As of Mar 28, 2026, IRM Energy Ltd (LPG Bottling) has a deep value score of 49/100 (rated Average). 1Y return vs Nifty 500: -34%.
Deep value thesis based on recent earnings • Updated Mar 21, 2026
Margin recovery from 8.85% to 11.18% EBITDA coupled with 21% CNG volume growth and debt reduction positions IRM Energy for sustainable profitability as it nears 150 CNG stations.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Mar 21, 2026
Expansion to 150 stations by March 2026 (from 111 in FY25) driving volume scale and margin expansion.
Impact: +₹50 Cr revenue
“Q3 FY26 results show 11 new stations commissioned, targeting 150+ by FY26 end”
Expected clarity on Fatehgarh Sahib industrial volume decline (-7% YoY) by April 2026.
Impact: +₹15 Cr revenue
“Management monitoring pending NGT court order for industrial volume recovery”
Targeting ₹5.25-5.50/scm EBITDA (vs current ₹5.28/scm in 9M) confirming margin recovery.
“9M FY26 EBITDA at ₹5.28/scm, within guidance range of ₹5.25-5.50/scm”
Potential partnership following IOCL DODO model expansion creating valuation upside.
Impact: +₹30 Cr revenue
“MOU with IOCL for CNG dispensing in NT and FS areas under full DODO model”
Risks that could prevent re-rating or deepen the value trap
NGT ruling against company's position
Impact: -300 bps margin impact
Management view: Actively monitoring pending court order with contingency plans
Monitor: Industrial volume growth rate in Fatehgarh Sahib GA
Capex exceeding ₹250cr planned expansion budget
Impact: -150 bps margin impact
Management view: Focusing on operational efficiency to offset capex pressure
Monitor: Quarterly depreciation to PAT ratio
Reduction in non-operating income streams
Impact: -200 bps margin impact
Management view: Working to reduce dependency on other income through core business growth
Monitor: Other income as % of total profit
Forward-looking targets from management for FY27
Revenue Growth Target
12%
Implied PAT Growth
15%
OPM Guidance
11%
Capex Plan
₹250 Cr
Key Milestones
• 150+ CNG stations by March 2026
• EBITDA of ₹5.25-5.50/scm
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +6% | +24% | Decelerating |
| PAT (Net Profit) | +40% | -29% | Inflection Up |
| OPM | 11.0% | +200 bps | Stable |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Mar 21, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
IRM Energy Ltd has a deep value score of 49/100 (rated Average). This score is calculated from three components
IRM Energy Ltd's quarterly profit (PAT) growth trajectory
IRM Energy Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
IRM Energy Ltd's earnings momentum is Decelerating — growth rate is slowing.
IRM Energy Ltd's valuation metrics
IRM Energy Ltd's revenue and margin trends
IRM Energy Ltd's trailing twelve month (TTM) performance
IRM Energy Ltd key facts
IRM Energy Ltd shows limited deep value signals currently — score is 49/100 (Average). Monitor for improvement.
LPG Bottling deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
IRM Energy Ltd has 4 key growth catalysts identified from recent earnings analysis
IRM Energy Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
