IRM Energy Limited — Important, 10-02-2025: General Updates

**Financial Highlights:** For Q3 FY25, IRM Energy reported consolidated revenue from operations of Rs. 2,733 million, showing an 11% year-on-year increase. However, operating EBITDA dropped by 47% compared to Q3 FY24, landing at Rs. 290 million, largely due to lower allocation of APM gas and higher operational expenses. The profit for the period slipped to Rs. 101 million, down from Rs. 238 million in the same quarter last year. For the nine months ending December 31, 2024, revenue reached Rs. 7,674 million, reflecting an 11% increase year-on-year.

**Strategic Initiatives and Growth Drivers:** The company continued its expansion, adding 1,343 customers in Q3 FY25, including CNG stations and industrial clients. Capex for the nine months totaled Rs. 905.21 million, supporting the growth of its City Gas Distribution (CGD) infrastructure across four geographical areas.

**Business Developments:** IRM Energy's CNG volume achieved a record 28.25 mmscm in Q3 FY25, up 6% from the previous year. Additionally, the company redeemed unlisted preference shares, enhancing its capital structure.

**Market Position and Competitive Advantage:** IRM Energy's strong presence in CGD infrastructure, with significant market share in Banaskantha and Fatehgarh Sahib, positions it well for future growth despite current volatility in revenues.

**Investor Implications:** As IRM Energy navigates these challenges, investors should monitor its ongoing operational adjustments and customer acquisition strategies. The positive volume growth in CNG suggests potential for recovery, although cost pressures remain a concern. Hold positions for potential long-term appreciation as market conditions stabilize.