Sarda Energy & Minerals saw its share price rise sharply by 20%, reaching a 5-month high of ₹527 apiece in Monday’s trade on August 4. The rally came in reaction to the company’s stellar June-quarter performance, which boosted investor sentiment.
The company, on Saturday, reported a consolidated net profit of ₹437 crore, marking a 120% YoY and 335% QoQ jump. Revenue from operations came in at ₹1,633 crore compared to ₹926 crore in the June 2024 quarter, representing a 76% YoY growth. At the operating level, EBITDA stood at ₹617 crore versus ₹261 crore in the year-ago quarter, with margins expanding by 1,000 basis points YoY to 38%.
The company stated that its energy segment emerged as the growth engine, contributing ₹800 crore in revenue (47% of consolidated revenue) and ₹467 crore in EBITDA (67% of consolidated EBITDA). The Metals segment also posted a steady performance despite lower realizations, supported by stable volume growth.
It reported a strong operational performance in Q1FY26, with notable sequential improvements across most product categories. Iron ore pellet production rose to 230,000 MT, up 23% QoQ and 9% YoY. Sponge iron output increased 22% QoQ to 84,000 MT, marking a 4% YoY rise.
Steel billet production grew 35% QoQ and 17% YoY to 54,000 MT, while wire rod output saw a sharp 54% QoQ and 6% YoY increase to 42,000 MT. H.B wire production edged up 7% QoQ and 9% YoY, reaching 10,000 MT.
In ferro alloys, the company produced 51,000 MT, reflecting a 6% QoQ and 9% YoY increase. Captive thermal power generation improved 15% QoQ and 15% YoY to 355 Mn KWh, while thermal IPP power output rose 13% QoQ to 1,182 Mn KWh. Hydro powergeneration surged significantly by 431% QoQ and 37% YoY, totaling 120 Mn kWh, as per the company’s earnings filing.
Wealth Creator
Looking at the stock’s performance, Sarda Energy & Minerals shares have maintained a steady upward trend since April 2020, breaking record highs without any major pullbacks, even during periods of sustained sell-offs in the Indian stock market.
From the April lows of ₹11.35 apiece, the stock has jumped 4500% to trade at the current level of ₹522. In March, it recorded a fresh all-time high of ₹565.55, and at current levels, it is just 7.70% away from that record high. Over the last three years, the stock has delivered a 500% return, and in the last five years, it has soared by 3,000%.
About Sarda Energy & Minerals
Sarda Energy & Minerals Limited (SEML), incorporated in 1973, is an energy and minerals company with operational iron ore and coal mines in Chhattisgarh and thermal and hydropower generation plants in different locations across India, with a growing portfolio of mineral and energy assets.
The company said it has a total operational thermal power capacity of 761.50 MW and hydropower capacity of 167 MW and also an integrated steel producer of long steel products, having a steel manufacturing facility at Raipur, Chhattisgarh, and a leading producer and exporter of ferro alloys with manufacturing facilities at Raipur & Vizag.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
