BGR Energy Systems

BGR Energy Systems Limited received a demand order from the Assistant Commissioner, Bhubaneswar Division for excess Input Tax Credit (ITC) of Rs. 36,14,294 for FY 2022-23 under Section 73 of CGST Act 2017/OGST Act, 2017. The company also faces a penalty of Rs. 3,68,940. The adjudicating authority partially accepted the company's defense by dropping the FY 2021-22 demand of Rs. 64,21,696 after verification showed no excess ITC was availed for that period. The excess ITC amount comprises IGST Rs. 34,89,396, CGST Rs. 62,449, and SGST Rs. 62,449. BGR Energy Systems plans to file an appeal before the Appellate Authority against the confirmed demand.

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.