Concall Transcript

An ISO 9001, ISO 14001 & ISO 45001 Certified Company SARDA ENERGY & MINERALS LTD. 10th August 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 3rd August 2026 Please find enclosed herewith the transcript of the Q1 / FY 27 Earnings Conference Call conducted on 3rd August 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 Q1 FY27 Earnings Conference Call” August 03, 2026 MANAGEMENT: MR. PANKAJ SARDA –MANAGING DIRECTOR – SARDA ENERGY & MINERALS LIMITED MR. MANISH SARDA – DEPUTY MANAGING DIRECTOR – SARDA METALS & ALLOYS LIMITED MR. PADAM KUMAR JAIN – DIRECTOR AND CHIEF FINANCIAL OFFICER – SARDA ENERGY & MINERALS LIMITED MR. NILAY JOSHI – EXECUTIVE DIRECTOR – SARDA ENERGY & MINERALS LIMITED MODERATOR: MR. PARTH CHAUHAN – ADFACTORS PR Page 1 of 12 Sarda Energy & Minerals Limited August 03, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Sarda Energy & Minerals Limited Q1 FY '27 Earnings Conference Call. 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 star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Parth Chauhan from Adfactors PR. Thank you, and over to you, sir. Parth Chauhan: Good evening, everyone, and thank you for joining us today to discuss the Q1 FY '27 business performance of Sarda Energy & Minerals Limited. We have with us Mr. Pankaj Sarda, Managing Director; Mr. Manish Sarda, Deputy Managing Director; Mr. Padam Kumar Jain, Director and Chief Financial Officer; and Mr. Nilay Joshi, Executive Director. Before we proceed with this call, I would like to mention that some of the statements made on this call may be forward-looking in nature and may involve risks and uncertainties that are difficult to predict. The company undertakes no obligation to update any forward-looking statement to reflect developments that occur after the statement is made. Documents related to the company's financial performance, including the investor presentation have been uploaded on the stock exchanges and company website. I now hand over the conference to Mr. Pankaj Sarda. Thank you, and over to you, sir. Pankaj Sarda: Thank you, Parth. Good afternoon, and thank you all for joining us on the Q1 FY '27 earnings call. I hope you have had a chance to go through the financial results and investor presentation uploaded on the exchanges and our company website. Q1 FY '27 stands as testament to the series of decisions we have taken over the last few years to build a diversified integrated business model, one that has continued to help us navigate external challenges. Following a record FY '26, we have begun the new financial year with continued progress across our strategic priorities, strengthening our integrated business model through disciplined execution, strengthening expansion pipelines through disciplined capital allocation and improving efficiencies. Let me now walk you through the key highlights of the quarter. Despite a combination of planned maintenance shutdowns, unplanned outages and seasonal factors, Q1 FY '27 financial performance remained robust with the highest ever quarterly EBITDA and PAT. Q1 total income stood at INR 1,717 crores, EBITDA at INR 762 crores and PAT at INR 478 crores, a growth of 9.4% Y-o-Y. Net profit included a onetime net benefit worth INR 110 crores, mainly relating to the regulatory approval of final project cost for 113-megawatt Sikkim hydropower plant. Moving to the operational performance. Our energy business remained the key growth driver, contributing nearly 70% of consolidated EBITDA and providing stability to overall earnings. We have secured medium and long-term power supply agreements for over 380 megawatts out of the total 710-megawatt saleable power capacity, which meaningfully improves revenue visibility and earnings stability for our power business going forward. Page 2 of 12 Sarda Energy & Minerals Limited August 03, 2026 During the quarter, generation at the 600-megawatt thermal power plant continued to be steady during the quarter with an average PLF of 85.9%. Generation across our small hydropower plants was affected by delayed monsoon conditions during Q1. However, we are encouraged by the early trends in July and are hopeful of a better momentum in Q2. Separately, as previously announced in stock exchange intimation, our 113-megawatt Sikkim hydropower project was shut from 18th June to 5th July, following the collapse of a transmission tower caused by heavy rainfall and landslide. The plant has resumed operations fully and is functioning at normal level. On the metals front, while iron ore pellet production supported our operating performance, but the consolidated revenue for the steel and ferro alloys segments declined Q-o-Q as the production was impacted by several planned outages. Firstly, the planned replacement of 30- megawatt captive power plant unit at Raipur, along with improvements works across steel and ferro alloys facilities temporarily impacted production. This resulted in a temporary Y-o-Y decline in production of billets, wire rod, etcetera. However, the new 30-megawatt unit is ready for trial operations. We expect stable commercial operations to begin by the middle of this month. Secondly, at Vizag, the captive power plant underwent scheduled maintenance for 23 days, affecting ferro alloys production. Additionally, one of the ferro alloys units at Siltara was also under shutdown for 53 days for refurbishment. On the realization front, the steel prices remained largely range bound with a mild negative bias during the quarter, while ferro alloys prices saw a modest improvement, the price realization from sale of power was lower Y-o-Y. Moving on to the updates on our ongoing capacity expansion. Execution across our major expansion initiatives continues to progress as planned. The regulatory approval process for expanding our thermal power capacity at SKS from 600 megawatts to 1,200 megawatt is on track. The brownfield expansion remains one of the most capital-efficient growth opportunities available to us, backed by existing land, water, material handling system and evacuation infrastructure. Approval process for our 3 small hydro projects in Chhattisgarh, 74-megawatt aggregate is progressing as scheduled. Commissioning of our 50-megawatt captive solar project has been delayed due to right-of-way issues of the transmission line. We now expect commissioning before the end of the next quarter. For our recently acquired 66-megawatt hydropower project in Arunachal Pradesh, most key statutory approvals are in hand and critical land acquisition is complete. Work for approach road started. We remain confident of hitting our planned time lines on this project. On mining, development of the Shahpur West high-grade coal mine remains on schedule with commissioning targeted before the end of FY27. The Bartunga Hill coal mine is expected to be opened by the end of next financial year, while regulatory approvals for the Gare Palma IV/5 and Senduri coal blocks continue to progress as planned. Page 3 of 12 Sarda Energy & Minerals Limited August 03, 2026 Additionally, as part of our sustainability agenda, we are investing approximately INR 300 crores. The project includes a waste heat recovery power plant at Viz [Showing first 8,000 characters — download PDF for full document]