Announced Thu, 22 Jan · 17:52 IST

Outcome of Board Meeting to consider and approve unaudited standalone and consolidated financial results of the Company for the quarter and nine-months ended December 31, 2025

Revenue DeclinePat NegativeEmphasis Of MatterRelated Party TransactionsResults View source PDF

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AI summary

EKI Energy Services' board approved its unaudited Q3FY26 and 9MFY26 results. Standalone revenue from operations fell sharply to ₹1,581.32 lakhs in Q3 from ₹6,240.70 lakhs a year ago (about 75% decline), and 9M revenue dropped to ₹6,489.79 lakhs from ₹15,003.88 lakhs. Standalone profit after tax collapsed to just ₹3.59 lakhs in Q3 (vs ₹468.60 lakhs YoY) and ₹5.78 lakhs for 9M (vs ₹1,225.81 lakhs). On a consolidated basis, the company swung to a loss of ₹462.65 lakhs in Q3 (vs profit of ₹153.28 lakhs YoY) and a 9M loss of ₹878.70 lakhs, with subsidiaries alone losing ₹1,246.18 lakhs in 9M. The auditor (Dassani & Associates LLP) issued an unmodified review report but flagged two Emphasis of Matter items: the pending demerger of the Generation Segment into EKI One Community Projects (awaiting NCLT approval), and a sub-judice matter with MCA relating to a Rule 13 report filed by the previous auditor for FY23. Carbon-credit inventory valuation was also highlighted as a critical accounting estimate. Separately, the board approved acquiring the remaining 14.11% stake (1,24,999 shares) in subsidiary GHG Reduction Technologies from a related party for ₹60.50 lakhs, making it a wholly-owned subsidiary by March 31, 2026.

Likely market impact

Sharp YoY revenue collapse (standalone down ~57% for 9M, consolidated down ~83%) and a swing into consolidated losses, combined with pending demerger-related uncertainty and unresolved MCA matters, point to significant operational stress for shareholders. The subsidiary acquisition is small and non-dilutive, but the weak results and auditor emphasis items are likely to weigh on sentiment and stock price in the near term.