Sarda Energy & Minerals Limited (BSE: 504614; NSE: SARDAEN) reported a resilient set of results for the third quarter of fiscal 2026, with its strategic shift toward an “Energy-plus-Minerals” model driving a significant jump in nine-month profitability despite seasonal maintenance headwinds.
The Raipur-based company saw its consolidated Profit After Tax (PAT) for the first nine months of FY26 surge 59% year-on-year to INR 954 crore, up from INR 602 crore in the previous year. For the quarter ended Dec. 31, 2025, consolidated PAT stood at INR 190 crore, a marginal 5% decline from INR 200 crore a year earlier, primarily due to a planned maintenance shutdown at its thermal power operations.
Energy Segment Emerges as Core Driver
The company’s energy vertical has firmly established itself as the primary earnings engine, now contributing more than two-thirds of consolidated EBITDA.
- Thermal Power: The SKS Power (IPP Binjkot) unit operated at an 81% Plant Load Factor (PLF). However, Q3 generation was impacted by the scheduled maintenance of one 300 MW turbine.
- Expansion: SEML signed two new Power Purchase Agreements (PPAs) during the quarter, enhancing medium-term revenue visibility.
- Renewables: A 50 MW captive solar project in Chhattisgarh is currently under installation and is expected to be operational in the first quarter of FY27.
Metals and Mining Operations
While the energy segment led profitability, the company’s legacy metals business showed volume resilience.
- Production Trends: Ferro Alloys production rose 34% year-on-year to 54,000 MT in Q3. Conversely, steel billet and wire rod production fell 22% and 29% respectively, hampered by the temporary shutdown of a 30 MW captive power unit at the Raipur plant for replacement.
- Mining: Operations remained steady, with domestic coal production reaching 466,000 MT in Q3, up 9% YoY, ensuring fuel security for captive power requirements.
Stock Performance
Shares of Sarda Energy & Minerals were trading at INR 528.95 as of Feb. 6, 2026, giving the company a market capitalization of INR 18,640 crore. The company has maintained a consistent dividend track record, reflecting its strong internal cash generation.
Financial Prudence and Outlook
The company’s diversified business model provided stability amid seasonal weakness and pricing volatility in the metals sector.
The company maintains a strong balance sheet with a liquidity position of approximately INR 2,300 crore . Its credit profile was recently reaffirmed by CRISIL at AA-/Positive/A1+.
We remain focused on disciplined capital allocation and strengthening our energy mix, pointing to the ongoing ramp-up of thermal and hydro assets as key to future growth.