Sarda Energy & Minerals Limited has reported a robust financial performance for the second quarter of fiscal year 2026, with significant growth in revenue and profitability. The company's strategic investments in diverse energy sectors are paying off, as evidenced by record-breaking production levels across multiple segments.

Financial Highlights

Sarda Energy posted consolidated revenue of INR 1,528.00 crores for Q2 FY26, marking a substantial 32% year-on-year increase. The company's EBITDA rose to INR 580.00 crores, while profit after tax grew by an impressive 61% to INR 328.00 crores.

Operational Achievements

The company achieved its highest-ever half-yearly production across several key areas:

• Iron ore pellets
• Captive power generation
• Hydropower generation
• Coal operations in Indonesia

Power Segment Performance

The Independent Power Producer (IPP) thermal power plant showed remarkable improvement, ranking 11th in all-India capacity utilization for the half-year, a significant jump from its 125th position in the previous year. The plant achieved a power load factor of 85.27% in Q2, compared to 56.13% in the same quarter last year.

Hydropower generation saw a 32% year-on-year increase, reaching 482 million units in the first half of FY26, supported by above-average monsoon conditions.

New Projects and Expansions

• The 25-megawatt Rehar Hydropower project was successfully commissioned in July 2025, achieving a power load factor of 110% during the quarter.
• Sarda Energy secured the allocation for the Senduri coal block in Madhya Pradesh's Shahdol district, expanding its coal mining portfolio.
• The company is progressing with a 50-megawatt captive solar power plant, expected to be commissioned by the end of the current financial year.

Strategic Outlook

Padam Kumar Jain, Director and CFO, stated, "We remain confident of delivering record results for financial year '26 despite sectoral challenges in the steel sector. Our strategy of reinvesting surplus cash into diversified future-ready projects provides visibility on the growth perspective."

The company is pursuing a balanced approach in its power sales strategy, aiming for:

• 50% of capacity tied up in medium or long-term contracts
• 20% for short to medium-term agreements
• 25% for open market sales

This strategy is designed to optimize realizations across different market conditions.

Upcoming Developments

• Expansion of the Gare Palma IV/7 coal mine from 1.68 million tons to 1.80 million tons per annum is expected in the current quarter.
• The company is in the process of seeking approvals for the expansion of its existing 600-megawatt IPP thermal power project.
• Three small hydropower projects of 25 megawatts each are in various stages of approval.

Sarda Energy & Minerals Limited's diversified portfolio and strategic investments in the energy sector position it well for sustained growth, despite cyclical challenges in the steel industry. The company's focus on renewable energy sources and efficient power generation is likely to contribute significantly to its future performance.

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:

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:

1. Improved financial performance or stability
2. Enhanced business prospects
3. 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.