Sarda Energy shares surge 20% after profit more than doubles in Q1

Shares of Sarda Energy & Minerals, the Raipur-based steel maker, rose as much as 20% to hit an intraday high of ₹527 on the BSE and National Stock Exchange after the company announced its June quarter earnings on Saturday.

Sarda Energy & Minerals reported a standalone net profit of ₹386 crore in the first quarter of current financial year (Q1FY26), marking an increase of 113% from ₹181 crore in the same period last year. Its revenue from operations surged 98% to ₹1,306 crore as against ₹659 crore in the year-ago period.

During the quarter, energy segment emerged as the growth engine contributing ₹800 crore in revenue and ₹467 crore in EBITDA, thus transforming SEML into an energy powerhouse, the company said in a press release.

Metals segment also posted a steady performance despite lower realizations, with stable volume growth, reflecting operational resilience, Sarda Energy added.

"On August 21, 2024, the Group completed acquisition of SKS Power Generation (Chhattisgarh) Limited (‘SKS’) pursuant to the Resolution Plan (‘RP’) as approved by the National Company Law Tribunal vide its order dated August 13, 2024, under Corporate Insolvency and Resolution Process (‘CIRP’) of the Insolvency and Bankruptcy Code, 2016 (‘IBC’). Approval of our Resolution Plan is challanged by unsuccessful applicants in the hon'ble Supreme Court, following rejection of their appeal in the NCLAT. Further, pursuant to the RP, the Group amalgamated the whole of the undertaking of SKS along with all the properties, assets, liabilities, permits, licenses, investments etc. with itself as a going concern w.e.f. Appointed Date of September 1, 2024. Results of current and immediate previous quarter includes the numbers of SKS, hence not comparable with the first quarter of the previous periods," the company said in a regulatory filing.

Sarda Energy shares were witnessing heavier than usual trading volumes as trading volumes spiked by 49 times to 1.02 crore shares as against an average trading volume of 2.09 lakh shares.

On the BSE, as many as 5.36 lakh shares changed hands as against an average of 20,000 shares traded daily in the past two weeks.

As of 11:23 am, Sarda Energy shares traded 19% higher at ₹522, outperforming the BSE 500 index which was up 0.3%.