Sarda Energy & Minerals Ltd – Investor Presentation Summary

Key Operational Highlights

  • Record thermal power generation at 5458 MU in FY26
  • Record hydro power generation at 661.37 MU in FY26
  • Record coal production at 17,99,998 MT in FY26
  • Record iron ore pellets production at 8,26,293 MT in FY26
  • Record sponge iron production at 3,45,066 MT in FY26
  • Record HB wire production at 40,425 MT in FY26
  • Thermal power plant operated at PLF of 79% in FY26 (PAF: 84%)

Key drivers of operational performance: Successful integration of SKS Power acquisition, approval for 1.80 MMT coal mining at Gare Palma IV/7, expansion of hydro power capacity with 24.9 MW Rehar SHP commissioned in 2025

Segment-wise Performance

Energy segment became the primary earnings driver, contributing two-thirds of consolidated EBITDA

Thermal power generation declined 7.5% YoY in Q4FY26 due to planned maintenance shutdown of one 300 MW turbine

Hydro power generation increased 87.5% YoY in Q4FY26 due to newly commissioned 24.9 MW Rehar SHP

Financial Highlights

Revenue: Rs 5,928 crore (FY26)

EBITDA: Rs 2,025 crore (FY26)

PAT: Rs 1,109 crore (FY26)

EPS: Rs 31.38 (FY26)

Margins: EBITDA Margin 29.3%, PAT Margin 18.7%

YoY comparison: Revenue up 23.1%, EBITDA up 43.7%, PAT up 58.0%

Q4FY26: Revenue Rs 1,258 crore, EBITDA Rs 352 crore (28.0% margin), PAT Rs 155 crore (12.3% margin)

Drivers of financial performance: Energy segment contribution, higher hydropower capacity, strong growth in value-added metal segment volumes, successful integration of SKS Power operations

Key Risks: Raw material price volatility, sensitivity to Chinese markets, regulatory changes

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Tangible Networth: Rs 7,335 crore (Mar-26)

Long Term Borrowings: Rs 2,134 crore (Mar-26)

Short Term Borrowings: Rs 460 crore (Mar-26)

Cash & Cash Equivalents: Rs 864 crore (Mar-26)

Total Assets: Rs 11,370 crore (Mar-26)

Financial Health Insights: Strong liquidity position of Rs 2,380 crore, long-term credit rating upgraded to AA- with Positive outlook

Capex & Cash Flow Health

Capital Expenditure: Ongoing projects include 600 MW thermal power, 141 MW hydro power, 50 MW solar power

Free Cash Flow: Not Specified

Operating Cash Flow: Rs 1,735 crore (FY26)

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion including plans to double thermal power capacity to 4x300 MW by FY30, expanding coal mining capacity

Strategic & R&D Initiatives

Investments in Innovation: Coal gasification opportunities, renewable energy capacity addition, mineral business vertical expansion

Expected impact on growth: Targeting to double EBITDA by FY30 through disciplined capacity expansion

Strategic Rationale: Transition from cyclical commodity-driven business to scalable diversified energy and mining business with steady EBITDA visibility

Industry Trends & Business Environment

Macro/Industry Trends: India's manufacturing push towards Viksit Bharat 2047, focus on energy security and import substitution under Atmanirbhar Bharat, government push towards coal gasification, India's vision to achieve 500 GW non-fossil fuel capacity by 2030

Impact on Company: Positioned to benefit from increasing power and industrial demand, aligned with India's long-term vision for energy security and economic self-reliance

Management Commentary & Growth Outlook

Strategic Outlook: Transition from mid-sized metal player to scalable and diversified energy and mining business with steady EBITDA visibility, strong cash flows and lower cyclicality

FY Guidance: Targeting to double energy capacity to 1,720.50 MW and quadruple mining capacity to 7.10 MTPA by FY30

Market Share Targets: Not Specified

Risks and Opportunities: Geopolitical tensions and structural energy supply risks, raw material price volatility, regulatory changes

ESG Updates

Health & Safety: Awarded Appreciation Award for Best Company in Entire Eastern Region in Safety category

Social Responsibility: Support to NGOs focusing on education, health, infrastructure, livelihood, arts, culture and sports

Environmental: Coal washery enhances coal quality to boost efficiency and reduce emissions

Corporate Governance

Experienced board with 9 members including independent directors

Credit ratings: CRISIL AA- / Positive / A1+ (SEML), CRISIL A / Positive / A1 (SMAL), ICRA A+ / Stable (Chhattisgarh Hydro Power), IND A+ / Stable/ A1 (Madhya Bharat Power)