Sarda Energy & Minerals (504614) Q4 25/26 earnings summary

Executive summary

• Transformed into a diversified, integrated energy and mining company over five years, with major investments in thermal power, hydropower, and coal mining, and successful integration of SKS Power operations.

• Achieved record operational and financial performance in FY 2026, with energy segment as the primary earnings driver and record generation and sales in thermal and hydro energy.

• Diversified business model now spans energy, minerals, and metals, reducing cyclicality and enhancing earnings visibility.

• Board recommended a record 200% dividend (₹2 per share), subject to shareholder approval.

• Major capacity expansions in energy and mining, with plans to double energy capacity and quadruple mining capacity by FY 2030.

Financial highlights

• FY 2026 consolidated revenue rose 23% YoY to ₹5,928 crore; EBITDA up 44% YoY to ₹2,025 crore; PAT up 58% YoY to ₹1,109 crore.

• Q4 FY 2026 revenue at ₹1,058 crore, EBITDA at ₹352 crore, and PAT at ₹155 crore, up 53% YoY.

• Cash profit reached ₹1,818 crore, up 52% YoY.

• Net debt reduced to ₹215 crore from ₹1,566 crore YoY; net debt/EBITDA improved to 0.11x; liquidity robust at ₹2,380 crore.

• Earnings per share (consolidated) for FY 2026 was ₹31.38, up from ₹19.86 year-over-year.

Outlook and guidance

• Plans to double SKS Power capacity to 1,200 MW by FY 2030, pending environmental clearance, and quadruple mining capacity.

• Annual CapEx (excluding SKS expansion) guided at ₹500–700 crore for the next two years.

• Pellet plant expansion to add 1.1 MnT capacity within 30 months, funded by internal accruals and debt.

• FY 2027 growth to be driven by efficiency improvements, full-year operation of Rehar hydro plant, and new solar and TG set commissioning; FY 2028 to benefit from new coal mine and hydro projects.

• Targeting to double EBITDA by FY 2030 through disciplined and profitable capacity expansion.