Sarda Energy & Minerals Limited (SARDAEN) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Sardar Energy and Minerals Ltd. Q1FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pat Chauhan from iFactor PR. Thank you and over to you, sir.

Good evening, everyone, and thank you for joining us today to discuss the Q1 FY27 business performance of Sarda Energy and Minerals Limited. We have with us Mr. Pankas Sarda, Managing Director, Mr. Manish Sarda, Deputy Managing Director, Mr. Padam Kumar Jain, Director and Chief Financial Officer, and Mr. Nelai Joshi, Executive Director. Before we proceed with this call, I would like to mention that some of the statements made in this call may be forward-looking in nature and may involve risks and uncertainties that are difficult to predict. The company undertakes no obligation to update any forward-looking statement to reflect developments that occur after the statement is made. Documents related to the company's financial performance, including the investor presentation, have been uploaded in the stock exchanges and company website. I now hand over the conference to Mr. Pankaj Sardha. Thank you, and over to you, sir.

Thank you, Parth. Good afternoon, and thank you all for joining us on the Q1 FY27 earnings call. I hope you have had a chance to go through the financial results and investor presentation uploaded on the exchanges and our company website. Q1 FY27 stands as testament to the series of decisions we have taken over the last few years to build a diversified, integrated business model, one that has continued to help us navigate external challenges. Following a record FY26, we have begun the new financial year with continued progress across our strategic priorities, strengthening our integrated business model through disciplined execution, strengthening expansion pipelines, through disciplined capital allocation, and improving efficiencies. Let me now walk you through the key highlights of the quarter. Despite a combination of planned maintenance shutdowns, unplanned outages, and seasonal factors, Q1 FY27 financial performance remained robust, with the highest ever quarterly EBITDA and Q1 total income stood at Rs. 1,717 crores, EBITDA at Rs. 762 crores, and PAT at Rs. 478 crores, a growth of 9.4% YOY. Net profit included a one-time net benefit worth Rs. 110 crores, mainly relating to the regulatory approval of final project cost for 113 megawatt Sikkim hydropower plant. Moving to the operational performance. Our energy business remained the key growth driver, contributing nearly 70% of consolidated EBITDA and providing stability to overall earnings. We have secured medium and long-term power supply agreements for over 380 MW out of the total 710 MW saleable power capacity, which meaningfully improves revenue visibility and earning stability for our power business going forward. During the quarter, generation at the 600 MW thermal power plant continued to be steady during the quarter with an average PLF of 85.9%. Generation across our small hydropower plants was affected by delayed monsoon conditions during Q1. However, we are encouraged by the early trends in July and are hopeful of a better momentum in Q2. Separately, as previously announced, install exchange intimation, our 113 MW Sikkim Hydropar project was shut from 18th June to 5th July, following the collapse of a transmission tower caused by heavy rainfall and landslides. The plant has resumed operations fully and is functioning at normal level. On the metals front, while iron ore pellet production supported our operating performance, but the consolidated revenue for the steel and ferroloid segments declined QoQ as the production was impacted by several plant outages. Firstly, the planned replacement of 30 MW captive power plant unit at Raipur, along with improvements works across steel and ferrolois facilities, temporarily impacted production. This resulted in a temporary YOY decline in production of billets, wire rod, etc. However, the new 30 MW unit is ready for trial operations. We expect stable commercial operations to begin by the middle of this month. Secondly, at WISAC, the captive power plant underwent scheduled maintenance for 23 days, affecting ferrolois production. Additionally, one of the ferrolois units at Siltara was also under shutdown for 53 days for refurbishment. On the realization front, the steel prices remained largely range-bound with a mild negative bias during the quarter, while ferrolois prices saw a modest improvement. The price realization from sale of power was lower worldwide. Moving on to the updates on our ongoing capacity expansion. Execution across our major expansion initiative continues to progress as planned. The regulatory approval process for expanding our thermal power capacity at SKS from 600 megawatt to 1200 megawatt is on track. The brownfield expansion remains one of the most capital-efficient growth opportunities available to us, backed by existing land, water, material handling system, and evacuation infrastructure. The removal process for our three small hydro projects in Chhattisgarh, 74 MW aggregate, is progressing as scheduled. Commissioning of our 50 MW captive solar project has been delayed due to right-of-way issues on the transmission line. We now expect commissioning before the end of the next quarter. For our recently acquired 66 MW hydropower project in Arunachal Pradesh, most key statutory approvals are in hand and critical land acquisition is complete. Work for approach road started. We remain confident of hitting our planned timelines on this project. On mining, development of the Shahpur West high-grade coal mine remains on schedule with commissioning targeted before the end of FI 27. The Bartunga Hill coal mine is expected to be opened by the end of next financial year, while regulatory approvals for the Gare Palma 4x5 and Sindhuri coal blocks continue to progress as planned. Additionally, as part of our sustainability agenda, we are investing approximately 300 crores. The project includes a waste heat recovery power plant at WISAC with an aim to improve energy efficiency and resource utilization. As committed earlier, we continue to be very prudent about our balance sheet while undertaking all these expansions. All ongoing expansion projects continue to be funded through internal accruals. We are now net debt-free on both a standalone and consolidated basis with a strong balance sheet and healthy liquidity of more than Rs. 2,500 crores as of 30 June 2026, giving us significant flexibility to execute our long-term growth plan.

Looking ahead, our focus remains Good afternoon, everyone, and thank you for joining us. Good afternoon, everyone. Can you hear me? Hello?

Yes, sir.

Can you hear me?

Yes, sir, we can hear you loud and clear.

Energy sector demand. Not audible?

It is very much audible.

Okay, sir, let me go ahead then. India's power generation grew 9.4% year-on-year to around 526. Talking about energy sector demand, India's... Hello?

Hello, are you there? Yeah, I'm there, very much there.

I can hear both of you. Talking about energy sector demand, I think they are unable to hear us. Hello? Am I audible? Yes, you are audible, but so is Manish.

Manish, sir, you may continue.

So, India's power generation grew 9.4% year-on-year to around 523 billion units during the quarter. Thermal generation grew 7.5% and continued to account for close to 70% of the country's total generation, while renewable generation, including large hydro, grew approximately 15%. Delayed monsoon conditions weighed on hydropower, with small hydropower generation declining roughly 30% year-on-year, and large hydropower generation declining 7%. This was more than offset by a sharp 45% increase in solar generation. Average prices on the day-ahead market held broadly stable at 3.85 per unit, compared to 3.92 per unit in the corresponding period last year. However, prices in July have moved up from 4.19 to Rs.5 per unit year-on-year. The government continues to prioritize energy security by promoting domestic energy resources and reducing dependence on imported coal and oil. Reflecting global supply disruptions, higher logistics costs from geopolitical tensions, and Indonesia's export restrictions, the Indian coal index for June 2026 was minus 21 percent higher than June 2025 and minus 11 percent higher than March 2026. Steel Sector India continued to outperform major global steel producers through the first half of calendar year 2026. Domestic crude steel production grew over 7.5%, even as China and several other major producers saw declines. The weak domestic Chinese real estate demand continued to push exports into global market at around 10 million tonnes per month. Amidst this, India's apparent steel consumption grew year-on-year, though momentum-moderated sequentially. Imports have once again exceeded exports after two quarters, partly on the back of free trade agreements with partner countries. We welcome the government's anti-dumping investigations, which should help address unfair imports and support domestic producers. The ongoing conflict in West Asia has raised input costs and created supply chain disruptions. Elevated oil prices could inflationary pressure and affect demand in certain and used sectors. While we remain in a wait-and-watch position, given India's predominantly domestic demand-driven economy, we expect the overall impact to remain manageable. Government initiatives under Viksad Bharat 2047, Make in India, and Aatma Nirbhar Bharat continue to drive investment across manufacturing, logistics, electronics, semiconductors, data centers, and industrial infrastructure, creating sustained long-term demand for reliable, competitively priced power as well as metal sector. How is SEML's positioning? Against the backdrop, we believe SEML is well-placed to capture these structural opportunities through our integrated presence across mining, energy, and metals. Our diversified and calibrated expansion pipeline is well-aligned with India's long-term priorities of energy security, manufacturing-led growth, and economic self-reliance. With plans to quadruple our mining capacity and double our energy generation capacity, we are entering the next phase of growth with a strong balance sheet, improving operating momentum and clearly defined roadmap. We remain confident that our integrated model, disciplined capital allocation, and continued execution focus will drive sustainable growth and enduring value for all stakeholders. With that, we'd be happy to take your questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Participants who wishes to ask a question, may press star and 1 on their touchtone telephone.

The first question is from the line of Sigil Harira from GreenEdge Wealth. Please proceed.

Yeah, hi. Thank you for the opportunity. See, my first question is, you know, on our, you know, IPP, you know, the power sale and power realization. So if I just back calculate the numbers, in this quarter, we earned almost 8 rupees a unit on our power sale. Now, you know, I heard on the call that, you know, almost 370 megawatts of our capacity has, you know, we have some long-term PPAs or mid-term PPAs for that. And I'm sure the rates for PPAs would be between 5 to 6 rupees. So, is it fair to say that going right as more and more PPAs are signed by us, you know, the revenue per unit of power will keep declining?

Just hold on. I think Raipur is disconnected. Can you connect them, please? Yes, sir.

I'll just connect them again.

Hello, sir. Am I audible?

Hello?

Can't hear you.

Hello? Am I audible to you, sir? Sir, I think the Raipu team is unable to hear us.

So, then you do one thing. Are they on mobile? Are they on mobile or are they on landline? No, no. See, you connect on the mobile. I'll just give you the number. Wait.

Yeah.

Just a second.

Ladies and gentlemen, please stay connected.

Ladies and gentlemen, we have the management connected. So, you may proceed.

Yeah, this is Begand Haria. Should I ask my question? Yes, please. Yeah. Yes, sir. My question is on the power, you know, on our power business. See, I, when I back calculate, I get that, you know, we have earned around 8 rupees a unit on an average for this quarter, which is quite a good realization. But I heard on the call that, you know, almost 378 megawatt of our power plant capacity is, you know, going to be on long-term PPS. And the rates there may be in that 5 to 6 rupees unit. So, would our revenue from this power plant keep declining as we find more and more long-term PPS? Hello.

I think there is some, there is some understanding that our current period income also includes the previous year adjustments. So, the average realization calculated by you is not a correct one.

Okay. Okay.

Reward calculation will not work because we have certain income for the previous period also.

Okay, okay, got it. Sir, but then going ahead, like, we should generally assume for the full year, like, 5 to 6 rupees a unit on whatever electricity is generated and sold by us? Yes, yes. Okay, okay, okay.

It will be in between this. And over a period of time, it will go up. For a period of time, as the insulation goes up and peak demand goes up, this will increase particularly for the hydropower side.

Okay, okay, okay. Okay, sir, then just, you know, I think this summer, you know, it said that there was a lot of solar power in the daytime, which is why the daytime rates did not go up at all despite very high demand. So, as Sarda Energy, how do you see this whole situation of, you know, excess solar capacity coming, and, you know, like, will it hit us, or that is precisely the reason why we are doing these long-term PPS?

No, as the solar is increasing, at the same time, this DES is also coming up. And there will be certain policy changes at the government level also, when they may also give concessional power tariff during day hours to the industry, or maybe charging assistance, and all those things. And policy initiatives will also happen. So, over a period of time, things will get balanced. But yes, definitely for the present time, during day hour, because of solar, power is excessive. And during peak hour, the gap has gone up. So, we are getting much higher prices during peak hour. And peak hour period has gone up from 5 hours to maybe 8 hours, 10 hours like that.

Got it. Got it. Got it. Okay. Okay. And in case of hydropower, you know, wherever our hydropower Our projects are, is there enough water, like has it rained in the reservoirs which are there around our hydropower plants?

In case of our last hydropower plant of 113 MW we have generated higher than the last year, we are at part even after closure of the unit for almost 13 days. So indirectly, we can say we have generated better than the previous year. But in case of smaller hydropower plants, there was a shortfall of water because there was a delay in the rainfall.

Right, right, right.

The future of our generation was hardly 1% lesser than the previous year.

Yes, sir, but the next quarter, this quarter is the largest for our hydropower.

So I was just checking if, you know, there will be nothing. Just a second.

Can you repeat your question?

Hello? Please, can you repeat your question?

Yeah, my question is that quarter two is the largest quarter for hydropower generation. So I just wanted to ask if have the rains come and, you know, is the water adequate in the reservoir, you know, from where this hydropower will be generated?

Yeah, rains are good, and July we are getting far better rains in the smaller hydropower projects also.

Oh, okay, okay, okay, got it. And then my last question will be for this year, which is financial year 27, what will lead to, say, growth in revenue or EBITDA? Because, you know, whatever project we have on the coal mining side or in the power side, a lot of them are probably going to come later on, you know. So, is there any, can we expect any growth in this current year?

One will definitely be the improvement in the power pass realizations. Another is the improvement in the power capacity realizations in our IPP. These are two primary factors and with the commissioning of our 30 megawatt power plant. There will be improvement in the generation.

Correct.

Okay. And then, sir, you don't see any improvement on the metal side, like, you know, any…

Metal, sir, the production will go up with the commission of the 30-megawatt new power plant. Our captive power generation will go up. That will definitely help in increased production of the steel side.

Okay. Okay, sir. Okay, thank you. Thank you.

Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. To ask a question, please press star and 1 now. The next question is from the line of Manav Kogia from Yes Security. Please proceed.

Yeah. Hi. Very good evening, and thank you so much for the opportunity. So my first question is pertaining to the 110 crore impact on the net profit that we have witnessed this quarter. I just wanted to get a sense of, you know, if you could give me the number of what the actual impact was on the top line and on the EBITDA level.

Yeah, in the top line, in the revenue, it was 162.64 crores was added in the revenue side.

Okay.

And there was an increase of about 18 crores on the other income in the form of interest.

Okay.

Okay. At EBITDA level, it is easy. I'll just give the figures. Before tax, you can directly reduce, add up 25% to the 110 crores. That is the EBITDA level effect.

Okay, net of tax, right? Got it. So, just to follow up, this 18 crore is the only number which is coming in to the other income because, you know, sequentially, we have seen a good jump in the other income from roughly 4-5 crores.

No, 18 crore is basically interest awarded along with the tariff. So, that is added in the other income.

Oh, okay. Got it. That is quite helpful. Yes, thank you. Second question, sir, comes, you know, pertaining to the PPS. So, you know, out of 380 megawatts of PPS that we already have in place, what megawatt capacity would it be, you know, pertaining to SKS? Roughly 200 megawatts, if I'm not wrong?

No, 330 megawatts approximately.

Okay, 330 for SKS. And would you be able to give us a sense on what the tariff would be?

It is in between 5 and 6.

Okay, between 5 to 6. Okay, and the maximum capacity that we are looking for PPS for SKS, is it going to be 400, 500, or are we going to keep something as, you know, Probably open quantity over there as well for sale.

Maximum sellable quantity is 540 megawatt.

Sellable.

Now, if I call, we have to take it to what extent we have to commit.

Oh, okay. Got it. That is helpful. So, one last question I had was, you know, on the mining front, the PPT states that, you know, we are going to be reaching a coal mining capacity of 7.1, which includes a 2.1 from Batunga. My question arises, you know, the 5.5 million ton target that we plan to achieve, what all mines would be there? Is it Gare Palma 4 by 7 is what to be aiming for? And if you could also give me the timeline at which, you know, what procedures will be go from 1.8 to 5? Please.

So, Garakalma 4 by 7 is 1.8 million tons.

Yes.

0.6 million tons will be from Shapur West. Shapur West. Okay. 0.6 million will be from Sindhuri approximate. This is provisional because it is under exploration. That may change. But assuming on the initial side, 0.6 and 2 million will be from 4 by 5.

Okay. Got it. And did not, we didn't have a plan.

In our presentation also, in our presentation, slide number 26, all details are made available.

Yes, yes, no, no, that I'm aware of. I wanted to, you know, get a sense of, because we were planning to expand Gare Palma 4 by 7 from 1.8 to 5. I just wanted to get a sense of, you know, how that expansion is going to take place.

No, as of now, we are not considering in the immediate future, because we have got new mines with a better quality of coal, as compared to the Karakalma 4x7. So, for the time being, we are focusing on the new mines.

Okay, and these new mines will be operational only post FI28, right?

No, but Shapur will start by end of current financial aid, by end of current financial aid, FI27.

Okay, and the coal from Shapur West will be usable for our FKF power plants or?

No, that will be for our Sponjava and Ferrolius plant because they will be high-grade coal. For power plant, we don't require high-grade coal.

Okay.

Just to clarify, Manav, all the new mines, they are all high-grade coal mines. Okay. And Shapur is, like I already told, starting in the current financial year, and Bharatunga, we will open in the next financial year, end of next financial year.

Okay. Thank you so much, Neelaji. That's quite helpful. Yeah. Thank you.

Before we take the next question, we would like to remind participants that you will press star and want to ask a question. The next question is from the line of Bhitika Rathaus from NG Security. Please proceed.

Hi, Pankaj, sir. Could you share the latest... Hello?

Yes, we can hear you.

Hi, Pankaj, sir. Could you share the latest update on the environmental clearance for the 600-megawatt brownfield extension for SKS? And when do you expect construction to commence?

So, the study that is required to

submit our TOR is already over. We are in the final stages of making TOR, and as soon as we submit it, maybe in another three months, they will accept it, looks like. And then maybe we have to go for a public hearing and post-public hearing. So maybe we have another six months to eight months to get our final environment clearances. And post that, we'll be able to, in this six to eight months, we'll appoint a consultant also for the same. And then all the procedures will start.

Okay, that was helpful.

Thank you. The next question is from the line of Rajesh Vandari from the Cora Engineer. Please proceed.

Good afternoon, sir. This new plant, sir, I will continue to do the question. When can we expect it to complete the power generation? Sir, last call, we are expecting to complete by FY31.

Oh, FY31.

Yes. So, then we expect our turnover to be more than double, sir? Should be by the time.

Thank you. The next question is on the line of Ashish from Bananda. Please proceed.

Yes. So, my question was regarding the 16th project.

So, that was disrupted due to the transmission line. So, has that project normalized post the restoration of the transmission line?

And also, do you affect any residual impact during Q2? Do you expect residual impact on K2? No, sir. It doesn't look like it.

Okay. That's it. That would be it.

Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. Participants who wishes to ask a question, may please press star and 1 at this time. The next question is from the line of Ashwini from Spin and Venue. Please proceed.

Hi, good afternoon.

I just had one question. Steel prices remained range-bound during this quarter, while ferro-alloy prices had improved modestly. So, how do you see the pricing environment evolving in the second half of FY27?

So both steel and ferrolois prices, they look, and they, like we personally believe that they will be stable, and the margins may look to be a little more decent in terms of ferrolois, and steel, it looks that it will be stable. And if so, that we have a complete settlement in the West Asia region, we might see prices also going up, because there will be demand pickup and more stable production centers in West Asia region as well.

Okay, understood, understood.

Also, I had one more question. What were the specific right-of-way challenges for the 50-megawatt solar project, and is there any execution risk beyond the revised commissioning timeline?

Yeah, hello, ma'am. There is a railway line coming in that region for which they are acquiring a lot of land. So, we assume it has been notified already in that area. They are acquiring land, and I think so in next one to two months, we should get permission from the railways for the same.

Okay, okay. One last thing. I wanted to understand, like, guidance for PAT and EBITDA for FY27, if you could just. Help with that as well?

Generally, we don't give any forward guidance. We have given the industry scenario and our positions have already stated the current period, current quarter prices are also better. As stated in our opening address also, July prices in the power have been better. So, we are in a volatile market. So, giving any guidance on the specific numbers is not advisable.

Okay, okay. Understood. Thank you so much.

Thank you. The next question is from the line of Vishal Patel from Patel Investment. Please proceed.

Hello. Firstly, sir, congratulations on good set of numbers, and thank you for the opportunity. So, I have a couple of questions. First is, excluding the impact of one-off items during quarter one, How should we think about the normalized quarterly bid-run rate over the balance of the FI-287 as operational?

So, second quarter is definitely better because of hydro generation, and we, as stated, power prices are better, have been better in July at least, water has already gone up. Go on. As I get last case, 4 rupees, 20 pesa. This year, it was 5 rupees in IEX itself. So, we expect the power prices to be better. Beyond that, it's very difficult to comment on the profitability side. Otherwise, as I already stated, with the commissioning of the 30 megawatt power, our steel volumes will also go.

Okay. Sure. So, my second question is, with improving power demand and additional PPA, how do you see PLFs and merchant realization evolving over the next few quarters?

PLF should definitely, if you see PLF at the annual level, PLF for the whole year for IPP shall be better than the previous year. This is what we expect. Last year, I think we had 415 crore units or so. This time, we should be able to cross that. It's a reasonable margin.

Okay, sir, could you quantify a little bit about this? Pardon? Could you quantify as in just surpass or like with a healthy growth?

As I stated, in case of IPP, last year we had generated about 415 crore of units. This year's generation will be better than the previous year. Okay. And in case of K3 power, also with the commissioning of the 30 megawatt new generator, our capacity utilization will be better as compared to the previous year. In case of hydro, it depends solely on the rainfall and age of June. Our generation was almost 8 power in the previous year.

Okay, sir. Sure, these answers my questions. Thank you so much.

Thank you. The next question is from the line of Deepika Rathor from SG Securities. Please proceed.

Hello. So, sir, with most of your major projects progressing as planned, what do you see as the biggest execution risk to achieving your FY30 growth roadmap?

As of now, there is no material risk we see, except there may be slight here and there because of the regulatory upwards, otherwise more or less the things are moving as what we have planned.

Okay. Okay. Yeah. This answers my question. Thank you so much.

Thank you.

The next question is from the line of Reena Kaur from Star Lome Investments.

Hello. Yes, ma'am. Thanks a lot for the opportunity. Hi. So, I just had two questions. One was now, now since everything is on track, like the 30-megawatt turbine replacement is commissioned, the Sitkim Hydro project resumes normal operations, and the maintenance shutdowns have also concluded. What do we expect earnings in Q2 with the coming half yearly for FY27?

We don't give any forward-looking profitability because it depends on a variety of factors. Rainfall data, power demand supply, there are multiple. And in case of steel also, prices are volatile because of the West Asia developments. So giving any specific number will be very difficult. But we have already stated on the operational front, we have already clarified, operationally, it should be better. This is what we can tell.

Okay. And also on the steel prices, the steel prices remain range-bound during the quarter, while pero-alloy prices improve modestly. So, going forward, how do you see the pricing environment evolving in the second half of S527?

The prices will remain stable for both ferrolois and steel. And in fact, the margins may be a little higher in the ferrolois segment as we are seeing some softening of raw material prices. And for steel, I think once the West Asia matter is completely settled and they have a peace accord which is in reality in place, then we might see some uptick in the steel pricing as well.

Okay, great.

Plus, overall, the steel demand looks to be very good because of domestic developments as well. We have very strong and robust domestic demand, and with new developments of data centers and many other infrastructure projects, especially after monsoon, we see that the prices go up.

Understood, understood. Got it. Thanks a lot, sir. The thoughts were my thing.

Thank you. Before we take the next question, we would like to remind participants that you may press star and want to ask a question. The next question is from the line of Mun from Sunidhi Investments. Please proceed.

Hey, hi. Hi, sir. Thanks for the opportunity for giving this call. So, I wanted to ask you on the Arunansha Rajesh Arunansha project. So, actually, most of the approval has been repeated for 66 MW. So, when do you expect construction to begin, and what do you think will be expected assignment for it?

So, we are undergoing all the drilling and soil investigation, and we have also appointed a consultant. So, as soon as those datas are available, Detail Engineering will come in.

Do you expect from this year or from the beginning of the year? This year itself. This year itself. This year itself. Right. Okay. I think that's pretty cool. Thank you.

Thank you. The next question is from the line of Priyansh, an investor. Please proceed.

Mr. Priyansh, your line has been unmuted.

You may proceed with the question.

Hello. Yeah, I'm sorry. Thank you for having me. I'm sorry if this question has been asked already, but I wanted to know that regarding the transmission tower that was recently lost, what is the loss that has been incurred in electricity reservation pertaining to this? And consequently, what is the additional cost that was incurred to build it again? And are there any, let's say, steps in place to prevent this from happening again?

There is no material cost incurred on the restoration of the tower, terminal cost is incurred, and most of that will also be covered except the minimum excess loss that will be covered through insurance, yes, but whatever generation we have lost for a few days, that was the real loss what we have incurred, which is already covered in the first quarter, broadly, because 660 started again. So, there is an impact of five-day generation in case of July. Otherwise, everything is already covered, and the amount is not substantial. Restoration cost is negligible, and that is also fully covered in the insurance.

Okay. Got it. Thank you. And my second question was regarding the Mineral Wool project. What was the revenue of the Mineral Wool, and what is the sales and EBITDA target of Mineral Wool for the Q2 And the full financial year, FY27.

Manish, can you repeat the question, please?

Sure. My second question is regarding the Mineral Wool project. So, what was the revenue of Mineral Wool, and what is the sales and EBITDA target for the same for Q2 and the full financial year, FY27?

So, we have started and we've been ramping up our production in the mineral wool. And in mineral wool, we are now touching almost 60-65% of our capacity. And once we achieve the full capacity in the coming year, in the next three to six months, we'll be achieving that full capacity. We should be able to give out the exact numbers. Right now, we are still identifying a few issues, and we are trying to resolve those issues. So right now, the project is not making any profits at the moment.

Got it. But is it making sales or not at this moment?

Yeah, yeah, we are doing sales. There is a huge demand. There is a huge demand, and we are making good sales. In fact, we are lagging in sales. The demand is more, and our production is not ramping up Due to certain imported equipments and machineries, which are stuck due to West Asia prices and all. But we should be getting that in order, and probably in the next six months, we should be achieving full production.

Okay, but do we have any revenue figures right now?

We are expecting 27, for the year 27, we should be achieving around 90 cross.

90, okay. And for Q2?

For Q2, it's very difficult to come in right now.

Okay. So, the projection is the capacity utilization should ramp up from

the next two quarters, and we should be able to achieve in FY27 anywhere between 90 to 110 crores.

Thank you, everyone. That was the last question. Thank you, everyone. Thank you, management speaker. Thank you for joining us, and you may now disconnect your line.

Thank you.