Sarda Energy & Minerals Ltd Q2 FY26 Earnings Analysis

- Steel volumes are expected to remain more or less stable with slight improvements due to efficiencies; no significant volume growth planned (Page 7). - Power segment generation is projected at around 400 crore+ units with an 80% Plant Load Factor (PLF) for FY '26, indicating stable volumes (Page 12). - Hydropower generation increased by 37% YoY due to early monsoon, with new projects (e.g., Rehar hydropower) expected to enhance second-quarter performance (Page 3). - The company continues to spend INR 500-1,000 crores annually on expansion projects in power, mining, and other segments with potential new opportunities (Page 9). - No immediate expansion plans in steel and ferro alloys, focus is more on power and mining (Page 10). - Infrastructure exists to expand thermal power capacity up to 1,200 MW with approvals in progress for further 800 MW (Page 10). - Strategic focus on long-term PPAs plus market sales to balance stable revenue and market-driven gains (Page 15).

- Steel division volumes expected to remain stable with possible efficiency-driven improvements; steel margin sustainable or likely to improve from current 18% EBITDA margin seen in Q1 FY '26. - Power segment EBITDA dependent on market conditions; annual average plant load factor guidance at ~80%. - Hydropower generation expected to contribute more in Q2 due to monsoon rains, helping offset subdued solar/thermal power prices during monsoon. - SKS Power plant operating at ~90% PLF; power realizations for FY '26 expected around INR5 per unit (± INR0.50), with Q1 price of INR6.16 per unit being a seasonal peak. - Improved profitability driven by better energy prices, higher hydropower generation, and lower finance costs. - No specific numeric guidance given, but outlook indicates sustaining or improving earnings driven by operational efficiencies, market price recovery post-monsoon, and increasing energy business share. - Focus on long-term PPAs for stable power pricing and opportunistic balance via spot market sales. - Capex of INR 500-1,000 crores annually planned to drive growth in coal mining, hydropower, and other segments.

- No additional capacity, except a 50 MW captive solar power plant to be commissioned this year. - Ongoing annual capex plans of INR 500 - 1,000 crores per year for next 2-3 years, spanning coal mines, hydropower, and other projects. - Infrastructure ready for expanding power capacity by additional 800 MW (beyond current 600 MW), with plans to pursue environmental clearances. - No immediate capex planned for the SKS power project for next 1.5 to 2 years; current INR 1,000 crore debt resolution not applicable for SKS capex. - New small hydropower projects and 25 MW Kotaiveera hydropower project are in approval stages; work expected to start soon. - A 30 MW TG set replacement underway, expected operational by mid-FY27. - Open to mining expansion opportunities, including coal mine in Indonesia (targeting 1 million tons), and potential rare earth prospects. - No plans for steel expansion currently; focus remains more on power and mining sectors.

- The company currently has **no immediate plans for fundraising** through debt or equity. - An **enabling resolution to raise up to INR 1,000 crores of debt** has been taken, which is a routine measure for companies with AA and above ratings to finance working capital if needed. - This resolution has been approved in the past but **no actual funds have been raised** so far. - The resolution is **valid only for one year** and is primarily an enabling resolution, not a firm plan for debt raising. - Any new capex related to SKS project will not utilize this INR 1,000 crore debt resolution. - The company prefers to raise funds only if the right opportunity arises, with **no current fundraise underway or planned**.

The transcript from the Q1 FY26 earnings call for Sarda Energy & Minerals Limited does not explicitly mention the current or expected order book or pending orders in detail. Key relevant points are: - The company is focused on growth, primarily in the energy and minerals segments rather than steel expansion. - Ongoing investments include INR500 to INR1,000 crores annually over the next 2-3 years on expansion projects including coal mines and hydropower. - No specific references to orderbook or pending orders volumes or values are mentioned. - They have some project approvals pending (25 MW hydropower project, captive 50 MW solar plant commissioning in FY26). - SKS Power plant is operational, with existing PPAs and plans to increase long-term PPAs. Hence, explicit data on the size/value of order book or pending orders is not disclosed in this transcript.