BGR Energy Systems

GMR Energy raised Rs 1,600 crore through five-year non-convertible debt priced at 14.85%. The issue attracted investors including Allianz Global, Trust, and DSP Finance. The coupon rate is more than twice the existing risk-free rate on comparable duration. Proceeds will be used to partly repay existing loans and extend intra-group lending. Some investors plan to offload portions of the debt in the secondary market to large foreign banks and family offices. The higher cost reflects the holding company structure and reduced foreign bank interest in thermal power producers. GMR Group has been increasing its stake in GMR Energy, rising from 58% to nearly 87% after acquiring Tenaga Nasional's 29% stake and signing a deal for Temasek's 12% stake, which will make it almost 99% owned. The company operates four power assets including GMR Kamalanga (1,050 MW thermal) and GMR Warora (600 MW thermal). GMR's airport business separately raised Rs 6,000 crore across two tranches at rates of 10.35% and 10.50%.

BGR Energy Systems reported a net loss of Rs 266.03 crore in Q1 FY2026, significantly higher than the Rs 111.68 crore loss in Q1 FY2025. Revenue declined 49% year-on-year to Rs 88.61 crore. The company's EBITDA loss widened to Rs 80.79 crore compared to a profit of Rs 0.49 crore in the previous year quarter. Loss per share increased to Rs 36.74 from Rs 15.72. Total liabilities rose to Rs 6,563.27 crore while net worth remained negative at Rs 1,905.51 crore. Auditors raised material uncertainty about the company's going concern status due to continuous cash losses, negative net worth, and delays in debt repayments. The Construction and EPC Contracts segment contributed 87% of revenue at Rs 77.44 crore, while Capital Goods segment generated Rs 11.17 crore. Promoters infused unsecured loans of Rs 433.18 crore to support operations. The company received a termination order from one customer and is pursuing a Rs 804.62 crore claim with NUPPL for additional work. Management is in discussions with bankers for a restructuring package. S. Pattabiraman will step down as CFO, with S. Sundar appointed as his replacement.

BGR Energy Systems Limited published its unaudited standalone and consolidated financial results for the quarter ended June 30, 2025 in Business Standard and Prajasakti newspapers. The company reported total income from operations of Rs 8,861 lakhs on standalone basis and Rs 8,861 lakhs on consolidated basis. The company recorded net losses after tax of Rs 26,302 lakhs (standalone) and Rs 26,603 lakhs (consolidated) for the quarter. Basic earnings per share stood at negative Rs 36.45 for standalone and negative Rs 36.74 for consolidated results. The equity share capital remained at Rs 7,216 lakhs with face value of Rs 10 per share. The results were reviewed by the Audit Committee and approved by the Board of Directors on August 14, 2025.