Sarda Energy Reports Record Q1 FY27 Profit, EBITDA Rises 9.4% Despite Temporary Operational Disruptions

BY ADMIN • FILED 03 Aug 2026, 9:07 AM

Sarda Energy & Minerals Ltd. (SARDAEN) delivered a resilient performance in the first quarter of FY27, reporting record quarterly profit despite temporary operational disruptions across some of its businesses. The integrated mining, metals, and energy company posted a 9.4% year-on-year increase in consolidated EBITDA and its highest-ever quarterly Profit After Tax (PAT), supported by strong contributions from its energy business and a one-time regulatory benefit related to its Sikkim hydropower project.

The company also reaffirmed its long-term growth strategy, targeting a significant expansion in both mining and power generation capacities by FY30.

Q1 FY27 Financial Highlights

Sarda Energy reported total income of Rs. 1,717 crore during Q1 FY27, remaining broadly flat compared to the same period last year.

Key financial highlights include:

Total Income: Rs. 1,717 crore (up 0.2% YoY)
Revenue from Operations: Rs. 1,608 crore
EBITDA: Rs. 762 crore (up 9.4% YoY)
EBITDA Margin: 44.4%, compared with 40.7% a year ago
Profit Before Tax: Rs. 615 crore (up 11.2% YoY)
Profit After Tax: Rs. 478 crore (up 9.4% YoY)
Cash Profit: Rs. 712 crore (up 11% YoY)

The company noted that Q1 FY27 PAT included a one-time net benefit of Rs. 110 crore following regulatory approval of the final project cost for its 113 MW Sikkim Hydropower Plant.

Energy Business Continues to Drive Growth

Energy remained the company’s strongest business segment during the quarter, contributing nearly 70% of consolidated EBITDA.

Power generation during Q1 FY27 included:

Thermal Power Generation: 1,391 million kWh
Hydro Power Generation: 119 million kWh

Hydropower generation was temporarily affected after a transmission tower collapse disrupted operations at the company’s 113 MW Sikkim hydropower plant from June 18, 2026. Operations resumed on July 5, 2026, and management expects normal production from the second quarter.

The company believes its expanding thermal, hydro, and renewable portfolio will continue to strengthen earnings visibility over the coming years.

Metals Business Faces Temporary Production Challenges

The metals segment experienced lower production during the quarter due to planned maintenance and equipment replacement.

Key production figures included:

Iron Ore Pellets: 224,097 MT
Sponge Iron: 76,712 MT
HB Wire: 10,724 MT

Steel production was affected by the shutdown of one 30 MW captive power unit for replacement work, while one ferro alloy furnace and the Vizag captive power plant also underwent maintenance. The captive power unit is expected to resume operations during August 2026.

Despite these temporary disruptions, iron ore pellet production improved sequentially and helped support overall operating performance.

Mining Operations Support Integrated Business Model

Mining operations continued to meet captive requirements, strengthening the company’s vertically integrated business model.

Coal production during Q1 FY27 stood at:

Domestic Coal: 637,411 MT

Mine development activities remain on schedule as Sarda Energy prepares for a significant increase in mining capacity over the next few years.

Management Commentary

Managing Director Pankaj Sarda said the company demonstrated the resilience of its integrated business model despite planned maintenance, temporary outages, and seasonal factors.

He added that the company remains confident of scaling operations with plans to quadruple mining capacity and double energy generation capacity over the medium term. Backed by a net debt-free balance sheet, strong cash generation, and disciplined capital allocation, management expects operations to return to their normal trajectory from Q2 FY27.

Strong Financial Position Supports Expansion

One of the company’s biggest strengths remains its healthy balance sheet.

Highlights include:

Net debt-free consolidated position
Strong operating cash flows
Comfortable liquidity
Positive outlook from CRISIL
Low leverage ratios

The robust financial position is expected to support the company’s ambitious growth plans without placing significant stress on its balance sheet.

Growth Strategy: Double Energy, Quadruple Mining Capacity

Sarda Energy has outlined an aggressive expansion roadmap through FY30.

The company plans to:

Double its energy generation capacity.
Increase renewable energy capacity to 400 MW.
Expand coal mining capacity to more than 7 MTPA.
Invest over Rs. 10,000 crore in growth projects.
Double EBITDA over the medium term through capacity expansion and operational excellence.

Energy is expected to remain the primary earnings driver, while mining is positioned to become the company’s second major growth engine.

Long-Term Business Transformation

Over the past five years, Sarda Energy has transformed from a cyclical steel-focused company into a diversified energy and mining enterprise.

Between FY21 and FY26, the company achieved:

Revenue growth from Rs. 2,343 crore to Rs. 5,928 crore
EBITDA growth from Rs. 664 crore to Rs. 2,025 crore
PAT growth from Rs. 376 crore to Rs. 1,109 crore
Five-fold increase in energy generation capacity
More than ten-fold increase in market capitalization

This transformation has been driven by acquisitions, power capacity expansion, coal mining development, and greater integration across businesses.