Sarda Energy profit slips 2% as revenue declines

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Sarda Energy & Minerals Limited (

) reported consolidated net profit of ₹320 crore in Q2 FY27, down 2.2% year-on-year from ₹328 crore. Total income declined 5.7% to ₹1,505 crore. What happened? EBITDA fell 2.7% to ₹564 crore from ₹580 crore in the corresponding quarter last year. The company attributed the quarterly performance impact to planned shutdowns, including a 47-day shutdown of one 300 MW unit at its thermal power plant and replacement of a 30 MW turbine at its steel plant. Despite the quarterly decline, first-half performance remained stronger. For H1 FY27, consolidated profit increased 4.5% to ₹799 crore, while EBITDA grew 3.9% to ₹1,326 crore, the company's highest-ever first-half EBITDA. The pellet plant also recorded its highest-ever half-yearly production at 4,29,059 metric tonnes. The company expanded its mining portfolio by securing the Avagudem manganese ore block in Andhra Pradesh through a subsidiary. Why does it matter? The quarterly decline was relatively modest despite planned operational disruptions. However, lower income and EBITDA indicate some pressure on performance. The stronger first-half numbers suggest that the business has maintained resilience over the six-month period. My view The quarter reflects temporary operational challenges rather than a sharp deterioration in overall performance. The record first-half EBITDA is encouraging, but the focus should remain on restoring full capacity utilisation and sustaining operating efficiency. What I am watching next I would track the normalisation of plant operations, power generation, steel and pellet production, EBITDA margins and progress in the manganese mining project. No Recommendations Source: Business Standard Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Sarda Energy & Minerals Limited.