1. At a Glance – Blink and You’ll Miss the Punch
Sarda Energy & Minerals Ltd (SEML) is what happens when a traditional steel company wakes up one morning and says, “Boss, steel cyclic hai… thoda power aur mining bhi daal dete hain.”
Market cap is sitting at ₹18,141 Cr, stock price hovering around ₹515, down about 5% over six months, while the business casually posts 9M FY26 PAT of ₹954 Cr (+59% YoY). Yes, the stock is sulking while profits are partying.
Operating margins are a fat 30%, ROCE ~15%, ROE 13.4%, and debt-to-equity a manageable 0.38. Promoters are chilling with 73.2% holding and zero pledge, which in today’s market is rarer than honest real estate ads.
Latest quarter numbers dipped QoQ (PAT -7%), but zoom out and SEML looks less like a steel stock and more like a vertically integrated cash-flow machine powered by steel, ferro alloys, power plants, and mines.
So… is the market missing something, or is it just bored? 🤔
2. Introduction – From Steel Bhaiyya to Energy Uncle
Founded in 1973, SEML is the flagship of the Sarda Group and has spent five decades quietly building assets while louder steel names hogged headlines.
Earlier avatar:
👉 Steel + Ferro alloys = cyclical headache
New avatar:
👉 Steel + Ferro + Captive & commercial power + Coal + Iron ore = “Main cycle-proof ho raha hoon”
Over the last few years, SEML has deliberately pushed into power generation and mining, not as side hustles, but as margin stabilisers. The result?
- FY25–FY26 profits exploded
- EBITDA margins crossed 30%
- Cash flows started behaving like adults
This isn’t a turnaround story. This is a business model evolution, executed slowly, boringly, and effectively. No TED talks, no fancy jargon—just assets doing asset things.
Question for you: How many steel companies do you know where power and mining are becoming profit engines instead of footnotes?
3. Business Model – WTF Do They Even Do?
Let’s simplify this like explaining to a smart but lazy investor 👇
🏗️ Steel (46% of FY24 revenue)
Long steel products only—no glamour flat steel drama.
- Pellets: 9 lakh MT
- Sponge Iron: 3.6 lakh MT
- Billets: 3 lakh MT
- Wire Rods & HB Wire included
This is basic, boring, essential steel. Think rebar, infrastructure, real economy stuff. Margins fluctuate, yes—but volumes and integration help.
🔥 Ferro Alloys (38%)
This is where SEML flexes.
- One of India’s largest manganese-based ferro alloy producers
- 147 MVA capacity across Vizag & Raipur
- Strong export presence
Ferro alloys are volatile, but when the cycle turns favourable, profits turn savage (in a good way).
⚡ Power (9%)
Earlier: captive cost saver
Now: profit centre
- 761.5 MW thermal
- 141.8 MW hydro
- 600 MW SKS Power acquisition (₹1,950 Cr) = commercial thermal revenues unlocked
Add solar and hybrid hydro, and suddenly SEML looks like it’s auditioning for a utility company role.
⛏️ Mining (7% and rising)
This is the quiet assassin.
- Captive iron ore: 1.5 MTPA
- Coal mine: 1.68 MTPA, expanding to
