Sarda Energy Targets Doubling EBITDA by FY30; Q4 Profit Jumps 53%

Speaking during the earnings call on Monday, the management said FY26 marked a strategic inflection point for the company, with EBITDA crossing the Rs 2,000 crore mark for the first time, driven by increased contribution from the energy segment. The company said in its analyst presentation that it is working towards doubling its EBITDA by FY30.

According to the management, over the last five years Sarda Energy has transformed itself from a mid-sized cyclical commodity-linked metals business into a more diversified and integrated energy and mining company.

The company said that in FY21, earnings were largely driven by steel and ferro alloy cycles, with profitability exposed to volatility in commodity prices and raw material costs. Since then, it has diversified through investments across thermal power, hydro power and coal mining.

Key milestones in this transition include the acquisition and integration of SKS Power’s 2×300 MW thermal power assets, operationalisation of the 113 MW hydro power project in Sikkim and the commencement and scale-up of coal mining operations at Gare Palma IV/7.

“This transformation is reflected in our financial and operating performance. Over FY21 to FY26, revenue grew at a CAGR of 21 percent to approximately Rs 5,928 crore, EBITDA tripled at a CAGR of 25 percent to Rs 2,025 crore, while profit after tax also recorded a threefold increase at a CAGR of 24 percent to Rs 1,109 crore,” the management said.

During the same period, the company’s energy capacity increased nearly fivefold to 929 MW. The management added that supported by strong liquidity, an improved credit profile and a net debt-free balance sheet, Sarda Energy remains well positioned for long-term sustainable value creation.

The company also reported its highest-ever thermal and hydro power generation in FY26, along with record production across iron ore pellets, sponge iron, HB wire and coal mining operations. SEML operates across power generation, mining, steel and ferro alloys.