Good evening, everyone, and thank you for joining us today to discuss Q3 and nine months FY26 business performance of SEML. We have with us Mr.

Pankaj Sarda, Managing Director, Mr. Manish Sarda, Deputy Managing Director, Mr.

Padam Kumar Jain, Director and Chief Financial Officer, and Mr. Nilay 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. The company undertakes no obligation to update any forward-looking statements 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 on the stock exchange and company's website. I now hand over the conference call to Mr.

Pankaj Sarda. Thank you and over to you, sir.

Thank you, Mansi. Good evening, everyone.

For the nine-month period ended December 2025, the company has delivered a robust operating performance, reflecting steady execution across our integrated energy plus minerals platform. Our focus on scaling the energy business, strengthening integration across mining, and maintaining discipline in metals has continued to support stability and predictability across cycles.

In line with this long-term strategy, the third quarter posted steady performance, barring certain planned and timing-related factors. The quarter was impacted by the annual maintenance shutdown of the IPP, the shutdown of one captive power unit for equipment replacement, and a period of subdued metal and energy prices.

These were largely anticipated operational events, and our integrated model helped absorb the impact while maintaining stability across businesses. Operationally, production across key assets remained broadly stable.

Thermal power generation at IPP and Raigarh benefited from improved plant reliability and fuel availability, although planned maintenance affected output during the quarter. Hydropower generation followed normal seasonal patterns.

For the nine-month period, hydropower generation increased by 28% year on year to 621 million units, supported by above-average monsoon conditions and the commissioning of the 24.9 megawatt Rehar hydropower project. For the Rehar project, we have signed a 14-year power purchase agreement with Chhattisgarh State Power Distribution Company Limited.

The tariff has been fixed at Rs 7.42 per unit, providing long-term revenue visibility and further strengthening the quality of our energy portfolio. Approval to enhance the capacity of the Gare Palma 4 by 7 coal mine from 1.68 million tons to 1.8 million tons is at the final stage and is expected shortly.

We remain confident of achieving the enhanced output within the current financial year. Development of the Sahapur West high-grade coal mine is progressing as scheduled, with commissioning targeted before the end of the next financial year.

Approval processes for the Gare Palma 4 by 5, Bartunga, and Senduri coal mines are ongoing. Within our power portfolio, captive solar power, 50 megawatt, commissioning of the 50 megawatt captive solar power project is expected in the first quarter of the next financial year.

Work is progressing on schedule regarding 30 megawatt TG set replacement. Work is progressing on schedule with commissioning expected by mid-FY27.

Shutdown from December temporarily affected steel production at Raipur. We are also pursuing approvals for expansion of our existing 600 megawatt IPP thermal power project.

As an update on the ongoing litigation matters regarding SKS Power acquisition, the appeals filed by the unsuccessful resolution applicants have been heard by the Hon'ble Supreme Court and the matter has been reserved for order. Coming to the financial performance: consolidated revenue for Q3 FY26 stood at Rs 1,360 crores, reflecting the impact of planned shutdowns and weaker price realizations.

EBITDA increased to Rs 395 crores compared to Rs 368 crores year on year, driven largely by the energy segment. Consolidated PAT stood at Rs 190 crores.

For the nine-month period, PAT increased by 59% to Rs 954 crores. Our balance sheet remains strong, with negligible net gearing and net debt to EBITDA well below 1x.

Consolidated net debt as of 31st December 2025 was below Rs 500 crores, significantly reduced from approximately Rs 1,500 crores as of 31st March 2025. Liquidity remains robust.

On a standalone level, the company remains cash positive. With that overview, I now hand over to Mr.

Manish Sarda to discuss the industry overview and outlook. Over to you, Mr.

Manish.

Thank you, Pankaj, and a good evening to everyone on the call. I will briefly touch upon the broader industry environment and the demand outlook across steel, power, and related commodities.

During calendar year 2025, India stood out positively among global steel markets. Crude steel production in India grew by over 10%, even as China and several global markets recorded contraction.

While China's steel production fell to a six-year low, exports increased by 7.5% to around 119 million tons, continuing to influence global trade flows and pricing dynamics. India's steel consumption reached approximately 160 million tons, supported by sustained infrastructure spending and steady manufacturing activity.

The imposition of safeguard duties has meaningfully altered trade dynamics, turning India back into a net exporter after six consecutive quarters of net imports. Steel prices, which had touched the multi-year lows earlier in the year, recovered sharply towards the end of December and have strengthened by around 10 to 15%, reflecting improving sentiment and tighter domestic supply conditions.

From a policy perspective, the Union Budget's allocation of Rs 20,000 crore toward carbon capture, utilization, and storage is a significant development, expected to support the adoption of greener technologies across energy-intensive sectors such as steel and cement, and reinforces a long-term policy commitment towards sustainability and green transition. Turning to the power sector, demand during the quarter was largely flat on a year-on-year basis.

Thermal plant utilization, which had softened since April, showed signs of improvement towards December. Power prices on the exchange moderated with IEX average prices at around Rs 3.33 per unit, compared to 3.79 per unit last year.

I'll continue with that. There might be some line issue in the Manish Sarda ji's line.

Nilay, can you hear?

Are you audible?

Hello? Am I audible?

Yes, you are audible.

Yeah. Coal index prices also declined modestly during the period, contributing to a relatively benign fuel cost environment.

Am I audible?

I can hear you clearly.

Okay. Fertilizer export in Q3 went up from 23,256 metric tons to 33,272 metric tons year on year, registering a growth of 43% for nine-month period.

It remained near flat. Looking ahead, infrastructure spending policy continuity and the ongoing expansion of India's manufacturing bases are expected to support economic activity and steel demand.

Recent firmness in commodity and ferrous metal prices points to improving fundamentals, while power prices have also shown signs of recovery since December. To add on the power side, we have secured 200 megawatt of medium-term and 100 megawatt of long-term offtake to our IPP, providing stability to cash flows.

In addition, the signing of free trade agreements with regions such as the EU, the US and other markets is expected to support exports and enhance overall economic activity over the medium term. That concludes our overview, the industry, environment and outlook.

Thank you.

Yes, please go ahead.

Hi. Good evening and thank you so much for the opportunity.

Sir, first of all, I wanted to ask a bookkeeping question that was could you give me what was the CPP production and sales units for this particular quarter?

Pardon?

The captive power plant that we have. I know

you can find it in the investor presentation that has been uploaded on the website. You will find the data.

Yes, we have the IPP data over there, but not the CPP one.

CPP, nothing very meaningful.

On the production side as well, because there was a plant shutdown, I believe—

Three crore million units and sales was 12 million units during the quarter.

Okay. That is correct.

For our IPP, what was the average tariff that we got for this particular quarter?

Average tariff?

Yes.

It was somewhere in the range of five rupees.

Five rupees, and in the opening remarks you mentioned we are seeing some improvement. How is Q1 shaping up, or Q4 shaping up?

Q4 will be better than this level. It was slightly lower than five rupees, near five rupees, not five rupees.

Now it will be slightly above, but we expect it above five rupees.

Okay. That is quite helpful.

Sir, secondly I just wanted to know about the captive coal mine expansions that we are doing right now, moving from 1.8 to 3 million tons and then to 5.2. I think we had to apply for fresh ECs, right, if I'm not wrong?

We are in the process of that right now?

Right, we are in the process.

What timelines are we looking at for the 3 million ton expansion? FY22?

No, it will take minimum two years, because forest clearance also is there. Okay.

Apart from another

18 months to 24 months period for the final EC to arrive and the production.

Minimum two

years. Got it, yeah.

Thank you. Sir, one question I also had, I think we usually go for the SHAKTI coal, right, when it comes to our—

So

what would be the cost differential between the Shakti coal that we are using versus the captive coal from our Gare Palma mines?

It is almost equivalent, I would say. In fact, our captive coal prices might be ten paisa higher per G.

We can use our captive coal for other purposes, including commercial sales, because the market price of the coal for the immediate other in the power plant are higher than the SHAKTI coal. We have an option to sell the captive coal in the market,

as well as it totally depends on the auction also that is happening in SHAKTI coal. Sometimes we get it at cheaper prices, sometimes the prices are higher.

Sure, sir. One last question, wanted to know, what's the company's take on now doubling the capacity that SKS Power?

How are those talks shaping up? So

we have already signed an MOU with the state government, and we should get the MOU in hand maybe in another one month, and then we'll start all the environment clearances process, etc.

It's going to be sort of a story for three, four years down the line, right? I think all the approvals might take another two and a half to three years.

Would that be the right understanding?

Correct.

Sure. That is quite helpful, and sign back you for more.

Thank you so much.

sir, I am...

yes. अच्छा,

my simple question was that, if you allow, की जो revenue है EBITDA है PAT है, sequentially देखें या YOY देखें, तीनों टीम में, जो last three quarter है, उसमें growth downtrend दिख रहा है. एवं PAT या EBITDA leverage बोलो या PAT leverage बोलो, उसको भी downtrend दिख रहा है.

तो ये क्या वजह रही होगी? What are the reasons, headwind है, या demand में कुछ issue है, या क्या वजह रही होगी?

इसमें, first quarter में जो power की prices, realization है, 2021 is better, thermal power particularly, because गर्मी का season रहता है. That gives above

average realization

in case

of thermal power. Second quarter में hydro का generation ज़्यादा रहता है.

Third quarter ऐसा रहता है जिसमें आपकी power की prices भी कम रहती है और इस बार steel भी पाँच साल के lowest prices में चले गए थे third quarter में. आप देखेंगे तो steel has gone down, bottomed out almost, because पाँच साल के lowest prices में steel आ गई थी.

तो that has an effect, और दूसरा ये था कि third quarter में हमारे एक power plant shutdown में भी था, जिसमें 600 में से 300 megawatt की एक unit बंद रखी. उसके कारण हमारे generation काफी कम हुई है.

तो उसका भी effect है. There are three effects, one is the pricing of the steel, which has gone down.

Second is lower generation of hydropower because of seasonal effect, and third, shutdown of one unit of captive power plant IPP for maintenance, and also one captive power plant unit was also shut down for replacement. तो उसके कारण volume पे भी effect है,

profitability भी कम हुई है third quarter में. Considering this all, we assume, is coming two-three quarters also will be in the same line?

नहीं, यहाँ से... और is there any improvement?

जैसा मैंने बताया, steel में पिछले डेढ़-दो महीने में 10-15% की

price increase आ चुकी है और यहाँ से जैसे-जैसे अब गर्मी बढ़ेगी thermal power price will also go up. Average we are considering कि annual 500 रुपए आना चाहिए, तो जैसे third quarter में नीचे रहता है price, आगे के quarters में better रहेगा, first quarter again will be much higher because गर्मी में you get the maximum price for the power sale.

तो ये सारे factors के कारण यहाँ से जो third quarter से things will improve. मतलब ये जो

current quarter है, से improve करेगा?

Yes. तो अब कैसे, मतलब जो इस बार का जो

scale जो भी बनेगा, suppose

30%, या whatever

scale बनेगा growth का revenue का, तो 2027 को आप कैसे देख रहे हो, इससे positive देख रहे हो या समान देख रहे हो? 2027 positive आएगा.

अच्छा. सर, धन्यवाद, this is from my side.

steel price

improve हो रहा है, हमारा hydropower project भी एक जो July में चालू होता है, उसका भी एक first quarter का additional revenue आएगा. And

power price also because the industrial activity improving, power prices will also move up from here. ओके सर,

thank you. धन्यवाद, this is from my side.

job देने के लिए धन्यवाद.

Thank you.

Good evening sir. Sir, my question was, given that there is heavy cash generation in the company, are you looking for some more inorganic expansion opportunities, or do you focus more on brownfield expansion only for now?

We are looking for both inorganic as well as the brownfield. Brownfield is already whatever we have plants, and there are certainly good brownfield.

We are taking up a few of the greenfield coal mines and greenfield hydropower project. These are the greenfield opportunities.

In addition to that, we are looking for definitely the inorganic opportunities also.

All right, sir. Sir just a follow-up question on that, given that there are so many tailwinds in sectors like nuclear energy, critical mineral mining and battery storage, do you have plans to diversify in any of these sectors?

We are open for the opportunities, and whenever all these mine blocks comes, we do study them as well. If any opportunity comes knocking our door regarding these, we'll have a positive outlook towards these.

Sure, sir, noted. All the best, sir.

Thank you. That is my question.

Thank you.

sir, I want to check with you, if we are on track to achieve the 2,000 crore EBITDA in FY26, what could be the guidance for FY27?

We are in the cyclical industry, generally we don't give advance guidance, but what we foresee, it should be better from 2026, higher than 2026.

Sir, thank you for taking the question.

Hello? Am I audible?

Yeah.

Sir, I wanted to ask you a couple of questions, first being on the planned shutdown. Sir, how long was it for, approximately?

For first around for 40 to 45 days.

Both the plant?

No. The first one unit, that is 300 megawatt of our IPP unit, was in a shutdown for 45 days for planned shutdown for a yearly overhauling, and another 30 megawatt plant turbine was taken on a shutdown on 1st December.

This was a Siltara captive power unit, and it is being replaced with a new turbine, and we'll start the turbine by mid of June.

Mid of June?

Yes.

Okay. Sir, any update on the Supreme Court hearing?

We already covered in our opening address. Hearing is closed and reserved for order.

Sir. Thank you.

These were my questions.

Thank you.

Good evening, sir, and thank you for the opportunity. My first question is regarding SKS power plant.

We had a guidance of 400 crore units of generation, and we are slightly lower in Q3. Are we on track to that particular number for the whole year?

We are on track.

We are on track. Any guidance for next year for SKS generation?

Generation should be slightly ahead of that level.

Slightly ahead of

that level? Yeah.

It should be slightly ahead of that level:

420-430 crore, is that a good number to take?

Maybe 410-420 in between somewhere it should be.

Right, sir. Secondly, we said that the steel prices are starting moving up.

Wanted to know on a quarter-on-quarter basis, at any point to point we had said 10-15% hike. What was the quarter three average, and what could be the quarter four in terms of numbers?

How high it should be?

The quarter three average has been given in our presentation.

Right, sir.

We can see the current price realizations, from there you can consider about 12-15%, depending upon product to product.

Right, 12-15% could be the blended hike from Q3 levels.

Blended.

Yeah. Ultimately,

there are variations. Still India, moving down.

Giving specific percentage, but yes, it should be somewhere in the range of product to product. There are variations.

Say in case of pellet, 10% in case of billet and wire rod, it is in the range of 15%.

Right, sir. What, in case of ferroalloys, in terms of pricing this quarter as compared to last quarter, has the data increased?

Slight improvement, not material.

Slight improvement.

Yes, there is some improvement, but not.

Right, sir. The capex guidance for this year and next year, how much we spend in nine months?

What is the capex we are going to spend, and what is the guidance for FY27? Yes,

spend more than 400 crore for already in the nine months, and what we had given the guidance of 500 to 600 crore, we should be able to comfortably achieve somewhere in the range of 550 to 600 crore approximately. That will be the capex for the FY26.

Similar expenditure, except the inorganic opportunities. For the organic opportunities, what we have already committed, we shall be spending of capex.

Right, sir. Thank you, sir.

This is very helpful, and all the best.

Thank you.

Good evening, sir. I just wanted to ask one question.

When do you plan to build the SKS plant capacity?

Already, as in one of the questions I have answered, we have recently done an MOU with the state government. This MOU copy we'll get in a month or two months' time, and then we'll start the process of environment clearances, which will take another two years.

Immediately we'll then go for placing the orders.

Sure. Thank you so much.

All right.

Thank you, sir. I just had a follow-up.

Earlier energy was a big lever for your growth, and now you're saying that minerals is also going to add value. How will the segment composition and the revenue contribution change?

Will power continue to be 60-61%, will it increase, will it reduce, and minerals will take over? How will it pan out?

Power will remain in the present category, slightly may be adding more value, because ultimately minerals will also get converted into the energy only. Power will remain prominent contributor to our bottom line.

Sir, in the remarks you talked about how you moved the ferroalloy capacity to domestic right now versus exports. Is that going to be the outlook for the rest of the year?

What's the differential in the realization, export versus domestic?

Manish?

Please repeat again. If I'm able to hear you correctly, the question that you have asked that whether the domestic pricing or the export pricing was better?

Ferroalloys, yes. Yeah,

in the ferroalloys, right? On certain grades, like the 70 grade silicon manganese that we produce, we get a better realization, and on certain grades, like 60-14, the domestic market is far better compared to the export markets.

Primarily the pricing remains almost the same. It's only the payment cycles which get impacted in terms of exports, because in the export markets you typically have around 21 days of payment cycles.

So

is that going to be the trend that you'll continue focusing on domestic?

We will be continuously focusing on domestic as well as export markets because we have a very dedicated domestic market and we have a very dedicated export market. We keep a tab on the pricing on a regular basis as to where we get our realizations, which are the best for the company.

There are also angles of what you call continuity of supplies because on certain contracts this cannot be opportunistic. The export markets have to be continuously fed.

No, fair enough, of course. There are some long-term relationships.

Some long-term relationships because it's very difficult to pinpoint a certain contract, because there are certain contracts which you have to maintain for continuity as well.

Understood. Thank you so much.

Thank you.

Thanks to all the participants who have come on the call. To conclude, the quarter reflects steady execution against our strategic priorities, supported by a constructive pricing environment across both energy and metals.

We have continued to make visible progress on our growth initiatives. Gare Palma IV/7 mine is in the final stage of receiving the enhanced capacity approval of 1.8 million tons.

Our solar farm is expected to commission operations in the next quarter, and the Sahapur mine remains on track for commissioning next year. In parallel, we continue to evaluate opportunities in the green power to further strengthen our future-ready portfolio.

Our disciplined approach to deploying surplus cash into diversified long-term growth projects provides strong medium-term visibility and reinforces our commitment to sustainable value creation. Thank you for joining us today.

Should you have any questions, please feel free to reach out to us or to our Investor Relations team. Thank you.