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Sarda Energy & Minerals Ltd H1 EBITDA reaches Rs 1,326 crore

Reviewed by Multibagg AI Research DeskNov 02, 2026, 02:59 PM IST•3 min read

Sarda Energy & Minerals Ltd reported consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 1,326 crore in H1 FY27, its highest half-yearly figure and 3.9% above H1 FY26. SEML’s standalone EBITDA fell 16.7% to Rs 830 crore after a planned 47-day maintenance shutdown at the 600 megawatt (MW) thermal power plant.

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Why did SEML’s H1 EBITDA rise despite lower income?

SEML’s consolidated EBITDA rose because the energy segment made a larger contribution to group earnings even as total income declined 2.6% year on year to Rs 3,221 crore in H1 FY27 from Rs 3,309 crore in H1 FY26. Energy accounted for 78% of consolidated earnings before interest and tax (EBIT), up from 72%, while steel’s contribution fell to 10% from 16% and ferro alloys remained at 12%.

The consolidated EBITDA margin increased to 41.2% in H1 FY27 from 38.6% in H1 FY26. Management attributed the improvement to a greater focus on the energy segment. Reported H1 FY27 revenue and EBITDA also included one-time prior-period tariff true-up income relating to the Sikkim hydropower plant, which affects comparisons with the prior year.

Consolidated raw-material costs declined to Rs 1,336 crore from Rs 1,546 crore, a reduction of Rs 210 crore, while other operating expenses increased to Rs 444 crore from Rs 384 crore. Employee expenses rose to Rs 115 crore from Rs 102 crore. These movements accompanied a Rs 49 crore increase in EBITDA despite an Rs 88 crore decline in total income.

Consolidated measure (Rs crore)	H1 FY26	H1 FY27	Change
Total income	3,309	3,221	-2.6%
EBITDA	1,277	1,326	3.9%
EBITDA margin	38.6%	41.2%	2.6 percentage points
Profit after tax	764	799	4.5%

How did SEML’s consolidated profit compare with last year?

SEML’s consolidated profit after tax (PAT) increased 4.5% to Rs 799 crore in H1 FY27 from Rs 764 crore in H1 FY26, while profit before tax increased 4.6% to Rs 1,030 crore from Rs 984 crore. The PAT margin rose to 24.8% from 23.1%, and earnings per share increased to Rs 21.7 from Rs 21.5.

Cash profit, calculated by SEML as PAT plus deferred tax and depreciation, rose to Rs 1,225 crore from Rs 1,158 crore in H1 FY26. Depreciation increased to Rs 181 crore from Rs 166 crore, while finance cost fell to Rs 116 crore from Rs 127 crore. SEML’s share of profit or loss of associates and joint ventures increased to Rs 32 crore from Rs 26 crore.

The second quarter did not match the half-year trend. Q2 FY27 consolidated EBITDA was Rs 564 crore, down 2.7% from Rs 580 crore in Q2 FY26 and 25.9% below Rs 762 crore in Q1 FY27. Q2 PAT declined 2.2% to Rs 320 crore, although quarterly EBITDA margin rose to 37.5% from 36.3% a year earlier.

Why did SEML’s standalone EBITDA decline 17%?

SEML’s standalone EBITDA declined 16.7% to Rs 830 crore in H1 FY27 from Rs 997 crore in H1 FY26, as the parent company’s operations faced planned and operational outages. Standalone revenue from operations fell 7.5% to Rs 2,220 crore from Rs 2,399 crore, while total income declined 8.4% to Rs 2,325 crore from Rs 2,538 crore.

The standalone EBITDA margin narrowed to 35.7% in H1 FY27 from 39.3% a year earlier. Standalone PAT fell 21.0% to Rs 494 crore from Rs 626 crore, and cash profit declined to Rs 767 crore from Rs 928 crore. Depreciation rose to Rs 113 crore from Rs 103 crore, while finance cost declined to Rs 64 crore from Rs 69 crore.

The difference between parent and group results was particularly apparent in Q2 FY27. Standalone EBITDA fell 20.5% year on year to Rs 319 crore and standalone PAT declined 26.8% to Rs 175 crore. Management said the quarter was temporarily affected by the planned 47-day maintenance shutdown at the 600 MW thermal power plant.

Standalone measure (Rs crore)	H1 FY26	H1 FY27	Change
Total income	2,538	2,325	-8.4%
EBITDA	997	830	-16.7%
EBITDA margin	39.3%	35.7%	-3.6 percentage points
Profit after tax	626	494	-21.0%

Which operating trends shaped SEML’s H1 FY27 result?

SEML’s pellet plant recorded half-yearly production of 429,059 metric tonnes (MT), 1% above 424,982 MT in H1 FY26. However, replacement of a 30 MW turbine affected steel production until mid-August. Steel billet output consequently fell 56% to 48,537 MT, while wire-rod production also declined 56% to 37,813 MT.

Energy generation was affected by the 47-day thermal-plant maintenance event and weather conditions. Independent power producer thermal generation fell 13% to 2,019 million kilowatt-hours in H1 FY27 from 2,312 million kilowatt-hours, while hydropower generation declined 5% to 458 million kilowatt-hours amid weak rainfall in certain catchment areas. Captive thermal generation decreased 14% to 600 million kilowatt-hours.

Mining and sales trends also showed lower volumes in several areas. Domestic coal output fell 38% to 600,420 MT, which SEML attributed to seasonal effects on evacuation infrastructure, while Indonesian coal output declined 17% to 678,272 MT. H1 domestic coal sales fell 8% to 101,989 MT and Indonesian coal sales declined 28% to 607,800 MT; traded-goods quantities are excluded from the sales figures.

Conclusion

SEML’s H1 FY27 results show that reported consolidated EBITDA and PAT increased even as parent-company profitability and several production volumes declined. Consolidated EBITDA rose to Rs 1,326 crore and margin reached 41.2%, with the energy segment contributing 78% of EBIT, while the 600 MW plant shutdown and turbine replacement weighed on standalone operations.

The next disclosed milestones are capacity-related. SEML plans thermal capacity of 1,362 MW and renewable capacity of 400 MW by FY30E, compared with 762 MW and 168 MW respectively in FY26, alongside coal-mining capacity of 7.1 million tonnes per annum from 1.8 million tonnes per annum. The Avagudem manganese mine, with estimated reserves of 0.70 million tonnes, is expected to begin operations in about 12 to 14 months, subject to lease execution and approvals.

Frequently Asked Questions

SEML reported consolidated EBITDA of Rs 1,326 crore in H1 FY27, compared with Rs 1,277 crore in H1 FY26. The 3.9% increase was its highest-ever half-yearly EBITDA. Reported H1 EBITDA includes a prior-period tariff true-up related to the Sikkim hydropower plant.

SEML’s standalone EBITDA fell 16.7% to Rs 830 crore from Rs 997 crore in H1 FY26. Management said Q2 was temporarily affected by a planned 47-day maintenance shutdown at its 600 MW thermal power plant. Replacement of a 30 MW turbine also affected steel production until mid-August.

SEML’s energy segment contributed 78% of consolidated EBIT in H1 FY27, compared with 72% in H1 FY26. The increase coincided with consolidated EBITDA margin rising to 41.2% from 38.6%. Management attributed the margin improvement to a greater focus on energy.

SEML reported consolidated PAT of Rs 799 crore in H1 FY27, up 4.5% from Rs 764 crore a year earlier. Profit before tax rose 4.6% to Rs 1,030 crore. Consolidated PAT margin increased to 24.8% from 23.1%.

SEML plans thermal capacity of 1,362 MW and renewable capacity of 400 MW by FY30E, compared with 762 MW and 168 MW respectively in FY26. It also targets coal-mining capacity of 7.1 million tonnes per annum, versus 1.8 million tonnes per annum in FY26. These are management plans rather than reported operating results.