Concall Transcript

An ISO 9001, ISO 14001 & ISO 45001 Certified Company SARDA ENERGY & MINERALS LTD. 7th November 2026 BSE Ltd National Stock Exchange of India Ltd. The Department of Corporate Services Exchange Plaza, Bandra Kurla Complex Phiroze Jeejeebhoy Towers Bandra (E), Mumbai – 400051 Dalal Street – Mumbai 400 001 Fax. No: 022-26598237/38, 022-26598347/48 Security Code No. :504614 Symbol: SARDAEN Series: EQ Dear Sir, Sub: Transcript of the earnings call conducted on 2nd November 2026 Please find enclosed herewith the transcript of the Q2 & H1 FY 27 Earnings Conference Call conducted on 2nd November 2026. This is for your information and records. This information is being hosted on the Company’s website - www.seml.co.in. Thanking you, Yours faithfully, For Sarda Energy & Minerals Ltd. Authorised Signatory Encl: As above “Sarda Energy & Minerals Limited Q2 FY27 Earnings Call” November 02, 2026 MANAGEMENT: MR. PANKAJ SARDA –MANAGING DIRECTOR – SARDA ENERGY & MINERALS LIMITED MR. PADAM KUMAR JAIN – DIRECTOR AND CHIEF FINANCIAL OFFICER – SARDA ENERGY & MINERALS LIMITED MR. MANISH SARDA – DEPUTY CHAIRMAN – SARDA METALS & ALLOYS LIMITED MR. NILAY JOSHI – EXECUTIVE DIRECTOR – SARDA ENERGY & MINERALS LIMITED MODERATOR: MR. RAVI SODAH – ELARA SECURITIES INDIA PRIVATE LIMITED Page 1 of 15 Sarda Energy & Minerals Limited November 02, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Sarda Energy & Minerals Limited Q2 FY27 Earnings Call hosted by Elara Securities India Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*”, then “0” on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ravi Sodah. Thank you, and over to you, sir. Ravi Sodah: Yes. Good evening. On behalf of Elara Capital, I welcome you to the Q2 FY27 results call for Sarda Energy & Minerals Limited. From Sarda Energy, we have with us Mr. Pankaj Sarda, Managing Director; Manish Sarda, Deputy Managing Director; Padam Kumar Jain, Director and CFO; and Nilay Joshi, Executive Director. I now hand over the conference to Mr. Pankaj Sarda for his opening remarks. Thank you. Pankaj Sarda: Thank you, Mr. Ravi. Good evening, friends, and thank you for joining us on our Q2 and H1 FY27 earnings call. I hope you have had an opportunity to review the financial results and investor presentation available on the stock exchanges and our company website. H1 FY27 marked the milestone for SEML, with the highest ever half yearly EBITDA of INR1,326 crores, up approximately 4% year-on-year and PAT of INR799 crores, up approximately 5%. Total income stood at INR3,221 crores, while cash profit increased to INR1,225 crores. During Q2 FY27, we recalibrated captive power operations in line with market conditions, enabling us to optimize our portfolio mix. The flexibility supported EBITDA of INR564 crores and PAT of INR320 crores, on total income of INR1,505 crores. The performance despite planned maintenance shutdowns and operational outages reflects the strength of our underlying businesses and the benefits of our integrated operating model. Let me now take you through our operational highlights. A key operational highlight this quarter was our entry into manganese ore mining, securing preferred bidder status for the Avagudem manganese block in Andhra Pradesh. Page 2 of 15 Sarda Energy & Minerals Limited November 02, 2026 Operations are expected to commence in approximately 12 to 14 months. Once operational, the mine will strengthen backward integration, enhance raw material security, and improve cost competitiveness, supporting higher profitability in our ferro alloys business. We are now focused on securing the necessary approvals to restart mining operations. On the production front, we achieved our highest ever half yearly pellet output of 4,29,059 tons at Raipur. At Raipur, the replaced 3- megawatt turbogenerator commenced operations in August 2026 and is operating smoothly at full capacity, supporting captive power generation and steel production. At our 600-megawatt thermal power plant, planned maintenance of one 300-megawatt unit was completed following a 47-day shutdown during the quarter. We had to take multiple maintenance shutdowns over the last 2 years since the takeover of this thermal power project asset, as this was a distressed asset and had not undergone proper maintenance care, which was restricting it from achieving optimum performance level. With the maintenance cycles of the last 2 years, we are now confident about the efficient functioning of the plant and expect both cost savings in the operation and higher generation going forward. Our hydropower operations recorded strong performance during the quarter despite lower rainfall in certain catchment areas and an 18- day shutdown of the 113-megawatt Sikkim plant from 18th June to 5th July following a transmission tower collapse. Alongside thermal power, hydropower remains an important part of our long-term energy strategy. Let me now update you on our expansion plans. On the 600- megawatt thermal power project, the Ministry of Environment, Forest, and Climate Changes has approved the terms of reference for expanding capacity from 600 megawatts to 1,200 megawatts. We expect to receive environmental clearance within the current financial year. Page 3 of 15 Sarda Energy & Minerals Limited November 02, 2026 This brownfield expansion remains one of our most capital-efficient growth opportunities, supported by existing land, water availability, material handling systems, and power evacuation infrastructure. The approval process for our 3 small hydropower projects in Chhattisgarh with an aggregate capacity of 74 megawatts is progressing as scheduled. Our 50-megawatt captive solar project is expected to be commissioned in the next quarter, subject to resolution of right-of-way issues affecting the transmission line. The project will add to our captive renewable energy capacity. For our recently acquired 66-megawatt hydropower project in Arunachal Pradesh, most key statutory approvals are in place and critical land acquisition has been completed. Work on the approach road has commenced, and we remain confident of meeting the planned project timelines. On mining, development of the Shahpur West high-grade coal mine remains on schedule with commissioning targeted before the end of the current financial year. The Bartunga Hill coal mine also remains on schedule and is expected to be opened by the end of the next financial year. Regulatory approvals for the Gare Palma IV/5 and Senduri coal blocks continue to progress as planned. We remain prudent in managing our balance sheet with all ongoing expansion projects funded through internal accruals. We remain net debt-free on both a standalone and a consolidated basis with liquidity exceeding INR2,600 crores as of 30th September 2026. Our financial strength was further reflected in an upgrade of SEML's credit rating by one notch, from AA- to AA and a two notch upgrade in Sarda Metals & Alloys Limited rating, from A to AA- by CRISIL. This strong financial position gives us the flexibility to execute our growth plans while maintaining financial discipline. Looking ahead, our priorities remain timely project execution and deeper integration across mining, energy, and metals. Our greater emphasis on energy reflects its earning potential, while our integrated operations allow us to respond to market conditions and allocate resources towards better returns. We believe this approach Page 4 of 15 Sarda Energy & Minerals Limited November 02, 2026 will strengthen earnings visibility, and support sustainable value creation. With that, I'll hand over to Mr. Manish Sarda to take you through the industry environment and outlook. Manish Sarda: Good afternoo [Showing first 8,000 characters — download PDF for full document]