SEML triples EBITDA as energy capacity reaches 930 MW in FY26

Sarda Energy & Minerals Ltd. reports a substantially larger energy platform after FY21: capacity rose from 191 megawatts (MW) to 930 MW by FY26 and EBITDA reached Rs 2,025 crore, versus Rs 664 crore in FY21. SEML links this change to thermal, hydro and coal-mine additions, although it does not disclose segment margins or establish energy as the higher-margin business.

How did SEML diversify its operating base?

SEML diversified its operating base through thermal power, hydro power and coal mining additions between FY22 and FY25. In FY21, SEML describes itself as an integrated metals business spanning steel and ferro alloys, with earnings exposed to steel and ferro-alloy price cycles, Chinese markets and raw-material costs. Its stated goal was to build scale, diversify capabilities and create long-term value.

SEML acquired SKS Power's two 300 MW thermal units in Chhattisgarh through the Insolvency and Bankruptcy Code (IBC), operationalised an approximately 113 MW hydro project in Sikkim, and began mining at Gare Palma IV/7 at 1.20 million tonnes per annum (MTPA). The presentation says the coal mine's capacity was expanded to 1.80 MTPA in FY26, while total energy capacity increased from 191 MW in FY21 to 930 MW in FY26.

SEML describes FY26 as preparation for its next growth phase after successful integration and SC ratification of the SKS Power acquisition. It also says a new power purchase agreement (PPA) was signed in FY26 and that management views it as improving long-term revenue visibility. The presentation does not provide revenue, EBITDA or margin data separately for energy and metals, preventing a direct assessment of each segment's profitability.

What financial results accompanied SEML's expansion?

SEML's consolidated earnings increased in FY26, with EBITDA, or earnings before interest, tax, depreciation and amortisation, reaching Rs 2,025 crore from Rs 1,409 crore in FY25. EBITDA margin was 29% in both years, while profit after tax (PAT) rose to Rs 1,109 crore from Rs 702 crore and PAT margin increased to 18.7% from 15%.

SEML's FY26 total income of Rs 5,928 crore was higher than Rs 4,052 crore in FY24, while EBITDA rose from Rs 982 crore and the margin increased from 24% to 29%. In H1 FY27, SEML reported total income of Rs 3,221 crore, EBITDA of Rs 1,326 crore and PAT of Rs 799 crore. These are six-month figures and are not directly comparable with full-year periods. The transformation slide calls Rs 5,928 crore FY26 revenue, whereas the consolidated statement identifies it as total income and lists revenue from operations at Rs 5,690 crore.

How did SEML's power generation and sales change?

SEML's thermal generation rose to 5,458 million kilowatt-hours (Mn kWh) in FY26 from 3,482 Mn kWh in FY25, while thermal sales increased to 3,833 Mn kWh from 2,096 Mn kWh. The FY25 thermal data include the effect of IPP Binjkot, identified as SKS's two 300 MW thermal plant, acquired on 21 August 2024.

SEML's hydro generation reached 661 Mn kWh in FY26, compared with 505 Mn kWh in FY25, and hydro sales rose to 643 Mn kWh from 473 Mn kWh. In H1 FY27, thermal generation was 2,619 Mn kWh and thermal sales were 1,908 Mn kWh, while hydro generation and sales were 458 Mn kWh and 450 Mn kWh. Thermal sales were only 71 Mn kWh against generation of 1,083 Mn kWh in FY23, but reached 3,833 Mn kWh against 5,458 Mn kWh of generation in FY26.

What do SEML's balance sheet and cash flows show?

SEML reported tangible net worth of Rs 8,036 crore at September 2026, up from Rs 7,335 crore at March 2026 and Rs 3,375 crore at March 2023. Cash and cash equivalents were Rs 1,024 crore at September 2026, compared with Rs 864 crore six months earlier, while investments rose to Rs 2,006 crore from Rs 1,645 crore. The presentation also cites FY26 liquidity of Rs 2,380 crore and an AA- long-term credit rating, upgraded from A in FY21.

SEML's long-term borrowings declined to Rs 1,990 crore at September 2026 from Rs 2,134 crore at March 2026, and short-term borrowings fell to Rs 428 crore from Rs 460 crore. Cash from operating activity increased to Rs 1,735 crore in FY26 from Rs 886 crore in FY25, while investing cash outflow increased to Rs 1,166 crore from Rs 349 crore. In H1 FY27, operating cash flow was Rs 980 crore, investing cash outflow was Rs 662 crore and financing cash outflow was Rs 357 crore, resulting in net cash flow of Rs (39) crore.

Conclusion

SEML's reported shift is visible in its capacity, generation and consolidated financial data. Energy capacity increased from 191 MW in FY21 to 930 MW in FY26, while EBITDA rose from Rs 664 crore to Rs 2,025 crore and PAT increased from Rs 376 crore to Rs 1,109 crore. FY26 thermal generation of 5,458 Mn kWh and hydro generation of 661 Mn kWh show the larger operational role of the power portfolio.

The next point to watch is delivery of the long-term revenue visibility management associates with the FY26 PPA, alongside production from the expanded 1.80 MTPA Gare Palma IV/7 coal mine. H1 FY27 reported an EBITDA margin of 41.2%, operating cash flow of Rs 980 crore and cash and cash equivalents of Rs 1,024 crore at September 2026, but those half-year measures will need to be assessed against full-year investment and operating outcomes.