Sarda Energy & Minerals Ltd reported a 58% increase in its consolidated net profit to ₹1,109 crore for the fiscal year ended March 31, 2026. Revenue from operations rose to ₹5,928 crore from ₹4,815 crore in the previous fiscal year. The company’s board has recommended a dividend of ₹2 per share, equivalent to 200%, subject to shareholder approval. Additionally, the board approved the expansion of pellet manufacturing capacity by 1.1 million tonnes (MnT) with an approximate investment of ₹500 crore.

FY26 Financial Performance

For the full year, the company reported a net profit of ₹1,109 crore, compared to ₹702 crore in FY25. The profit before tax increased to ₹1,449 crore from ₹918 crore in the corresponding period last year. The EBITDA for the year rose 43.7% to ₹2,025 crore, with an EBITDA margin of 29.3%. Earnings per share (basic) improved to ₹31.38 from ₹19.86 in the previous year.

The following table summarises the key financial metrics for the year:

Q4 Performance

In the fourth quarter of FY26, the company posted a net profit of ₹155 crore, compared to ₹101 crore in the same quarter of the previous year. Revenue from operations for Q4FY26 was ₹1,254 crore versus ₹1,239 crore in Q4FY25. The statutory auditors, M/s. Singhi & Co., issued an unmodified opinion on the standalone and consolidated results.

Strategic Direction and Capacity Expansion

The company highlighted a significant transformation, targeting to double EBITDA by FY30 through disciplined capacity expansion. The total energy capacity reached 929.50 MW in FY26, up from 191.50 MW in FY21. The management noted that the energy segment contributed two-thirds of consolidated EBITDA, strengthening earnings visibility.

The Board approved the expansion of pellet manufacturing capacity by 1.1 MnT. The project, estimated to cost ₹500 crore, will be financed through internal accruals and debt. The company expects its total capacity to reach 1,720.50 MW by FY30, including thermal, hydro, and solar power additions. Coal mining volumes improved following the approval for 1.80 MMT at Gare Palma IV/7.

Corporate Announcements

The Board of Directors approved the re-appointment of M/s. S.N. & Company as Cost Auditors for FY27, subject to ratification by shareholders. The investor presentation for Q4 and FY26 results was disseminated to the exchanges on May 23, 2026.

Sarda Energy & Minerals has received a major legal endorsement as the Hon'ble Supreme Court upheld the company's resolution plan for SKS Power. The Managing Director of the company described the ruling as a significant milestone, signaling a pivotal moment in the company's strategic journey in the power sector.

Supreme Court Ruling on SKS Power Resolution Plan

The Supreme Court's decision to uphold Sarda Energy & Minerals' resolution plan for SKS Power removes a key legal uncertainty that had been associated with the acquisition process. The MD's statement highlighted the importance of this judicial affirmation, positioning it as a foundational development for the company's future operations in the power segment.

Capacity Expansion Plans

With the legal pathway now cleared, Sarda Energy & Minerals is positioned to advance its planned capacity expansion to 4x300 MW by FY30. The resolution plan's judicial backing is expected to facilitate the operational and infrastructural groundwork required to achieve this expansion target. The company's MD emphasized that this ruling directly paves the way for executing the outlined capacity growth strategy.

Strategic Importance of the Development

The Supreme Court's affirmation of the resolution plan represents a critical step in Sarda Energy & Minerals' efforts to consolidate and expand its presence in the power generation sector. The SKS Power acquisition, now legally secured, is central to the company's broader capacity enhancement roadmap leading up to FY30. This development underscores the company's commitment to scaling its power business through structured resolution and expansion initiatives.