- Siltara furnace shutdown for 53 days affects output
- Improved plant utilisation to aid production recovery
Sarda Energy & Minerals Ltd (SEML) reported ferro alloys production of 41,648 t in Q1FY’27, down 18% y-o-y from 50,981 t in Q1FY’26. Sales also declined 13% y-o-y to 42,274 t from 48,342 t. Despite the quarterly slowdown, the company maintained a positive long-term trajectory, with FY’26 ferro alloys production rising to 0.20 mnt, compared with 0.183 mnt in FY’25.
Furnace refurbishment reduces production capacity: Production was impacted as one furnace at the company’s Siltara plant remained shut for 53 days for refurbishment. The planned overhaul temporarily reduced operating capacity during the quarter, leading to lower output.
Captive power outage disrupts operations: A 23-day maintenance shutdown at the company’s Vizag captive power plant affected electricity availability for ferro alloys production, weighing on overall plant utilisation during Q1FY’27.
Plant upgrades temporarily affect manufacturing: The company also undertook the planned replacement of a 30 MW captive power unit, along with improvement works across its steel and ferro alloys facilities. These maintenance activities temporarily disrupted production but are expected to enhance operational efficiency going forward.
Production recovery expected from second quarter: Management expects ferro alloys production to recover from Q2FY’27 as the maintenance activities have been completed. The 30 MW captive power unit is scheduled to resume operations from August 2026, supporting higher plant utilisation and a return to normal production levels.
Long-term growth outlook remains intact
While Q1FY’27 was affected by temporary operational disruptions, SEML’s integrated mining and captive power assets, coupled with its expansion strategy and net debt-free balance sheet, are expected to support stable ferro alloys production over the medium term.
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