Sarda Energy & Minerals (504614) Q3 25/26 earnings summary

Executive summary

• Delivered robust operating performance for the nine months ended December 2025, with steady execution across energy, minerals, and metals platforms despite planned shutdowns and subdued prices in Q3.

• Energy segment now contributes over two-thirds of EBITDA, driven by SKS Power (IPP Binjkot) operating at 81% PLF and new PPAs signed, enhancing medium-term revenue visibility.

• Vertically integrated operations have improved cost efficiency and fuel security, with ongoing capex in renewables and mining projects.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2025 were approved, showing strong revenue and profit growth year-over-year.

• Board re-appointed APAS & Co. LLP as Internal Auditors for FY 2026-27.

Financial highlights

• Q3 FY26 consolidated revenue was INR 1,276 crore, impacted by plant shutdowns and weaker price realizations; nine-month consolidated revenue grew 30% YoY to INR 4,437 crore.

• Q3 EBITDA rose to INR 395 crore, with EBITDA margin at 29.1% in Q3 and 30.9% for nine months; nine-month EBITDA up 53% YoY to INR 1,672 crore.

• Q3 consolidated PAT was INR 190 crore; nine-month PAT increased 59% YoY to INR 954 crore.

• Standalone revenue for Q3 FY26 was INR 918 crore, with net profit at INR 163 crore; nine-month standalone net profit was INR 789 crore.

• Net debt as of December 2025 was below INR 500 crore, down from INR 1,500 crore in March 2025; strong liquidity (~INR 2,300 crore) and low leverage.

Outlook and guidance

• Q4 is expected to be better than Q3, with improved power tariffs and higher steel price realizations.

• FY26 EBITDA target of INR 2,000 crore is on track; FY27 is expected to be higher, though no formal guidance is given due to industry cyclicality.

• Ongoing capex in renewable energy and mining, including a 50 MW captive solar project and hydro expansions, is expected to further strengthen the energy mix and earnings visibility.

• Results for the nine-month period are not comparable with previous periods due to the acquisition and amalgamation of SKS Power Generation.