Sarda Energy & Minerals (504614) Q4 24/25 earnings summary

Executive summary

• FY25 marked a breakthrough year with record-high production in coal, iron ore, and pellets, and significant revenue and profit growth, supported by the acquisition and integration of SKS Power Generation.

• The company diversified into energy and minerals, with major CapEx in new hydro, solar, and mineral wool projects, and strong vertical integration across minerals, energy, and metals.

• Operational efficiency measures and strategic plant shutdowns for modifications impacted metal product output in Q4.

• Board recommended a dividend of ₹1.50 per share (150%) for FY25, subject to AGM approval.

Financial highlights

• FY25 consolidated revenue rose to ₹4,642.85 crore, up 20% YoY; Q4 revenue up 39% YoY but down 6% sequentially due to seasonal hydropower and plant shutdowns.

• FY25 EBITDA increased 56% to ₹1,410 crore (29.3% margin); Q4 EBITDA up 62% YoY.

• FY25 PAT grew 34% YoY to ₹702.19 crore (14.6% margin); Q4 PAT up 14% YoY.

• Cash profit for FY25 up 69% YoY to ₹1,199 crore.

• Standalone revenue for FY25 up 27% YoY to ₹3,484.17 crore; standalone PAT up 31% YoY to ₹608.06 crore.

Outlook and guidance

• Energy vertical contributed nearly 50% of EBIT in FY25 and is expected to rise further in FY26, driven by new power assets and improved PLF.

• 50 MW solar plant and further hydro projects to enhance green energy portfolio and reduce costs.

• No specific forward volume or margin guidance, but management expects operational improvements and higher efficiency to drive better results.

• Government spending, RBI liquidity measures, and safeguard actions are expected to support growth and margins in the domestic steel industry.