IRM Energy Q2 profit doubles year on year to Rs 25.426 crore

IRM Energy Limited (IRM Energy) reported consolidated profit after tax of Rs 25.426 crore for the quarter ended September 30, 2026, compared with Rs 12.556 crore a year earlier. Revenue from operations increased to Rs 363.608 crore from Rs 281.782 crore, although profit declined from Rs 33.809 crore in the preceding June 2026 quarter.

How did IRM Energy perform in the September 2026 quarter?

IRM Energy increased revenue and profit year on year in the September 2026 quarter, while profit declined sequentially. Revenue from operations rose 29% to Rs 363.608 crore from Rs 281.782 crore in the quarter ended September 30, 2025, and total income reached Rs 368.323 crore, against Rs 287.309 crore a year earlier and Rs 360.027 crore in June 2026.

Total expenses increased to Rs 333.113 crore from Rs 268.355 crore a year earlier, while profit before tax rose to Rs 35.210 crore from Rs 18.954 crore. Purchases of natural gas were Rs 236.560 crore, excise duty was Rs 29.701 crore and other expenses were Rs 42.039 crore during the latest quarter.

IRM Energy's share of losses from joint ventures and associates narrowed to Rs 0.406 crore from Rs 1.637 crore a year earlier, but remained a charge against consolidated profit. Total comprehensive income was Rs 25.360 crore after an other comprehensive loss of Rs 0.066 crore, compared with total comprehensive income of Rs 12.546 crore in the September 2025 quarter.

Why did IRM Energy's profit fall from the June 2026 quarter?

IRM Energy's sequential profit decline reflected expenses rising faster than income between June and September 2026. Total income rose by Rs 8.296 crore, while total expenses increased by Rs 20.488 crore, causing profit before tax to fall by Rs 12.192 crore to Rs 35.210 crore and profit after tax to decline by Rs 8.383 crore.

Natural-gas purchases increased to Rs 236.560 crore from Rs 222.104 crore in June 2026, excise duty rose to Rs 29.701 crore from Rs 28.897 crore, and other expenses rose to Rs 42.039 crore from Rs 36.740 crore. Depreciation and amortisation fell to Rs 13.808 crore from Rs 16.419 crore, while finance costs decreased to Rs 3.017 crore from Rs 3.231 crore.

Tax expense declined to Rs 9.378 crore from Rs 13.083 crore in the preceding quarter, comprising current tax of Rs 5.864 crore and deferred tax of Rs 3.514 crore. Basic and diluted earnings per share, which were not annualised for the interim period, were Rs 6.19, compared with Rs 8.23 in June 2026 and Rs 3.06 a year earlier.

What do IRM Energy's cash flow and balance sheet show?

IRM Energy generated net operating cash of Rs 125.484 crore in the half year ended September 30, 2026, compared with Rs 76.369 crore in the corresponding prior-year period. Cash generated from operations before tax was Rs 129.985 crore, while income taxes paid, net of refunds, were Rs 4.501 crore.

The half-year operating cash movement included a Rs 10.065 crore increase in trade receivables and a Rs 0.877 crore increase in inventories. Trade payables increased by Rs 7.889 crore, other current financial liabilities rose by Rs 10.196 crore, and other current liabilities increased by Rs 10.651 crore.

Investing activities used Rs 56.887 crore in the six months ended September 30, 2026, compared with cash generated from investing activities of Rs 209.718 crore in the prior-year period. IRM Energy spent Rs 136.487 crore on property, plant, equipment and intangible assets, including capital work-in-progress and capital advances, while financing activities used Rs 10.861 crore.

Cash and cash equivalents closed at Rs 96.984 crore on September 30, 2026, up from Rs 39.248 crore at March 31, 2026. Total assets increased to Rs 1,358.244 crore from Rs 1,295.340 crore, total equity rose to Rs 1,050.486 crore from Rs 997.531 crore, and total liabilities increased to Rs 307.758 crore from Rs 297.809 crore.

What IPO deployment and receivables matters did IRM Energy disclose?

IRM Energy had utilised Rs 358.677 crore of Rs 495.759 crore in net initial public offering proceeds as of September 30, 2026, leaving Rs 137.082 crore unutilised. The remaining amount is allocated to capital expenditure for the city gas distribution network in Namakkal and Tiruchirappalli, Tamil Nadu, and the board extended the utilisation timeline to March 31, 2028 on August 6, 2026.

IRM Energy's cumulative redeemable preference-share investment in Venuka Polymers Private Limited was Rs 3.735 crore and had become due for redemption by September 30, 2026. Accrued dividends stood at Rs 0.969 crore, including Rs 0.197 crore for the first half of FY2027, and the board approved an extension to the redemption timeline on October 30, 2026.

A separate preference-share investment in associate Farm Gas Private Limited was Rs 4.450 crore and had also become due for redemption. Farm Gas Private Limited repaid a Rs 1.100 crore first tranche on October 29, 2026, while Rs 0.467 crore of accrued dividend was received on October 1, 2026; the board also approved conversion of a Rs 10.216 crore balance into a loan from July 1, 2026 at 9% per annum.

IRM Energy also disclosed a principal loan of Rs 9.547 crore, plus interest and other receivables, from joint venture Ni-Hon Cylinders Private Limited. It recognised an impairment provision of Rs 5.094 crore during the year ended March 31, 2026 and initiated legal proceedings during the current financial year, including Commercial CMA 59 of 2026 and Arbitration Petition No. 179 of 2026.

Conclusion

IRM Energy's September 2026 results show a year-on-year increase in consolidated earnings, with profit after tax rising to Rs 25.426 crore as revenue from operations reached Rs 363.608 crore. The quarter-on-quarter comparison differed because the Rs 20.488 crore increase in expenses exceeded the Rs 8.296 crore increase in total income, while half-year operating cash flow rose to Rs 125.484 crore.

The next disclosed points to watch are utilisation of the remaining Rs 137.082 crore of IPO proceeds by March 31, 2028, Farm Gas Private Limited's planned payment of Rs 1.633 crore by quarters ending September 2027, and the approved extensions for preference-share redemption. The outcome of recovery proceedings involving Ni-Hon Cylinders Private Limited also remains unresolved.