SARDAEN Q2 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹1,528 Cr
verified against source
Revenue YoY
32%
reported change
EBITDA
₹580 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Sarda Energy & Minerals delivered a resilient Q2 FY26 with consolidated revenue of Rs 1,500.28 crore (+32% YoY) and PAT of Rs 328 crore (+61% YoY), having already exceeded full-year FY25 profit in H1 alone. The energy segment contributed ~70% of operating profit, driven by record hydropower generation of 482M units in H1 (+32% YoY) following extended monsoon and the 24.9MW Rehrar plant commissioning. However, thermal power realizations declined to Rs 3.89/unit from Rs 4.67/unit YoY due to subdued demand from extended rainfall. The company commissioned the Rehrar hydropower project on July 8, 2025, and was awarded the Chanduri coal block in Madhya Pradesh. Capex guidance of Rs 500-600 crore for FY26 and Rs 500-700 crore annually for the next three years supports growth in coal mines, solar (50MW by FY26 end), and potential ITP expansion. Key risks include steel sector cyclicality, Indonesia coal land acquisition challenges, and ongoing Supreme Court proceedings where management asserts no material hurdles. The company targets record FY26 results despite sectoral headwinds.
Colored figures show movement against the previous available record.
Guidance to track
- Company has earmarked Rs 500-600 crore capex for FY26 covering coal mine expansion, hydropower projects, and 50MW solar plant commissioning expected by year-end.
- For the next three years, management has lined up capex of Rs 500-700 crore each year for ongoing projects including coal mines, hydro projects, and ITP expansion.
- The 600MW SKS thermal plant targets 80% average annual plant load factor with cost savings of approximately 15 paise per unit from lower coal prices.
- Strategy to tie up 50% capacity under medium/long-term PPAs (100MW medium-term under negotiation, 100MW long-term under negotiation) with remaining 25% for short-term/open market.
Risks flagged
- Steel prices rangebound at lower levels due to seasonal factors and imports; anti-dumping duties lifted on certain products from China, Vietnam, Korea in October 2025.
- The Indonesia coal mine (targeting 1.88MTPA) faces challenges in land acquisition due to plasma plantation of rubber and palm oil, with flooding risks from heavy rains. Expansion is dependent on government intervention for surface rights acquisition.
- While management asserts no material hurdles, the SKS power case has seen multiple hearing date shifts. Next hearing scheduled for November 18, 2025, and the legal process continues to take its own time, creating uncertainty around final resolution.
- The proposed ITP thermal power expansion (600-800MW configuration under study) is contingent on obtaining forest clearance and other regulatory approvals before construction can commence on the ground, beyond just DPR finalization.
Key quotes
- The company has exceeded the last whole year's profit in the first half itself. We remain confident of delivering record results for financial year '26 despite sectoral challenges in the steel sector.
- When we find an opportunity instead of using the captive power for production we sell power so as to maintain our margins instead of producing we divert the captive power for sale into the market that also rescues our margins.
- We have also participated in few of the other acquisition opportunities and that's ongoing process. So whenever something gets clicked that will be additional opportunity and as we told we hardly have any loan our gearing is very very low. So that growth opportunity if we find we have sufficient capability to acquire and go ahead.
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