BGRENERGY - BGR Energy Sys.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for H1 FY26 was INR 171.86 Cr, representing a marginal growth of 0.86% compared to INR 170.41 Cr in the same period last year. Standalone revenue for H1 FY26 was INR 55.28 Cr, down from the previous full year's INR 100.81 Cr.
Geographic Revenue Split
Not disclosed in available documents.
Profitability Margins
The company is experiencing severe negative margins. Consolidated H1 FY26 net loss was INR 324.75 Cr on revenue of INR 171.86 Cr. Standalone net loss for H1 FY26 was INR 9.79 Cr, with a net profit of INR 0.52 Cr in Q2 FY26.
EBITDA Margin
Not explicitly disclosed, but standalone operating profit before exceptional items for Q2 FY26 was INR 0.519 Cr, a significant improvement from a loss of INR 10.31 Cr in Q1 FY26.
Capital Expenditure
Standalone purchase of fixed assets was INR 0.298 Cr in the previous year; no capital expenditure was reported for H1 FY26.
Credit Rating & Borrowing
Not disclosed in available documents; however, standalone finance costs were reported as zero for H1 FY26.
Operational Drivers
Raw Materials
Not disclosed in available documents.
Import Sources
Not disclosed in available documents.
Key Suppliers
Not disclosed in available documents.
Capacity Expansion
Not disclosed in available documents.
Raw Material Costs
Not disclosed in available documents.
Manufacturing Efficiency
Not disclosed in available documents.
Logistics & Distribution
Not disclosed in available documents.
Strategic Growth
Expected Growth Rate
Not disclosed in available documents.
Growth Strategy
The company is focused on resolving internal control weaknesses and managing its key subsidiaries, BGR Boilers and BGR Turbines, to stabilize operations. Growth is contingent on resolving audit qualifications and addressing the 'going concern' uncertainty.
Products & Services
Boilers, Turbines, and Engineering, Procurement, and Construction (EPC) services for the power and energy sectors.
Brand Portfolio
BGR Energy, BGR Boilers, BGR Turbines.
New Products/Services
Not disclosed in available documents.
Market Expansion
Not disclosed in available documents.
Market Share & Ranking
Not disclosed in available documents.
Strategic Alliances
Joint Venture with Mecon-GEA Energy System (India) Limited, which reported a loss of INR 0.21 lakhs for the year ended March 31, 2025.
External Factors
Industry Trends
The power and energy infrastructure sector remains capital-intensive with long project cycles. The company is currently struggling to maintain pace with industry growth due to internal governance and financial distress.
Competitive Landscape
Not disclosed in available documents.
Competitive Moat
The company's moat in specialized boiler and turbine manufacturing is currently weakened by severe financial losses and audit qualifications that cast doubt on its 'going concern' status.
Macro Economic Sensitivity
Not disclosed in available documents.
Consumer Behavior
Not disclosed in available documents.
Geopolitical Risks
Not disclosed in available documents.
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act 2013 and SEBI (LODR) Regulations 2015. Auditors issued a modified opinion due to non-compliance with timely auditing of subsidiaries.
Environmental Compliance
Not disclosed in available documents.
Taxation Policy Impact
Standalone tax expense was zero for H1 FY26 due to ongoing losses.
Legal Contingencies
Auditors have expressed 'significant doubt' on the Group's ability to continue as a going concern. Material weaknesses in internal financial controls (IFC) were identified at BGR Turbines Company Private Limited regarding inter-company receivables.
Risk Analysis
Key Uncertainties
The primary risk is the 'going concern' uncertainty and the adverse effect of material weaknesses in internal financial controls, which could lead to undetected fraud or error.
Geographic Concentration Risk
Operations are primarily based in Andhra Pradesh (Registered Office) and Chennai (Corporate Office).
Third Party Dependencies
High dependency on management representations for unaudited subsidiaries (Sravanaa Properties, BGR Boilers, BGR Turbines) which represent assets of INR 944.31 Cr.
Technology Obsolescence Risk
Not disclosed in available documents.
Credit & Counterparty Risk
Significant credit exposure exists in inter-company receivables; BGR Turbines failed to effectively determine expected credit losses from the Holding Company.