Sarda Energy & Minerals' Subsidiary Receives Credit Rating Outlook Upgrade

Sarda Energy & Minerals Ltd announced that its wholly owned subsidiary, Sarda Metals & Alloys Ltd, has received an updated credit rating from CRISIL, reflecting improved financial outlook.

Credit Rating Details

The credit ratings for Sarda Metals & Alloys Ltd's bank facilities, totaling ₹659.81 crore, have been updated as follows:

Rating Type	Previous Rating	Updated Rating
Long-term Rating	CRISIL A/Stable	CRISIL A/Positive
Short-term Rating	CRISIL A1	CRISIL A1 (Reaffirmed)

The long-term rating has been reaffirmed at CRISIL A, but with an improved outlook from Stable to Positive. This change suggests that CRISIL anticipates a potential upgrade in the future if the company maintains its improved financial performance. The short-term rating of CRISIL A1 has been reaffirmed, indicating continued strong capability for timely payment of short-term debt obligations.

Implications of the Rating Update

The revision in outlook from Stable to Positive for the long-term rating is a positive development for Sarda Metals & Alloys Ltd. It may indicate:

Improved financial performance or stability
Enhanced business prospects
Strengthened market position

This rating update could potentially lead to better borrowing terms for the company in the future if the positive trend continues.

About Sarda Energy & Minerals Ltd

Sarda Energy & Minerals Limited (SEML), the parent company, is an established player in the energy and minerals sector. Incorporated in 1973, SEML operates iron ore and coal mines in Chhattisgarh and has thermal and hydropower generation plants across India. The company's operational capacity includes:

Thermal Power: 761.50 MW
Hydropower: 167 MW

SEML is also an integrated steel producer specializing in long steel products, with manufacturing facilities in Raipur, Chhattisgarh. Additionally, it is a leading producer and exporter of ferro alloys, with production facilities in Raipur and Vizag.

The credit rating upgrade for its subsidiary, Sarda Metals & Alloys Ltd, may reflect positively on the overall group's financial health and future prospects.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.17%	-1.52%	-6.79%	+16.08%	+22.31%	+1,739.24%

Sarda Energy & Minerals Limited (SEML) has reported a strong financial performance for the second quarter, with significant growth across key metrics.

Financial Highlights

Metric (₹ in Crore)	Q2 FY26	Q2 FY25	YoY Change
Revenue	1,527.78	1,158.66	+31.9%
EBITDA	580.16	392.83	+47.7%
EBITDA Margin	38.0%	33.9%	+410 bps
Net Profit	327.77	203.49	+61.1%
EPS (₹)	9.17	5.55	+65.2%

Revenue Growth and Profitability

SEML witnessed a robust 31.9% year-on-year increase in consolidated revenue, reaching ₹1,527.78 crore. This growth was primarily driven by strong performances across its steel, ferro alloys, and power segments.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant jump of 47.7%, climbing to ₹580.16 crore from ₹392.83 crore in the same quarter last year. The EBITDA margin improved by 410 basis points to 38.0%, reflecting enhanced operational efficiency.

Net profit for the quarter surged by 61.1% to ₹327.77 crore, compared to ₹203.49 crore in the previous year. This substantial increase in profitability underscores the company's ability to capitalize on favorable market conditions and internal operational improvements.

Segment Performance

Steel: The steel segment reported revenue of ₹447.38 crore, maintaining a steady performance.
Ferro Alloys: This segment saw a slight decline in revenue to ₹396.02 crore from ₹403.21 crore in the previous year.
Power: The power segment emerged as a significant growth driver, with revenue more than doubling to ₹892.36 crore from ₹419.84 crore in the previous year.

Balance Sheet and Cash Flow

As of September 30, SEML maintained a strong balance sheet with total assets of ₹11,012.32 crore. The company's cash and cash equivalents stood at ₹38.73 crore, ensuring adequate liquidity for operational needs and potential growth opportunities.

Outlook

The significant improvement in SEML's financial metrics, particularly in the power segment, indicates potential for sustained growth. However, investors should note that the company faces an ongoing legal challenge in the Supreme Court regarding its acquisition of SKS Power Generation (Chhattisgarh) Limited, which could impact future performance.

Sarda Energy & Minerals Limited continues to demonstrate strong financial health and operational efficiency, positioning itself well in the competitive steel and power markets. The company's ability to maintain this growth trajectory will likely depend on broader economic conditions, regulatory outcomes, and its capacity to leverage its diversified business model.