Prabha Energy Limited released its investor presentation on August 31, 2026, outlining its strategy to become a major private Coal-Bed Methane (CBM) producer in India.

The company disclosed estimated CBM reserves of 31 BCM across two blocks in Jharkhand and projected an EBITDA margin of approximately 70% over the block life.

Asset Portfolio and Production Status

Prabha Energy Limited operates in both CBM and marginal gas fields. The CBM portfolio holds a Gas Initial in Place (GIIP) of 31 BCM, while the marginal gas fields in Rajasthan hold 1.42 BCM GIIP.

Commercial production at the North Karanpura block began in May 2025. The company has drilled 68 of the 74 planned wells in this block. Prabha Energy holds a 25% participating interest, with partners ONGC (55%) and IOC (20%).

The Jharia Block targets commercial production in Q4 FY27. Drilling is phased, with 8 of 55 wells completed so far. Prabha Energy holds a 90% interest, with Bharat Coking Coal Ltd holding the remaining 10%.

Market Context and Infrastructure

India’s natural gas demand is projected to rise from ~188 MMSCMD to between 297 MMSCMD and 365 MMSCMD by 2030. Domestic production is expected to reach only 104 MMSCMD by 2030 under the base case, highlighting a significant supply gap.

The national gas pipeline network is set to cross 30,000 km by 2027. Both Prabha Energy’s blocks connect directly to this grid: the North Karanpura block via a ~68 km IOCL pipeline and the Jharia block via an ~8 km PEL pipeline.

What the Numbers Show

The company’s financial model relies heavily on high-margin unconventional gas assets. With an indicated EBITDA margin of ~70%, profitability is structurally linked to successful execution of well-drilling programs rather than volume scale alone. The staggered capex approach for Jharia aims to fund development through internal cash flows from the already producing North Karanpura asset.

Prabha Energy Limited has scheduled its 17th Annual General Meeting (AGM) for Tuesday, September 8, 2026, at 11:00 am through Video Conferencing or Other Audio-Visual Means. The meeting aims to transact ordinary business, including the adoption of audited standalone and consolidated financial statements for FY26, and several special resolutions regarding capital raising and board appointments.

Capital Raising via QIP

The Board seeks shareholder approval to raise funds aggregating up to ₹150 crore through a Qualified Institutions Placement (QIP). The proceeds are intended primarily to fund capital expenditure requirements for the North Karanpura (NK) and Jharia Coal Bed Methane (CBM) blocks. Additional uses may include working capital requirements, strategic investments, inorganic acquisitions, investment in subsidiaries, and general corporate purposes.

The QIP will be open only to qualified institutional buyers (QIBs), with a minimum of 10% allotted to mutual funds. Allotment must be completed within 365 days from the date of passing the resolution. Securities allotted will carry a one-year lock-in period and will rank pari-passu with existing equity shares.

Related-Party Transactions

Shareholders are asked to approve material related-party transactions (RPTs) exceeding the lower of ₹1,000 crore or 10% of the annual consolidated turnover. The company’s annual consolidated turnover as on March 31, 2026, was ₹610.80 lakh. Key RPTs include:

• Remuneration for Chairman Prem Singh Sawhney up to ₹180 lakh per annum.
• Remuneration for Managing Director Shanil Paras Savla up to ₹72 lakh per annum.
• Loans from Shanil Paras Savla up to ₹10 crore.
• Transactions with group company Deep Industries Limited up to ₹75 crore, including financial assistance, guarantees, and operational services.

Board Appointments

The meeting will consider the re-appointment of Mr. Prem Singh Sawhney as Executive Director for three years, effective February 20, 2027. His proposed monthly salary is up to ₹15 lakh. Additionally, Ms. Shaily Jatin Dedhia is proposed for re-appointment as an Independent Director for a second term of five years, up to June 26, 2032.

What the Numbers Show

The scale of proposed related-party transactions significantly exceeds the company’s current revenue base. The estimated ₹75 crore in transactions with Deep Industries Limited represents approximately 1,227% of the company’s FY26 consolidated turnover of ₹610.80 lakh. Similarly, the potential ₹10 crore loan facility from Managing Director Shanil Paras Savla accounts for roughly 163% of annual turnover. This concentration suggests a heavy reliance on promoter-linked financial support and group synergies during the early stages of commercial production, which commenced in May 2025.

Financial Performance

For the financial year ended March 31, 2026, Prabha Energy reported:

E-Voting Details

Remote e-voting begins on September 4, 2026, at 9:00 am and ends on September 7, 2026, at 5:00 pm. The cut-off date for determining voting entitlement is September 1, 2026. The register of members will remain closed from September 2 to September 8, 2026.