Any current/future new fundraising through debt or equity?

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 pre

Any current/future capex/capital investment/strategic investment?

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 a

Future growth expectations in sales/revenue/volumes?

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

Future growth expectations in earnings/operating earnings/profits/EPS?

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 s

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Sarda Energy & Minerals LtdQ2 FY25Ferrous Metals

Sarda Energy & Minerals Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹518P/E: 18.3Market Cap: ₹19.2K CrSector: Ferrous Metals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→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).

Margin guidance

Category 3

→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.

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Fundraise plans

→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**.

Order book

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.

Capex plans

Yes

→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.

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