2,000 crores. Consolidated revenue for the year grew 23% to INR5,928 crores, while the market capitalization crossed INR20,000 crores during the period.

The Board has recommended a record dividend of 200%, subject to shareholder approval. Operational highlights included the highest ever thermal power generation of 4,155 million units and hydropower generation of 661 million units. The energy segment contributed two-thirds of the total EBITDA, underpinned by the successful integration of SKS Power assets and the commissioning of the 25-megawatt Rehar hydropower project.

Financial Performance

For the fourth quarter of FY26, consolidated revenue stood at INR1,258 crores. EBITDA for the quarter was INR352 crores, while PAT increased 53% year-on-year to INR155 crores. The standalone operating performance was impacted by planned shutdowns, including the replacement of a 30-megawatt captive power unit, though financial results improved due to better market conditions.

Metric	FY26	FY25	Growth
Consolidated Revenue	INR5,928 crores	INR4,815 crores	23%
EBITDA	INR2,025 crores	INR1,410 crores	44%
Profit After Tax	INR1,109 crores	INR702 crores	58%
Net Debt	INR215 crores	INR1,566 crores	-85%

Strategic Developments

The Supreme Court dismissed dissenting appeals against the company's resolution plan for SKS Power Generation Chhattisgarh Limited, clearing the path for expansion. Sarda Energy aims to double its thermal capacity to 1,200 megawatts by FY30, leveraging existing infrastructure such as land, water, and grid connectivity. The company has applied for environmental clearance for this brownfield expansion.

In the mining sector, the Gare Palma IV/7 coal mine reached its maximum permissible production limit of 1.8 million tons per annum in FY26. Development of the Shahpur West coal mine is progressing as scheduled, with commissioning targeted before the end of FY27. The company also received consent to operate for expanding production capacity at Gare Palma IV/7.

Expansion and Outlook

The Board approved the expansion of the iron ore pellet plant capacity at Raipur from 9 lakh tons to 20 lakh tons, involving a capital outlay of approximately INR500 crores. The project is expected to be completed within 2.5 years. Additionally, the company approved acquiring a majority stake in Adishankar Khuitam Power Private Limited, which holds rights for a 66-megawatt hydropower project in Arunachal Pradesh.

Management highlighted that the Indian power sector witnessed record peak demand of 270.8 gigawatt during the quarter. While steel prices recovered by 10% to 15% in Q4FY26, the company remains cautious about global volatility and geopolitical tensions impacting input costs. Sarda Energy continues to maintain a robust liquidity position of INR2,380 crores and a net debt-to-EBITDA ratio of well below 1x.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.25%	-0.41%	-12.20%	+7.58%	+19.28%	+873.57%

Sarda Energy & Minerals Ltd has disclosed the audio recording link for its conference call with investors and analysts held on May 25, 2026. The meeting was conducted to deliberate upon the financial performance for the fourth quarter and fiscal year 2026. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The audio recording of the conference call is available for access via the company’s official digital platforms. In the event of technical difficulties with the direct link, stakeholders can retrieve the file through the Investors section of the corporate website under the Financials or Investor Presentation sub-headings.