SRM Energy Ltd

BSE: SRMENERGY · Power Generation

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Snapshot

Unlock SRM Energy Ltd's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

SRM Energy Limited is an Indian power generation company originally established to develop and operate thermal power projects. The company is currently navigating a period of limited operational activity and financial restructuring.

Business Model

The company's business model is centred on the development of large-scale thermal power infrastructure, specifically a proposed coal-based project in Tamil Nadu. Currently, the firm is focused on managing existing obligations and exploring new business opportunities to revitalise operations.

  • Proposed Project Capacity:1980 MW

Management Commentary

Management is currently focused on navigating regulatory hurdles and addressing the financial stress that has constrained the company's business activities. The primary objective remains the restructuring of existing obligations to stabilise the corporate entity.

Growth Outlook

The growth outlook is contingent upon the successful restructuring of the company's financial obligations and the potential revival of its power generation projects. Future progress depends on overcoming long-standing operational and regulatory challenges within the Indian energy sector.

Key Risks

  • Regulatory and Permitting Risk. The company faces significant hurdles in obtaining and maintaining the necessary regulatory approvals for large-scale thermal power projects.
  • Financial Distress. Limited operational activity and existing debt obligations pose a substantial risk to the company's ongoing viability as a listed entity.
  • Project Execution Risk. The transition from a stalled project status to active power generation involves complex infrastructure development risks and capital requirements.
  • Sectoral Volatility. The Indian power generation sector is subject to intense competition and shifting policy landscapes that may adversely impact the company's business model.

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Key Metrics

NET PROFIT

₹-0.03 Cr

TTM · consolidated

+95.7%YoY

EPS

₹-0.03

TTM · consolidated

+96.1%YoY

RETURN ON EQUITY

0.1%

TTM · consolidated

-1.4 ppYoY

RETURN ON CAPITAL EMPLOYED

0.1%

TTM · consolidated

-1.4 ppYoY

P/E

-745.0x

Q1 FY26 · consolidated

-745.0 vs -51.8x5Y avg

EV/EBITDA

-2039.7x

Q1 FY26 · consolidated

-2039.7 vs -99.5x5Y avg

DEBT TO EQUITY

1.0x

Q2 FY26 · consolidated

+1.99xYoY

Peers · Power Generation

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
SRM Energy LtdSRMENERGY
₹22 Cr-792.33-2257.670.1%0.1%+118.9%
RattanIndia Power LimitedRTNPOWER
₹4,269 Cr37.8610.43-6.5%25.5%2.4%6.1%-35.3%
Gujarat Industries Power Company LimitedGIPCL
₹3,196 Cr6.367.3923.8%52.8%13.7%6.8%+15.8%
Insolation EnerINA
₹2,040 Cr13.0%-58.1%
K.P. EnergyKPEL
₹1,691 Cr9.196.0874.3%19.0%43.5%39.7%-41.0%
Orient Green Power Company LimitedGREENPOWER
₹1,101 Cr17.077.72-0.1%69.5%6.0%7.7%-31.1%

As of Q1 FY26

Financials