IRM Energy Ltd (LPG Bottling) — fundamental analysis, earnings data, and key metrics. PE: 16.1. ROE: 4.7%. This stock is not currently in the Nifty 500 momentum outperformers list.
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
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's latest quarterly results (Dec 2025) show
IRM Energy Ltd's current PE ratio is 16.1x.
IRM Energy Ltd's price-to-book ratio is 0.8x.
IRM Energy Ltd's fundamental strength based on key financial ratios
IRM Energy Ltd has a debt-to-equity ratio of N/A.
IRM Energy Ltd's return ratios over recent years
IRM Energy Ltd's operating cash flow is positive (FY2025).
IRM Energy Ltd's current dividend yield is 0.85%.
IRM Energy Ltd's shareholding pattern (Dec 2025)
IRM Energy Ltd's promoter holding has remained stable recently.
IRM Energy Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
IRM Energy Ltd has 4 key growth catalysts identified from recent earnings analysis
IRM Energy Ltd has 3 key risks worth monitoring
IRM Energy Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why IRM Energy Ltd may be worth studying
IRM Energy Ltd investment thesis summary:
IRM Energy Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
