Sarda Energy corrects FY26 coal sales data
Sarda Energy & Minerals reported a 58% YoY rise in FY26 PAT to INR1,109 crores, driven by a 44% EBITDA surge to INR2,025 crores. The company corrected domestic coal sales data for FY26 to 158 ('000 MT) from 150 ('000 MT) in a regulatory filing.
*this image is generated using AI for illustrative purposes only.
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.
Operational Data Correction
Sarda Energy filed a correction to its investor presentation dated June 5, 2026, regarding domestic coal sales figures. The company revised the data for the Gare Palma IV/7 mine and other domestic operations.
| Sales ('000 MT) | FY26 | FY25 | YoY % |
|---|---|---|---|
| Coal Domestic | 158 | 354 | (55.3)% |
Historical Stock Returns for Sarda Energy & Minerals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.10% | -1.41% | -9.19% | -2.67% | +19.95% | +689.63% |
What are the anticipated timelines and regulatory hurdles for securing environmental clearance for the proposed 1,200 MW thermal capacity expansion?
How will the capital outlay for the iron ore pellet plant expansion and the acquisition of the hydropower stake impact the company's current net debt-to-EBITDA ratio?
With domestic coal sales dropping significantly, what strategies will the employed to secure fuel supply for the expanded thermal capacity?
18
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
