Sarda Energy profit hits ₹1,109 crore as production records fall
Sarda Energy & Minerals posted a 58% jump in annual profit, supported by its first-ever EBITDA breach of ₹2,000 crore and a Supreme Court win for SKS Power.
What's new
- Consolidated net profit climbed 58% to ₹1,109 crore for FY26.
- Revenue from operations rose 23% to ₹5,928 crore.
- EBITDA crossed the ₹2,000 crore threshold for the first time.
- Supreme Court upheld the SKS Power resolution plan, targeting 1,200 MW capacity by 2030.
Why this matters
The company is hitting record production levels across its core segments while clearing a major legal hurdle for its expansion. Management's decision to pay a 200% dividend suggests confidence in the current cash flow profile.
What we're watching
- Execution timelines for the SKS Power capacity expansion.
- Sustainability of record production levels in the coming quarters.
- Dividend payout trends following this record distribution.
The full read
Sarda Energy & Minerals delivered a strong FY26, with consolidated net profit rising 58% to ₹1,109 crore. Revenue from operations reached ₹5,928 crore, a 23% increase over the previous year. The company hit a major internal milestone as EBITDA crossed ₹2,000 crore for the first time, fueled by record production across its power and metal segments. Beyond the financials, the Supreme Court's decision to uphold the resolution plan for SKS Power provides a clear path for the company to double its capacity to 1,200 MW by 2030. Shareholders will receive a dividend of ₹2 per share, the company's highest payout to date. The combination of record production and the removal of a significant legal bottleneck for expansion marks a strong finish to the fiscal year.
Questions answered
- What drove Sarda Energy's profit growth in FY26?
- Profit growth came from record power generation and higher metal production volumes throughout the year.
- How much dividend did the company declare?
- The company declared a dividend of ₹2 per share, which it described as its highest ever at a 200% payout.
- What is the significance of the Supreme Court's decision on SKS Power?
- The court upheld Sarda Energy's resolution plan for SKS Power, which the company intends to use to double its total power capacity to 1,200 MW by 2030.
- How did core operating metrics perform?
- Revenue from operations grew 23% to ₹5,928 crore, while EBITDA surpassed the ₹2,000 crore mark for the first time.