Sarda Energy Reports Record H1 EBITDA at Rs 1,326 Crore

Sarda Energy & Minerals posted a record-high H1 EBITDA of Rs 1,326 crore and a half-yearly Profit After Tax of Rs 799 crore.

Reader Takeaway: Record EBITDA driven by energy segment strength, though planned maintenance shutdowns temporarily weighed on Q2 production output.

What just happened

Sarda Energy & Minerals announced its financial results for the first half of fiscal year 2027. While the company achieved its highest-ever H1 EBITDA of Rs 1,326 crore, the quarterly performance for Q2 FY27 showed a minor decline in total income to Rs 1,505 crore compared to Rs 1,596 crore in the same period last year. This dip was primarily attributed to planned maintenance shutdowns, including a 47-day closure of a 300 MW unit at its thermal power plant and turbine replacement work at its steel facility.

Why this matters

The company’s heavy reliance on its integrated energy segment—which contributes over 75% of its total EBITDA—continues to act as a buffer against volatility in other segments. The successful acquisition of the Avagudem Manganese Block in Andhra Pradesh by its subsidiary, Sarda Metals and Alloys Limited, is a significant strategic move intended to provide long-term backward integration and secure raw material supply for the ferro alloys business.

What changes now

With the completion of the planned shutdowns in August 2026, the company expects improved asset utilization in the upcoming quarters. The focus has now shifted toward integrating the newly acquired manganese block into its operations to enhance cost competitiveness.

Risks to watch

Investors should monitor the operational costs associated with the new mining block and the efficiency gains from the recent capital-intensive maintenance cycles. Sustained energy prices remain a critical variable given the heavy EBITDA reliance on the power segment.

Context metrics (time-bound)

For H1 FY27, Sarda Energy reported a 3.9% YoY growth in EBITDA and a 4.5% YoY growth in PAT. Cash profit for the half-year stood at Rs 1,225 crore compared to Rs 1,158 crore in H1 FY26.

What to track next

Watch for updates on mining output from the Avagudem block and performance recovery across the steel and thermal power divisions following the conclusion of maintenance activities.