EKI Energy Services Q3 FY26: Revenue down, losses return

What EKI reported for Q3 FY26

EKI Energy Services Limited released its unaudited financial results for the quarter and nine months ended December 31, 2025. The company reported a sharp drop in revenue compared with the same quarter last year, along with losses on a consolidated basis. The results were reviewed by the Audit Committee and approved by the Board of Directors on January 22, 2026, at Indore, Madhya Pradesh. The company also filed a newspaper publication confirmation with BSE Limited on January 23, 2026. The notice stated that the results were published in “Free Press - English Edition” and “Choutha Sansaar - Hindi Edition.”

Standalone Q3 FY26: revenue falls to ₹15.81 crore

For Q3 FY26, EKI reported standalone total income from operations of ₹15.81 crore, compared with ₹62.41 crore in Q3 FY25. On profitability, standalone profit before tax came in at a loss of ₹0.79 crore versus a profit of ₹6.15 crore in the year-ago quarter. Profit after tax for the quarter was ₹0.04 crore, compared with ₹4.69 crore in Q3 FY25. The company’s standalone basic EPS for the quarter was ₹0.01, with diluted EPS also at ₹0.01.

Consolidated Q3 FY26: larger losses despite similar revenue trend

On a consolidated basis, total income from operations for Q3 FY26 stood at ₹16.77 crore versus ₹67.46 crore in Q3 FY25. Consolidated profit before tax was a loss of ₹5.43 crore, compared with a profit of ₹3.01 crore in the corresponding quarter last year. Consolidated profit after tax was a loss of ₹4.63 crore, versus a profit of ₹1.53 crore in Q3 FY25. For the quarter, consolidated basic EPS was ₹(1.68) and diluted EPS was ₹(1.62). The reported numbers indicate that profitability moved in opposite directions between standalone and consolidated operations, even as revenue declined sharply in both.

Nine-month FY26: small standalone profit, consolidated loss

For the nine months ended December 31, 2025, the company reported standalone total income from operations of ₹64.90 crore. Consolidated total income from operations for the same period was ₹66.77 crore. Standalone profit after tax for the nine-month period was ₹0.06 crore. Consolidated operations reported a net loss of ₹8.79 crore for the nine months. The nine-month set of numbers shows that the consolidated drag persisted beyond a single quarter, while standalone profitability remained marginal.

Quarterly trend visible in standalone net sales and operating profit

The standalone quarterly table shared in the data highlights volatility in net sales and operating profit across recent quarters. Net sales moved from ₹62.41 crore (Dec 2024) to ₹14.58 crore (Mar 2025), ₹14.73 crore (Jun 2025), ₹34.35 crore (Sep 2025), and ₹15.81 crore (Dec 2025). Operating profit for those quarters was ₹7.36 crore (Dec 2024), ₹3.33 crore (Mar 2025), ₹-2.45 crore (Jun 2025), ₹3.28 crore (Sep 2025), and ₹-0.31 crore (Dec 2025). Other income remained material in multiple quarters, including ₹6.56 crore in Dec 2025 and ₹6.41 crore in Jun 2025. Interest expense varied, including ₹0.58 crore in Dec 2024 and ₹0.53 crore in Dec 2025.

FY25 annual performance: revenue and operating profit swing

The annual profit and loss table for the year ended March 2025 shows net sales of ₹164.61 crore, against ₹258.85 crore in March 2024 and ₹1,258.41 crore in March 2023. Operating profit for March 2025 was ₹12.01 crore, compared with an operating loss of ₹129.54 crore in March 2024. Other income rose to ₹16.92 crore in March 2025 from ₹10.56 crore in March 2024. Interest expense for March 2025 was ₹0.84 crore, down from ₹2.78 crore in March 2024. The detailed statement in the data also shows profit before tax of ₹16.50 crore and profit after tax of ₹15.26 crore for FY25.

Key filings and disclosures: audit emphasis and demerger plan

In the audit report excerpt included in the data, the auditor issued an opinion that the standalone financial statements for the year ended March 31, 2025 give a true and fair view in accordance with Ind AS. The auditor also included an “Emphasis of Matter” section referencing two items. First, it noted that a previous auditor filed a report under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 during the audit for the year ended March 31, 2023, and the matter was stated to be sub-judice and under consideration with the MCA. Second, it referenced a scheme of arrangement in the nature of a demerger approved by the Board on February 10, 2025, with effect from January 1, 2025 (or another date as fixed by NCLT), and stated that NCLT approval was awaited and the FY25 standalone financials were prepared without considering the scheme’s effect.

Key audit matter: carbon credit inventory valuation

The audit section shared in the data identifies “Valuation of Carbon Credit Inventory” as a key audit matter. The description highlights that inventory is measured at lower of cost or net realisable value, and that carbon credit valuation involves specialised inputs such as verification norms, market pricing, regulatory compliance, vintage, and timing of recognition. The audit procedures listed include evaluating valuation methodologies and assumptions, testing transactions for completeness and accuracy, assessing registry or platform records for existence and ownership, considering regulatory compliance impacts, and reviewing impairment or write-down assessments. The disclosure underscores that carbon credits are a significant balance sheet item requiring high auditor judgment.

Market snapshot and TTM metrics disclosed

The data includes a market capitalisation of ₹269 crore. It also lists trailing twelve-month (TTM) revenue of ₹84.34 crore and TTM earnings of ₹-15.45 crore, alongside a net profit margin of -18.31% and gross margin of 29.10%. TTM cost of revenue is listed at ₹59.80 crore and gross profit at ₹24.54 crore, with other expenses of ₹39.99 crore. The debt-to-equity ratio shown is 0.2%, and EPS is listed as -5.58 (TTM). The stock screen snippet in the data also shows a previous close of ₹95.87 and another price point of ₹95.02.

Why the numbers matter for investors tracking EKI

The quarter’s results highlight a steep year-on-year contraction in operating income, which typically has an outsized impact on margins for businesses with meaningful fixed cost and overhead structures. The standalone quarterly table also shows that operating profit turned negative again in Dec 2025, after being positive in Sep 2025. Other income appears significant in several quarters, which can change how investors interpret core operating performance when operating profit is thin or negative. The contrast between standalone and consolidated profitability is also notable, with consolidated losses materially larger in Q3 FY26.

What to watch next

The company has already placed the detailed unaudited financial results on BSE and its website (www.enkingindia.org), as per the data provided. Investors will likely monitor updates on the proposed demerger scheme that is awaiting NCLT approval, since the FY25 standalone accounts were prepared without factoring its effect. Regulatory and audit-related disclosures around the earlier Rule 13 matter, stated as sub-judice and under consideration with MCA, also remain part of the public record referenced in the audit report. Future quarterly filings should clarify whether recent revenue levels and the standalone-versus-consolidated gap in profitability persist.