Q1 2027 Sarda Energy & Minerals Ltd Earnings Call Transcript
Key Points
- Sarda Energy & Minerals Ltd (BOM:504614) reported its highest-ever quarterly EBITDA and PAT in Q1 FY27, with EBITDA at Rs 762 crores and PAT at Rs 478 crores, a 9.4% YoY growth.
- The company has secured medium and long-term power supply agreements for over 380 MW out of its 710 MW saleable power capacity, significantly improving revenue visibility and earnings stability.
- Sarda Energy & Minerals Ltd (BOM:504614) is now net debt-free on both standalone and consolidated bases, with healthy liquidity of more than Rs 2,500 crores as of 30 June 2026.
- The 113 MW Sikkim hydropower plant, which was shut due to a transmission tower collapse, has resumed full operations with no material restoration costs, as the expenses are largely covered by insurance.
- The company's expansion pipeline is on track, including the Shahpur West coal mine targeted for commissioning before the end of FY27 and the 30 MW captive power plant ready for trial operations, which is expected to boost steel production.
- July power prices on the IEX have moved up to Rs 5 per unit from Rs 4.19 per unit YoY, indicating a favorable pricing environment for the company's power business.
- The Q1 FY27 net profit included a one-time net benefit of Rs 110 crores, meaning the underlying operational performance was lower than the headline numbers suggest.
- Production in the steel and ferroalloy segments declined YoY due to planned outages, including the replacement of a 30 MW captive power plant unit at Raipur and a 23-day scheduled maintenance at the Vizag captive power plant.
- Generation at small hydropower plants was adversely affected by delayed monsoon conditions during Q1, leading to a shortfall in water availability.
- The commissioning of the 50 MW captive solar project has been delayed due to right-of-way issues on the transmission line, with the new expected timeline pushed to before the end of the next quarter.
- The mineral wool project is currently operating at only 60-65% capacity and is not yet profitable, with production ramp-up hindered by imported equipment stuck due to West Asia-related supply chain disruptions.
- Steel prices remained range-bound with a mild negative bias during the quarter, and the company faces ongoing risks from elevated oil prices and geopolitical tensions that could impact input costs and demand.
Ladies and Gentlemen, Good year and welcome to Desarda Energy and Minerals Limited Q1 FY27 Earnings Conference Call. ( Operators Instructions )
Please note that this conference is being recorded.
I now have the. Over to Mr. Parth Chauhan from AddFactor PR.
Thank you and over to you sir.
Good evening everyone and thank you for joining us today to discuss the Q1 FY27 business performance of Sarda Energy and Minerals Limited.
We have with us Mr. Pankaj Sarda, Managing Director, Mr. Manish Sarda, Deputy Managing Director, Mr. Padam Kumar Jain, Director and Chief Financial Officer and Mr. Nilay Joshi, Executive Director. Before we proceed with this call, I would like to mention that some of the statements made in this call may be forward-looking in nature and may involve risks and uncertainties that are difficult to predict.
The company undertakes no obligation to update any forward-looking statement to reflect developments that occur after
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