Sarda Energy rallies after Q1 profit surges 120% YoY

Sarda Energy & Minerals soared 14.75% to Rs 504.05 after the company delivered a blowout performance in the June quarter.

The company's consolidated net profit soared 120% year-on-year (YoY) to Rs 437 crore, compared to Rs 198 crore in the same quarter last year. The sequential jump was even more striking, with profit after tax (PAT) rising 335% from Rs 100 crore in Q4FY25.

Riding on strong operational momentum, revenue from operations stood at Rs 1,633 crore in Q1FY26, up 76% YoY and 32% quarter-on-quarter (QoQ) from Rs 926 crore and Rs 1,239 crore respectively.

EBITDA for the quarter more than doubled YoY to Rs 697 crore, marking a robust 108% increase from Rs 336 crore in Q1FY25. On a sequential basis, EBITDA surged 120% from Rs 317 crore in the previous quarter.

Cash profit, a key indicator of a companys internal accrual strength, leapt 161% YoY to Rs 642 crore and 154% QoQ.

The energy segment emerged as the star of the quarter, contributing Rs 800 crore in revenue, accounting for 47% of consolidated revenue, and Rs 467 crore in EBITDA, which made up a hefty 67% of the companys total EBITDA.

Sarda's iron ore pellet sales rose 22% QoQ and 9% YoY to 140,000 metric tonnes. Wire rod volumes jumped 80% sequentially and 5% YoY, while steel billet volumes, though lower by 5% QoQ, surged 120% YoY to 11,000 MT.

Hydro power generation was a standout performer, growing 434% QoQ and 38% YoY to 112 million kWh. Captive thermal power also posted a 77% QoQ and 36% YoY increase, reaching 33 million kWh. Independent power production (IPP) stood at 1,067 million kWh, up 13% sequentially. However, the corresponding figure for Q1FY25 was not disclosed.

Notably, domestic coal sales spiked 440% to 27,000 MT from just 5,000 MT in Q4FY25, though they were 89% lower than the 234,000 MT reported in Q1FY25.

Sponge iron sales stood at 32,000 MT in Q1FY26, reflecting a 1% QoQ decline and 9% YoY drop. Ferro alloy sales came in at 48,000 MT, up 4% QoQ and up 5% YoY.

Sarda Energy & Minerals is an energy and minerals company with operational iron ore and coal mines in Chhattisgarh and Thermal and Hydropower generation plants in different locations across India, with a growing portfolio of mineral and energy assets. It has a total operational Thermal Power capacity of 761.50 MW and Hydropower capacity of 167 MW. It is also an integrated steel producer of long steel products having steel manufacturing facility at Raipur, Chhattisgarh and a leading producer and exporter of ferro alloys with manufacturing facilities at Raipur & Vizag.

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