Sarda Energy & Minerals Limited (NSE: SARDAEN) Q1 2026 Earnings Call dated Aug. 04, 2025
Corporate Participants:
Unidentified Speaker
Pankaj Sarda — Managing Director
Pankaj Sarda — Managing Director
Manish Sethi — Compliance Officer, Company Secretary
Analysts:
Unidentified Participant
Ankit Jain — Analyst
Mana — Analyst
Rakesh Roy — Analyst
Priyansh — Analyst
Gautam Jain — Analyst
Rajesh Bhandari — Analyst
Vedant — Analyst
Manav Gogia — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Sarda Q1FY20. Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call for SADA Energy and Minerals Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ankit Jain from Stellar Investor Relations. Thank you.
And over to you sir.
Ankit Jain — Analyst
Thank you, Shruti. Good evening everyone and thank you for joining us today to discuss Q1FY26 business performance. We have with us senior management team of Sada Energy and Minerals Limited represented by Mr. Pankaj Sada, Managing Director, Mr. Padam Kumar Jain, Director and Chief Financial Officer, Mr. Manish Sada, Deputy Managing Director and Mr. Nile Joshi, Executive Director. Before we proceed with this call, I would like to mention that some of the statements made in today’s call may be forward looking in nature and may involve risks and uncertainties. The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made.
Documents relating to the company’s financial performance including the investor presentation have been uploaded on the Stock Exchange and company’s website. I now hand over the conference call to Mr. Pankaj Sadha and then we will open the floor for Q and A. Thank you. And over to you sir.
Pankaj Sarda — Managing Director
Thank you. Good afternoon ladies and gentlemen. Operational performance FY25 marked a significant milestone in our growth journey and Q1 FY26 performance reinforces the strong foundation and long term sustainability of our earnings. The earning mix has also evolved with increasing share of energy business. In the total earning we achieved record revenue and profit this quarter driven by better energy prices and higher hydropower generation. Hydropower Generation grew by 37% YoY supported by early monsoon. Our IBP thermal power plant achieved significantly improved plant load factor of 90.21% in Q1 as against 71.65% in Q1 FY25 largely due to ongoing operational efficiency measures.
For the quarter ended the plant stood at 15th rank in Central Electricity Authority’s ranking of best thermal power plants against 118th rank in June 2024. The pellet plant and captive power plant also reported record production. We strategically terminated the long term power purchase agreement executed with CSPDCL for 113 megawatt hydropower project. This now gives us the opportunity to sell power in open market which we believe will be beneficial over the long term. Expansion and Project Updates coal mines Gare Palma 4×7 we have received consent to operate for increased capacity of coal washtree from 0.96 million tonnes to 1.8 million tonnes in May 2025.
Final approval for increasing coal mining capacity from 1.68 million ton to 1.8 million ton is expected this quarter. Charcoal West Mine development work is progressing as per schedule and production is expected before the end of the next financial year. Bartunga Hill jv, BPR and mining plant submitted to SCCL Forest Land Diversion approval is in progress. Power Plant rehar hydropower project 25 megawatt the commercial operation began on 8th July 2025. We have entered into long term power supply arrangement with CFPDCL at generic tariff. Generic tariff for current year is yet to be notified by the regulator.
Kotavira hydropower project 25 megawatt the project is in approval stage with work expected to begin in next quarter. Two additional small hydropower projects are in various stages of approval. Captive solar power 50 megawatt most of the equipment has been delivered and transmission line work is ongoing. Project commissioning is expected in current financial year. 30 megawatt TG set replacement work is on schedule with operations expected to begin by mid FY27. We will be taking shutdown of the unit in next quarter. Financial performance in Q1FY26 we posted record consolidated revenue of Rs 16.33crore up 76% YoY and 32% QoQ.
The YoY increase partially reflects the inclusion of IPP Operations required on 22 August 2024. Improved volumes and realizations in steel and ferro oil also contributed, especially after maintenance shutdowns impacted Q4FY25. Profitability Operating EBITDA rose to Rs 627 versus 382 crores YoY with the energy segment contributing larger share. Consolidated profit after tax grew 118% YoY to Rs 435 crores. Strong price realization for untied up power supported this growth, though prices have softened this quarter. Debt and Liquidity Net consolidated debt including working capital loans fell to rupees 1000 crores from rupees 1600 crores. Long term loans repayable within the next year stands at rupees 206 crores.
Liquidity remains robust with rupees 1700 crores in cash and liquid investments excluding treasury loans. The net debt to EBITDA Ratio is well below one. I now hand over to Sri Manish Saradaji to discuss the industry overview and outlook over to you.
Manish Sethi — Compliance Officer, Company Secretary
Thanks Pankaj. India’s fiscal deficit is projected to decline to 4.4% in FY26 down from 4.8% in FY25. The lower inflation has enabled early rate cuts supported by RBI’s liquidity measures. Infusion of liquidity by RBI has helped in transmission of rate cut to the industry. This will positively impact corporate earnings and capex tax breaks is also expected to boost consumption. Global steel production declined over 4% year on year in quarter one to 466 million tonnes with China down 6%. Despite this, Chinese exports surged with net exports exceeding 53 million tonnes during January to May 25 putting pressure on global pricing.
In contrast, India recorded 10.3% growth in crude steel production to 40.6 million metric tonnes with 8% growth in finished steel demand. Imports moderated post imposition of safeguard duty and quality control order but still exceeded exports. Although because of higher growth in production over consumption, the long product steel prices remain under pressure. Lower input costs like iron ore, coke, coal helped improve margins. The Indian coal index declined by 13% year on year from 142 to 128. We have focused more on domestic market for sale of ferro alloys due to better realization. As a result, exports in Q1 dropped to 21,500 metric ton from 32,500 metric ton year on year.
Outlook the Chinese government has recently announced another stimulus of 69 billion yuan to tackle consumption bottlenecks and to bolster the domestic market amid global volatility. This will be the fourth batch of stimulus bringing the total to the annual target of 300 billion yuan. This should be positive for metal markets and margins should improve particularly due to fall in input prices. Fall in interest rate will enhance competitiveness and spur capital investments. Increased government spending is expected to support economic growth and credit expansion. Power demand and solar power prices remain subdued in monsoon season except for long term supply contracts which will have bearing on the performance quarter on quarter.
However, higher generation from hydropower projects in the quarter will partly offset this. Commissioning of rare hydropower project will also add to the performance of second quarter. Lower finance costs are expected to further strengthen profitability. That concludes our performance and outlook. The performance improvement measures at our IPP are clearly reflected in the results we remain confident of delivering. Let us put the floor to the yeah, okay.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a Question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participants. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of MEH from advisors.
Please proceed. Yes sir.
Unidentified Participant
Yeah, thank you so much for the opportunity. So just wanted to understand. So we have taken a resolution. So can you please specify what are the plans of the company with the debt which we are raising. Can you come again? We lost you in between.
Pankaj Sarda
Can you. Hello, can you come again please?
Unidentified Participant
Yeah, sorry. Thank you. So I wanted to understand. So we took a resolution for a thousand crore that race. So can you please explain what are. The plans of the company? Where are we planning to utilize them? And when are you planning to raise the same?
Pankaj Sarda
Yeah. See only an enabling resolution so that in case of a company with double A and above ratings are required to part finance their working capital requirement through market listed borrowings. So it is only enabling resolution. We don’t have any plan. It says to raise any fund and this resolution has been taken into the past also. But we have not raised the funds.
Unidentified Participant
Okay, that’s it from us. Thank you.
operator
Thank you. The next question is on the line of MANA from Yes, Security limited. Please proceed.
Mana
Yeah, hi. A very good evening and thank you for the opportunity. And also congratulations on the good set of numbers. So my first question is on the date of the Supreme Court case on the SKS acquisition, where are the, you know, as things stand currently?
Pankaj Sarda
So it is on as of now. It is listed for the 6th of August which is day after tomorrow.
Mana
Okay, got it. So the 6th of August is when we expect like a fine. It’s going to be a, you know, interim hearing or a final hearing. So whenever the hearing will happen. It is a final hearing only. But okay,
Pankaj Sarda
as of now it is listed for fish. That’s all that we can say.
Mana
Sure, sure. So okay, the other thing on you know, 1.8 million ton of the coal mine. So earlier we were expecting it during the first quarter. Now it’s shifted to Q2 SI26. I mean if you could just you know, enlighten the more on that.
Pankaj Sarda
No, we already have a permission for 1.68 million tons. And whenever we get during the year, you know, even if we get by December or January we will achieve the 1.8 million tons during the year. So okay, it is irrelevant whether I get in June or September. Because for the year we will be able to achieve. It’s only in the process, in the final stage of approval. So it will not affect our annual target of 1.8 million tonnes.
Mana
Got it? Got it. Sure sir. So my next question is much more for the steel business. How do you see the realization you know shaping up for Q2? Because I believe the long products is seeing realizations quite subdued. Do we see any improvements on a quarter on quarter basis?
Pankaj Sarda
So typically you know that monsoon season is a season where long products prices are always subdued. Because construction activities practically in many parts of the country gets to a hold sort of thing. So we are hoping that now with consumption pattern going forward with the monsoons getting over, the prices also will improve a lot along and the demand also will improve.
Mana
Got it. And so we continue to maintain our position right. On not taking further expansion from the steel front and you know focusing majorly on the power story for the company.
Pankaj Sarda
Yeah. As of now the expansion is focused on energy and windows only. Yes.
Mana
Got it. Got it. Sure. So I have more. I’ll join back to queue. Thank you so much for the opportunity.
operator
Thank you. The next question is from the line of Rakesh Roy from Boring amc. Please take a seat.
Rakesh Roy
Hi sir, my first question regarding again volume term. If you see the volume come on yearly basis our scale volume improved by nearby 22%. But in same time, same time our is down by 23%. Any reason of suddenly jump in volume and big drop in realization.
Pankaj Sarda
Realization is not down 23%. If still.
Rakesh Roy
Overall sir, because if. If I still. If I. Your number still number is revenue. I divided by the the volume like RNX sponge and this one those total comes nearby how much has come?
Pankaj Sarda
Hello, please refer to our presentation which has been uploaded on the stock exchanges. So if you refer to slide number nine you will get all the steel and federal alloy realization over the quarter Etc. All details are there. So you can see for yourself the realization. I mean what you are saying is not adding up. Actually just look at the slide, you will have clarity.
Rakesh Roy
Okay. Okay. Right sir, because I have taken the number from.
Pankaj Sarda
We disclose realization every quarter for all these steel products and ferroids. So look at the slide, you’ll get clarity.
Rakesh Roy
Okay. Right.
Rakesh Roy
And sir, in term of from Q1 how much is our reliability power for how much.
Rakesh Roy
Is also given on slide number. So. Yeah. 6.16.
Rakesh Roy
Okay. Right sir. And last question regarding any any outlook for the US steel for whole year and the power for whole year FY26. Any guidance.
Pankaj Sarda
So far as volumes are concerned? Steel volumes will remain more or less same slightly whatever is there on account of the efficiencies that will be there. Otherwise steel volumes are stable like F25. Yeah, yeah.
Rakesh Roy
And regarding power.
Pankaj Sarda
Also because last year it was for only for the part of India for the whole year you can assume 80% PLF, 80% CLF and. In term of margin, margin will improve or marginally ustain. This is Q1 for next 23 quarter margin. We have already given details in our opening remarks and it is subject to the market conditions. Depends on the market prices.
Rakesh Roy
Okay, so in short term if you see mostly say I can guess your margin will improve because the coke price is down. Can we assume.
Pankaj Sarda
There are multiple factors? Coke prices, I don’t know prices then steel prices. There are multiple factors but there are outlook we could say we have already covered in our opening address.
operator
Thank you. Before we take the next question we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Priyansh and investor. Please proceed.
Priyansh
Hi, Am I audible?
Priyansh
Yeah.
Priyansh
Hi. Thank you everyone for this opportunity. My first question is for regarding the hydropower project. So we know that the PPA has been terminated in this regard. Please reply to the following questions. At what rate the power was being sold under the PPA 15 project? And at what rate is the company fetching now for sale in spot market or to other customers for the sale of this power? Is the company able to sell the entire 130megawatt in spot market or some power remains unsold during after the termination of this FTP.
Also what was the reason which led to the termination of the pta? The second question is regarding the steel division. So it has been exceedingly well doing well in the past quarter.
Pankaj Sarda
You can one by one, one by one questions. Little better.
Priyansh
Okay. Okay. Yeah. Hydropower.
Pankaj Sarda
Exactly. Yes. So that will respond first.
Priyansh
Okay.
Pankaj Sarda
We had entered into power package agreement with cost plus tariff. So our tariff was going down year on year as the interest burden was going down. As our cost was going down, our Terry was also going down and the transmission cost was in our own on our head. So revenue was going down year on year. That’s why we decided to terminate this agreement and we are selling power in the open market. We are able to sell 100% of the power and annual average of the realization for the timing may remain at the levels where what we were getting previously.
But yes, in longer term we will be getting the benefit of the increasing rates of power over a longer period of time.
Priyansh
Okay. And do we have any estimate on the average rate that is selling per unit?
Pankaj Sarda
Average? It depends. Season to season it will vary but it should be somewhere in the range of 5 rupees plus minus. It should be understood.
Priyansh
Okay, got it. I’ll move on to my next question then. Do we know that the steel division has been doing exceedingly well in the first quarter 20 by 26 since the revenue increased by 10% Q of you but the profit jumped by 100% Q of you. So my question is, is this jump in profitability of the seal division sustainable in the current quarter or next or even next quarter? Or was there any one off item in the June quarter which led to this really high jump in profit?
Pankaj Sarda
No, there was no one off item in the seal division. Yes, volume has also gone up as compared to the march. In the March there were certain shutdowns in the plant. So steel division there is no oneof item. And we should be able to sustain and improve from here.
Priyansh
So we’ll be seeing a similar growth is what your understand. Okay, that’s it. That’s it for my end. Thank you so much for your question.
operator
Thank you. Participants who wish to ask a question may please press Karan 1 at this time. The next question is from the line of Gautam Jain from GCJ Financials. Please proceed.
Gautam Jain
Yeah, congratulations for a solid set of numbers. Can I get the breakup of your power business segment revenue which is like 939 cr. Can I get the breakup of that into captive IP and hydro?
Pankaj Sarda
He can provide offline may not be available immediately but that will be available. That should not be a problem.
Gautam Jain
Okay. Okay. Is it like okay in the hydro business? Hydro organization like that you first quarter and second quarter are better than the last two quarters.
Pankaj Sarda
Your voice is creaking. Always in hydro second quarter is always better than the last quarter.
Gautam Jain
The first two quarters are better than the last two quarter. On the financial right.
Pankaj Sarda
Not always. First quarter may not always be better than the third quarter. Generally second quarter is the peak generation because of the Remy season. Third party is a little lesser than that. And first depends upon the incoming of the monsoon. If it is early monsoon we get good ramps. And sometimes if monsoon comes in June then revenues may be on lower side.
Gautam Jain
Okay. Okay. And the last question is you said about Chinese system that will be like good for the steel pricing. So are we seeing better price in Q? 2 versus Q1. Maniji. Yeah.
Pankaj Sarda
No, no. Chinese stimulus has just come around right now. We’ve just recently seen that. You know, the Chinese stimulus is there. We’ll have to wait and see. But I’m sure that once the monsoons are over we’ll see better pricing and better demand as well.
Gautam Jain
Okay. Okay. May I ask one more question?
Pankaj Sarda
Sure.
Gautam Jain
Yeah. So with regard to your gross date and cash level which is around 2700. Crore of gross debt and 1700 crore of cash in hand. So what are the repayment schedule, if I may know?
Pankaj Sarda
No. Thousand crore is the loan and 1700 crore is the case. Both are opposite. It is not. We cannot be combined.
Gautam Jain
No, no. I know. I. I’m saying growth rate is 2700.Crore and cash circle is 1700 crores. So net deb comes 2000 cr. I’m asking is what is the repayment schedule on the gross date side?
Pankaj Sarda
Repayment is hardly for the current year. It is only 200 crores for the current year.
Gautam Jain
So what we’ll do with the cash in hand because that is substantially rising. Because of our cash flow is very strong.
Pankaj Sarda
Opportunity. Right. Opportunity. And definitely our growth plans are going on. We. We are spending about 502,000 crores a year on the expansion projects in different segments. Whether it is gold mines, hydropower project and other projects.
Gautam Jain
So may I know total capex for next three years including current year.
Pankaj Sarda
Every year we have been spending in the range of 5002000 crores a year as of what we have planned for next two, three years. Okay.
Gautam Jain
So that will continue even from 20, 26, 27, 28.
Pankaj Sarda
Right. We have already planned. This is what we have already planned. And there may be new opportunities also.
Gautam Jain
Okay. Okay. Great. Thank you so much. You are doing very, very good. Thank you. You printed a lot of wealth and you’ll continue. All the best. Thank you.
Pankaj Sarda
Thank you.
operator
Thank you. To ask a question, please let start in one. Now the next question is from the line of Rajesh Bhandari from Nakoda engineers. Please.
Rajesh Bhandari
Sir, good afternoon. Is more on power and mining. So mining we will remain only in India or we will explore on outside India also. And rare earth also. Or power. So additional auxiliaries already. Do we have any plans for expansion of that part? 600 additional. So the infrastructure is there for 1200 megawatt?
Pankaj Sarda
Yes, sir. Definitely will be going for environment clearances for another 800 megawatt in future. That much land and everything in the infrastructure is there. Yeah. And what was your another question?
Rajesh Bhandari
Sir, it’s more on power and mining because.
Pankaj Sarda
Because the 800 megawatt itself will take around 8,000 crores of cape. This is the indication. And this will turn the small cap into a large cap company. Because steel or ferro alloy power is the best thing. And mining also.
Rajesh Bhandari
So we have an operating mine in Indonesia. Expansion planning and God willingly we’ll try to achieve 1 million ton in near future in that mine. Coal mine. We are open for any opportunity.
Pankaj Sarda
Huh?
Rajesh Bhandari
Thank you. Thank you sir.
Pankaj Sarda
Thank you very much.
operator
The next question is from the line of Priyansh, an individual investor. Please proceed.
Priyansh
Yeah, can you hear me?
Pankaj Sarda
Yes sir.
Priyansh
Yeah, my question again pertains to the Sikkim hydropower plant. So what was the average generation of power in the June quarter? And what was the power generation in the July month?
Pankaj Sarda
Just a moment. Yeah. So June quarter. The numbers that you see in the investor presentation for hydro that is largely chronic.
Priyansh
Okay.
Pankaj Sarda
This is. We had a 100 million units. 100 million units.
Priyansh
Okay. And in the July month.
Pankaj Sarda
July we shall have to take immediately we don’t have at hand.
Pankaj Sarda
Okay. Okay. Maybe I can reach out later to the team then. Understood. Okay. That’s it. Thank you.
operator
Thank you. The next question is from the line of Vedant Sarna from Nirmal bank pms. Please proceed.
Vedant
Thank you for the opportunity. I wanted to know that what kind of ROC we are targeting for the CAPEX clients and for overall as a company.
Pankaj Sarda
A return on capital employed will differ project to project. But there are certain projects which are related with integration. There are new projects, there are multiple variables and for different projects. Because if you go for hydropower projects ROC expectation is different because there you have consistency in the profitability. Then if you are going for the steel project then ROC expectation will be different. So specifying a specific. This is my ROCE expectation project to project and looking to the market condition and ROCE also you have to see only in the terms key whether market is in the upward mood or downward mood.
In case of steel sector when you enter into the. When the market is already down ROC immediately if you compare that means not be very good. So ROC is totally depends upon the market conditions. But definitely it should be much better than our weighted average cost of the capital. That is what is the criteria?
Pankaj Sarda
Yes sir. Like we don’t have any just to add to that. See we like. Like Mr. Jain already explained different projects will have different decision making parameters. But I would suggest that while we don’t want to give a rose a number but you can go by our past actions. Okay. The historical numbers are there for you to see. So normally that is the decision making that we are applying. You can go by the past action. We don’t want to put a number.
Vedant
To it right now. You know like we don’t have any plans for steel expansion currently and you better told any kind of opportunity if you see you would like to grab that. So like if you find any, any kind of mine or anything, any project you are wishing so some kind of number set if you can give like you are growing a company, you would be continuously doing capex.
Pankaj Sarda
It seems there have been multiple apexes that we have done in the last few years itself. Okay. That you would have seen whether it was power, it was the hydropower project, etc. So there you can take the thought process. You can understand the thought process. We don’t want to put a number because that becomes restrictive and that is not the only decision making factor. It is an important decision making factor but not the only one.
Vedant
Okay, fine.
operator
Thank you. The next question is for the line of outfit SH from Stallion Asset. Please proceed.
Unidentified Participant
Hello. Yes you are. Yeah, just congratulations on very great set of numbers. Great acquisition in terms of SKS power. I just wanted to understand the power that we generated in the quarter 1 quarter 1 by realization was closer to 6.16 per unit. So how should we think about this number? I think we were writing around 5 rupees per unit earlier on. Maybe in the second or the third quarter. How should we look at this number going ahead? This is a sustainable number or this is a number just for quarter one and it just drags down and brings the total annual average to 5 rupees going ahead.
Pankaj Sarda
No, this what we earned in the first quarter may not be the right number for the whole year. Definitely. Generally first quarter is always better because of the summer seasons. But in addition to that there are multiple variables which decide the power pricing. So second quarter always remains abdute third quarter and all other things. Other quarter pricing depends upon the demand supply, then climatic conditions, how long the range go on. There are multiple variables. But yes, first quarter is definitely a better for the thermal power pricing which may not be true for the whole year.
Unidentified Participant
How do we look at. Because it’s already operating in 90% lower factors. How should we think about SKS power numbers for F4FY26 and since we already got a new hydropower plant operation from November or December, as we look at the whole of the power segment in terms of EBITDA for F26.
Pankaj Sarda
It’S already told so far as capacity utilization Is concerned, annual average should be somewhere in the range of 80% what we gave the guidance. All right. Lastly think about how. You can expect 30% PLF and more somewhere in there.
Unidentified Participant
How should we think about the absolute ebitda number for FY26? Because it’s just power plant, we don’t.
Pankaj Sarda
Give any specific EBITDA numbers. Last time also we had stated in general our power generation from the thermal power project should be in the range of 400 crore plus minus units. And EBITDA will depend upon the electricity pricing which is varies in the range. And EBITDA may range somewhere about 2 rupees plus minus 50 peso. And what kind of power generation terms of unit should be for hydropower? Hydropower 167 megawatt is running 40% of the cordless sector. 148 megawatts 166. Now one more started.
Unidentified Participant
Okay. How much would be in terms of units?
Pankaj Sarda
167M and you take around 40 to 45% maybe of PLF, you know.
Unidentified Participant
Got it.
Pankaj Sarda
Maybe about 60 crore you can assume.
Unidentified Participant
Got it.
Pankaj Sarda
But then this is all depending on the range, you know. So it is. See the right way to look at it I would say is your thermal will be very strong in the first quarter. Your hydro will be very strong in the second quarter and the other two quarters, I mean third quarter there is some hydro and thermal will be okay. So I mean it will taper off. The third and fourth quarter may be a little weakness in hydro, you know, because of the rains not being there. So that’s the right way to look at it.
The second quarter we should get balance support from the hydro power generation while thermal might be a little weak.
Unidentified Participant
Got it. So broadly what we have to see is in the annually what we have to see is probably going to be at about 450 crore odd units combined hydro and thermal. Our EBITDA per unit should be 2 rupees plus or minus 50 pesos. That comes to about let’s say closer to thousand crore plus EBITDA for the power business as a segment. That’s how we should think about it.
Pankaj Sarda
I think that should be the reasonable expectation depends upon the market condition.
Unidentified Participant
Got it. Perfect. So we got it. Thank you so much. Thank you.
operator
Thank you. The next question is from the line of Mana Gogia from yes Securities Ltd. Please proceed.
Manav Gogia
Yeah. Hi. Thank you so much for the opportunity. So one question much more on the numbers front. It was for hydropower. Would you be able to provide the average selling price per unit for the quarter.
Pankaj Sarda
We don’t have immediately but it should be somewhere in the range of 5 rupees.
Manav Gogia
Okay. More or less 5 rupees on an average. Got it, Got it. Sorry, I could not get you five rupees plus. Five rupees plus. Okay, got it. Correct. Sure sir. So second question would be on the power segment when like would you be able to specify some ballpark timeline of like know doubling the SK power capacity?
Pankaj Sarda
It’s a. Because it’s a long drawn process of approvals, we have to go for all the environmental clearances and those approvals. So giving any timelines at this stage will be too early.
Manav Gogia
Got it, Got it. And so currently, you know, we are doing the J Palma expansion from 1.68 to 1.8 and I believe the company’s end goal would be to make sure that that mine is particularly captive for your SK power. So how do we see those expansions going ahead? Post 1.8 million for FY26 and then if you could give some breakdown.
Pankaj Sarda
So post that we are evaluating. I think so we’ll take it again. It totally depends on the environment clearances in place. We’ll try to expand it to 3 million 10 plus.
Manav Gogia
And we’ll be applying for fresh EC for the sixpence.
Pankaj Sarda
Yeah, fresh EC has to be applied. So after all the process will start after we receive 1.8 million ton environment clearance, all the approvals and everything for fresh ECS will be applied. So more or less we can assume my 18 to 24 month period to, you know, have things all on hand. Max can be a fair assumption.
Manav Gogia
Sure, sure, sure. And so one question on if you could quantify the landed costs for imported coal for the steel operations, just in case you have it handy.
Pankaj Sarda
So. So RB2 and RB3 coal landed to Raipur and the freight also changes from time to time from Vizag to Raipur. So somewhere around 8,000 rupees per ton to 10,000 rupees per ton.
Manav Gogia
Sure. So we have seen some benefits on the cost front due to the prices. Going down in the international market. So they are yet to be accrued, probably in the next quarter.
Pankaj Sarda
No, we have been trying to avoid. Imported coal as much as possible as the domestic coal is also available. And our entire aim of the group is to ensure that we utilize maximum coal from our own mines. And only the shortfall is what we are trying to source from international markets and that too many times we get good quality coal in auction from the Indian, you know, mines. So we are trying to maximize that strategy. More rather than depending upon imports.
Manav Gogia
Got it, Got it. So one. One last question I wanted to have. You know on basically currently the SKF power we are selling it on ivx, right? If I’m not wrong.
Pankaj Sarda
No, we have a mix. We are selling part of the quantity but generally it is short term, not on daily basis. We have bilateral context for short term, medium term, both way.
Manav Gogia
Got it. Okay. And do we plan to have the PPs for the SK in the upcoming months?
Pankaj Sarda
But there are some medium term PPs, there are certain short term PPS and the part of small quantity sometimes we sell even on the IEX on daily basis also so depends there is a. This is a mix of a mixed basket of the pph.
Manish Sethi
Got it. So my main agenda was to just realize that you know we currently had a realization of around about 6.16 rupees per unit. So we can expect if more PPAs are in place this realization number to probably go down a bit.
Pankaj Sarda
Oh see it is. It is like this on the PPA our strategy thought process is clear. We had outlined it in the last call also that over. I mean we had the idea is to enter into a stable PPA long term ppa. You know so maybe tie up a significant part of the capacity in long term PPA and the balance take the benefit of the market forces. So that is the broad idea we are trying. We are in the process of executing that.
Manish Sethi
Sure, sure. Thank you so much for that. That was very helpful. Thank you so much and all the very best. Thank you.
operator
Thank you. The next question is from the line of Rakesh Roy from Boring amc. Please proceed.
Rakesh Roy
Hi sir, so one question regarding your margin front as you mentioned you are nearby 76% of revenue comes if it has to come from sector and same with 3 business minus this EBITDA number from your power revenue our steel EBITDA will get what you see is a 18% sir. So what is your outlook and how is the Q4 Q1 FY25 margin for steel business? Q4 Q1 FI25. Yeah, for this quarter our steel margin is near by 18 as per your data. So if you won FR25 how much our steel margin. Q&FY25. Yeah. We’Ll get it on the exchanges. Over margin because it include hydro also sir in Q1FY25. So I’m saying the only steel margin.
Pankaj Sarda
No, no we disclose segment wise a bit. You know you can refer to our results whatever you want to.
Rakesh Roy
Exactly sir, I’m asking. Last year it was definitely much Better than as compared to the fourth quarter and first quarter 26. First quarter FY25 was better than current year. But specific depreciation. What.
Pankaj Sarda
Sorry, what is your question? Can you repeat your question first quarter.
Rakesh Roy
My question. My question is this quarter our steel margin is 18%. Okay. Same last year Q1. How much are our steam margins? Is it that number?
Pankaj Sarda
If you go to. If you go to slide number 6 of the presentation you will get Q1 FY25 a total a bit broken up into the various segments.
Rakesh Roy
Exactly sir. But this is. This is the EBIT number. I asking all the EBITDA number sir.
Pankaj Sarda
That you can write to will provide you. We don’t have.
Rakesh Roy
Right. Okay. Sir and sir, same thing. Can you assume this number will improve from here onward 18%.
Pankaj Sarda
It should. I mean there are a lot of discussion already part of it. We have given enough. Okay.
Rakesh Roy
And sir, any chance August or September you will get any price hike because as you say size will increase or 5 will rise after monsoon. Any. Any idea how much you are going to take and how is the market condition that time you have any. Can you give the light on this?
Pankaj Sarda
Hello. Hello. These are hypothetical questions. I don’t think we will be able to give anything on that. Whatever outlook we could say we already given in our opening address. Rest depends upon the market conditions.
operator
May we request you to join the question queue. Thank you. The next question is on the line of Chess Gandhi Gandhi securities Private Limited. Please proceed.
Unidentified Participant
Congratulations on good set of numbers. I have two questions. The first one is what is our average realization for SKS in July?
Pankaj Sarda
July. We could be able. We’ll be able to provide you off the line. We don’t have in the hand immediately. Okay, but is it five five plus or we should. We should think about. It. Should be in the range of 5 rupees.
Unidentified Participant
Okay. And another question is apart from whatever commission.
Pankaj Sarda
Plus only it will be 5 plus only.
Unidentified Participant
Okay. And my second question is apart from whatever capacity we have shown which is commission for power. Is there any addition additional capacity that we can think about getting commissioned this year?
Pankaj Sarda
No. There is no other capacity which is getting commissioned this year except 50 megawatt solar power plant that will get commissioned during current year.
Unidentified Participant
That will be for captive consumption, right?
Pankaj Sarda
Yes, that will be for captive consumption.
Unidentified Participant
That’s all from my good luck for future.
Pankaj Sarda
25 megawatt already commissioned in July.
Unidentified Participant
Yeah. Yeah. Thank you. Thank you very much.
operator
Thank you. The next question is from the line of me from advisors.
Unidentified Participant
Yeah. Hi sir. Thank you for the follow up. So wanted to understand. So we have a hearing business in the next two days and we are planning to process for the SAS as well. So can we assume that the thousand core of that resolution can be used here as for the CapEx as well?
Pankaj Sarda
Yeah. Even if we start getting approvals at least for next one and after two years there won’t be any capex on that particular SKS project. So this resolution, what we have taken will not be applicable for the SKS part project.
Unidentified Participant
Okay. So second question was did we see any price drop for the code which. We are acquiring for our SK power. Plant or they have been flatted.
Pankaj Sarda
We are getting coal at the notified price.
Unidentified Participant
Okay. So no change in the acquisition cost, right?
Pankaj Sarda
There is no. Yeah.
Unidentified Participant
Oh, okay. Understood. Understood. Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants that you May Press Star N1 to ask a question. Participants who wish to ask a question may please press star N1 at this time. The next question is from the line of Rajesh Bhandari from Nakoda and Engineers. Please proceed.
Rajesh Bhandari
Thanks for giving me chance. Once again.
Pankaj Sarda
That is better because many most of the companies they give consolidated result. But. Normally people see only on the. So most of the companies they give consolidated. You just take request.
Rajesh Bhandari
Thank you sir. Thank you.
operator
Thank you. Participants who wish to ask a question may Please press star n1 at this time. As there are no further questions from the participants. I now hand the conference over to the management for the closing comments. Over to you, sir.
Pankaj Sarda
Yeah. Thank you. The performance improvement measures at our IPP are clearly reflected in the results of the quarter. 1. We remain confident of delivering record results for the financial year 26. Despite sectoral challenges in the steel, our strategy of reinvesting surplus case into diversified future ready process continues. The company continues to reinvest surplus funds in diverse projects to ensure long term sustainable growth. FY26 will benefit from full year operations of the IPP power plant, increased coal production and the commissioning of three new projects which are 25 megawatt Rahe hydropower plant which commissioned in July 2025 mineral wool plant and 50 megawatt captive solar power plant.
Thank you for joining us today. Please feel free to reach out to us or our investor relations team with any further queries. Thank you.
operator
Thank you on behalf of Sarda Energy and Minerals limited. That concludes this content. Thank you for joining us. And you may now disconnect your lines.