Real Eco-Energy FY26 Results: Net profit drops 44% to ₹39.91 lakh

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Reviewed by
Naman SScanX News Team
Key Highlights
  • Net profit declined 44% YoY to ₹39.91 lakh in FY26
  • Total income fell to ₹250.43 lakh from ₹334.74 lakh in FY25
  • No dividend recommended for FY26; profits transferred to reserves
  • Long-term loans and advances surged to ₹1,644.34 lakh
  • Debt-equity ratio increased significantly to 2.73 from 0.76
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Real Eco-Energy Limited reported a net profit of ₹39.91 lakh for the financial year ended March 31, 2026, marking a significant decline from ₹71.73 lakh in the previous year. Total income contracted to ₹250.43 lakh from ₹334.74 lakh in FY25, driven by lower revenue from operations.

The company’s Board of Directors has decided not to recommend any dividend for FY26. The profits for the year have been transferred to reserves. This performance update coincides with the announcement of the 33rd Annual General Meeting (AGM), scheduled for September 30, 2026, at 12:30 pm at the registered office in Ahmedabad.

Financial Performance Overview

The annual report highlights a contraction in both top-line and bottom-line figures. Revenue from operations stood at ₹249.49 lakh, a decrease from ₹334.74 lakh in FY25. The decline in profitability was accompanied by a reduction in total expenditure, which fell to ₹209.89 lakh from ₹262.31 lakh in the preceding year.

Metric FY26 (₹ Lakh) FY25 (₹ Lakh) Change
Total Income 250.43 334.74 -25.2%
Total Expenditure 209.89 262.31 -20.0%
Profit Before Tax 40.54 72.43 -44.0%
Net Profit 39.91 71.73 -44.4%

Balance Sheet and Key Ratios

The company’s balance sheet reflects a substantial increase in non-current assets, primarily due to long-term loans and advances rising to ₹1,644.34 lakh from ₹36.44 lakh in FY25. Conversely, trade receivables decreased to ₹448.10 lakh from ₹684.83 lakh. Cash and cash equivalents increased to ₹76.06 lakh from ₹28.37 lakh.

Key financial ratios indicate a shift in leverage and efficiency:

  • Debt Equity Ratio: Increased to 2.73 from 0.76, reflecting higher borrowings.
  • Return on Equity (RoE): Declined to 6.08% from 11.83%.
  • Net Profit Margin: Dropped to 16.00% from 21.43%.

AGM Agenda and Voting Details

The primary agenda for the upcoming AGM includes the adoption of the audited financial statements for FY26 and the re-appointment of Managing Director Dharm S. Patel (DIN: 07464810), who is liable to retire by rotation. Shareholders holding shares in physical or dematerialized form can cast their votes electronically via the CDSL system.

Detail Information
AGM Date September 30, 2026
Time 12:30 pm
Venue Registered Office, Ahmedabad
E-Voting Start September 27, 2026
E-Voting End September 29, 2026
Record Date September 23, 2026

Share transfer books and the register of members will remain closed from September 23, 2026, to September 30, 2026, both days inclusive. Mr. Chintan K. Patel, Practicing Company Secretary, has been appointed as the Scrutinizer for the voting process.

What the Numbers Show

A divergence is visible between the sharp drop in net profit and the modest decline in total expenditure. While revenue fell by approximately 25%, net profit declined by over 44%. This suggests that fixed costs or non-operating expenses weighed more heavily on margins relative to the top-line contraction. Additionally, the significant rise in long-term loans and advances, coupled with increased borrowings, has pushed the debt-equity ratio up nearly fourfold, indicating a shift towards higher leverage despite lower operational earnings.

Historical Stock Returns for Real Eco Energy

1 Day5 Days1 Month6 Months1 Year5 Years
-0.23%-7.56%-10.57%-7.56%-11.11%0.0%

What specific projects or entities account for the nearly 45-fold increase in long-term loans and advances, and how might this impact future liquidity?

How does the company plan to service its significantly higher debt load given the 44% decline in net profit and rising debt-equity ratio?

Are there strategic operational changes or new market entries planned to reverse the 25% contraction in revenue from operations?

Real Eco-Energy Q1FY26 loss widens to ₹7.16 lakh as trading revenue falls

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Reviewed by
Naman SScanX News Team
Key Highlights

Real Eco-Energy Ltd reported a Q1FY26 standalone loss of ₹7.16 lakh on revenue of ₹51.48 lakh, a sharp decline from Q4FY25. The loss was driven by unallocable expenses outweighing the trading segment's modest profit, while other business units remained inactive.

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Real Eco-Energy Limited reported a standalone loss of ₹7.16 lakh for the quarter ended June 30, 2026, marking a deterioration in profitability compared to the previous quarter. The company’s total revenue for the period was ₹51.48 lakh, generated exclusively through its trading segment, while other business units including construction and media recorded no revenue.

The Board of Directors, chaired by Managing Director Dharm Swetank Patel, approved the unaudited financial results on August 12, 2026. The statutory auditors, N.S. Nanavati & Co., issued a limited review report confirming that the statements comply with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The results were subsequently filed with stock exchanges and published in regional newspapers as per regulatory mandates.

Financial Performance

Revenue from operations declined sharply to ₹51.48 lakh in Q1FY26, down from ₹125.42 lakh in the final quarter of FY25. Total expenses for the quarter amounted to ₹58.64 lakh, resulting in a pre-tax loss of ₹7.16 lakh. This contrasts with the full-year FY25 result, where the company posted a profit of ₹39.91 lakh on revenues of ₹250.43 lakh.

Metric: Q1FY26 (Unaudited) Q4FY25 (Audited) YTD FY26 (Audited)
Revenue from Operations: ₹51.48 lakh ₹125.42 lakh ₹249.49 lakh
Total Expenses: ₹58.64 lakh ₹129.69 lakh ₹209.89 lakh
Profit/(Loss) Before Tax: (₹7.16 lakh) (₹3.33 lakh) ₹40.54 lakh
Net Profit/(Loss): (₹7.16 lakh) (₹3.96 lakh) ₹39.91 lakh
EPS (Basic): (₹0.01) (₹0.004) ₹0.04

What the Numbers Show

A significant divergence exists between segment-level performance and consolidated results. While the trading segment contributed a positive result of ₹0.39 lakh, unallocable expenditures net of unallocable income totaled ₹7.52 lakh. This single line item more than tenfolded the operating profit generated by the trading arm, driving the overall net loss. The media business also incurred a small loss of ₹0.03 lakh, while construction and bio-diesel segments remained inactive in terms of revenue generation.

Segment Analysis

The company operates across four segments: construction, media house, bio-diesel mineral business, and trading. In Q1FY26, only the trading segment recorded activity.

  • Trading: Generated all ₹51.48 lakh in revenue and posted a segment result of ₹0.39 lakh.
  • Media Business: Reported a loss of ₹0.03 lakh with no revenue.
  • Construction & Bio-Diesel: No revenue or result disclosed for these segments.

Total segment assets stood at ₹2,503.50 lakh, with the trading segment holding the largest share at ₹2,043.30 lakh. Correspondingly, trading liabilities accounted for ₹1,344.24 lakh of the total ₹1,830.52 lakh in segment liabilities.

Historical Stock Returns for Real Eco Energy

1 Day5 Days1 Month6 Months1 Year5 Years
-0.23%-7.56%-10.57%-7.56%-11.11%0.0%

What strategic steps is management taking to reactivate the dormant construction and bio-diesel segments to diversify revenue streams beyond trading?

How does the company plan to address the significant unallocable expenditures that currently outweigh the trading segment's operating profit?

Given the sharp decline in revenue from ₹125.42 lakh to ₹51.48 lakh, are there specific market conditions or supply chain issues impacting the trading segment's performance?

More News on Real Eco Energy

1 Year Returns:-11.11%