SARDAEN's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,452.84 Cr (-4.91% YoY) and PAT growth of -5.35% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 31, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,452.84 Cr (-4.91% YoY) |
| PAT (Q2) | Rs. 305.89 Cr (-5.35% YoY) |
| EBITDA margin | 37.51% (+116 bps YoY) |
| EPS (Q2) | Rs. 8.68 (-5.35% YoY) |
Q2 FY27 was a clean quarter with no one-time items: revenue fell 4.91% YoY but EBITDA margin expanded ~116 bps YoY to 37.51%, with Power (margin 48.25%, EBIT +16.63% YoY) carrying the P&L while Steel deteriorated (EBIT −35.54% YoY). The balance sheet reached a derived net cash position of Rs.209.74 Cr with H1 FCF of Rs.776.78 Cr, and FY27 EBITDA guidance (above Rs.2,025 Cr) remains on track, though the PBT decline was driven by an unexplained Rs.52.44 Cr unallocable-cost swing and a Rs.74.60 Cr inventory build flattered reported costs.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "likely ahead" on steel consumption +7.5% and power consumption +11.5% | Revenue from Operations −4.91% YoY — external demand did not translate into company revenue (no volume data in filing | Contradicted |
| Power margin expansion (IEX Q2 avg Rs.5.7/unit, +46% YoY, per pre-call note) | Power-led margin expansion | Power segment result +16.63% YoY, margin +11.13pp to 48.25% — direction; realizations not disclosed in the filing | Played out |
| Steel margin reversal on September price rally | Steel margin direction should reverse "if volumes recovered" | Steel result −35.54% YoY, margin 12.01% | Contradicted |
| Ferro alloys flat-to-compressing | Flat-to-compressing margins | Result −3.72% YoY, margin 16.79% vs 17.33% | Played out |
| "Normal trajectory from Q2" test | Underlying earnings inflect vs adjusted Q1 PAT Rs.367.92 Cr | Owners PAT Rs.305.89 Cr, below both adjusted Q1 and Q2 FY26 (Rs.323.18 Cr) | Contradicted |
| Watch: billet/wire-rod volume recovery post-TG | Volume recovery is the swing factor | No production data in filing; steel revenue −10.90% QoQ — open for the call | Not observable |
| Watch: 50 MW solar, arbitration, coal, PPA additions, capex | Updates sought | Not addressed in the filing | Open for the call |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 consolidated EBITDA > FY26 (Rs.2,025 Cr, company basis) | Management commentary, Q1 FY27 earnings call | H1 FY27 EBITDA Rs.1,326.21 Cr, +3.86% YoY; H2 needs ≥Rs.698.31 Cr vs H2 FY26 Rs.747.61 Cr | On Track |
| Operations "return to normal trajectory from Q2 FY27 onwards" | Q1 FY27 press release / earnings call | Q2 clean of one-time items, but owners PAT Rs.305.89 Cr (−5.35% YoY) and below adjusted Q1 (Rs.367.92 Cr); power segment result +16.63% YoY | Partially |
| Capex Rs.500–700 Cr/yr (ex-IPP) | Management commentary, Nov 2025 / May 2026 calls | H1 cash PP&E investment Rs.204.07 Cr — needs Rs.296–496 Cr in H2 | Too Early |
| PPA coverage 300 MW by FY27 | Q4 FY26 / Q1 FY27 earnings calls | 380+ MW secured as of Q1 FY27 per prior notes; filing silent for Q2 | On Track |
| Energy division to become the major EBITDA contributor | Prior earnings calls (Q1 FY27) | Power = 77.2% of segment EBIT this quarter (386.31/500.19) | Confirmed |
| Steel prices "bottomed out" (Q4 FY26) | Q4 FY26 earnings call | Steel segment result −35.54% YoY, margin 12.01% (−4.56pp) | Contradicted so far |
| Balance-sheet prudence; expansions funded from internal accruals | Q1 FY27 earnings call | Derived net cash Rs.209.74 Cr; FCF Rs.776.78 Cr in H1 | Confirmed |
| Hydro results not comparable QoQ | Filing note (segment statement) | QoQ power revenue −14.71% vs −10.28% YoY — context | Consistent |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.