SRM Energy Limited reported a standalone net profit of ₹350.54 lakh for the quarter ended June 30, 2026, compared to a loss of ₹139.70 lakh in the corresponding period of FY25. The turnaround was driven entirely by a non-operational gain: the write-back of an outstanding loan liability amounting to ₹357.40 lakh, recognized as other income following an arrangement between the erstwhile and present management. This development marks a significant shift from the previous quarter’s profit of ₹205.79 lakh, which also relied heavily on other income sources rather than core operations.

The Board of Directors approved the unaudited financial results on August 5, 2026, in Mumbai. The statutory auditors, Rajat Associates, issued a qualified opinion on the financial statements. The qualification stems from material uncertainties regarding the company’s ability to continue as a going concern, citing continuous cash losses, complete erosion of net worth due to accumulated losses, and current liabilities exceeding current assets as of June 30, 2026. The auditors noted that the company has no active business operations.

Financial Performance Highlights

The company incurred minimal operational expenses during the quarter, with employee benefits at ₹0.40 lakh and other expenses at ₹6.46 lakh. There were no finance costs reported for the period. The absence of revenue from operations underscores the dormant state of its core power generation business segment.

What the Numbers Show

The reported profitability is not indicative of operational recovery but rather a balance sheet adjustment. The write-back of ₹357.40 lakh constitutes nearly the entire top-line figure, masking the underlying cash burn. With current liabilities exceeding current assets and net worth fully eroded, the company’s continuity depends entirely on financial support from management or entities under common control, as disclosed in the notes to accounts. Investors should note that the qualified opinion from statutory auditors highlights significant risk regarding asset realization and liability discharge.

srm energy has announced a postal ballot notice dated May 20, 2026, to seek shareholder approval for several key resolutions. The company is proposing the appointment of Mr. Umesh Narpatchand Sanghvi as Managing Director for a period of five years effective from March 16, 2026. Additionally, the notice seeks the regularization of Mrs. Sapna Umesh Sanghvi, who was appointed as an Additional Director, by appointing her as a Non-Executive Director.

The company has also proposed the appointment of two Independent Directors, Mr. Gopal Ajay Malpani and Mrs. Pooja Navnit Maheshwari, for a term of five years from March 16, 2026, to March 15, 2031. These appointments are subject to the approval of shareholders through special resolutions. Furthermore, the company intends to alter its Memorandum of Association by deleting the Object Clauses mentioned under Clause III (C) and renumbering the clauses.

In another resolution, SRM Energy Limited seeks to appoint M/s. HSPN & Associates LLP as Secretarial Auditors for a period of five years, from the financial year 2025-2026 to 2029-2030. This appointment is intended to fill the casual vacancy caused by the resignation of the earlier Secretarial Auditor, M/s. S K Nirankar & Associates.

Voting Schedule and Process

The remote e-voting facility will be available to members whose names appear in the Register of Members or Register of Beneficial Owners as on the cut-off date of May 21, 2026. The e-voting period commences at 09:00 A.M. on Sunday, May 24, 2026, and ends at 5:00 P.M. IST on Monday, June 22, 2026. The results of the e-voting will be announced on or before Wednesday, June 24, 2026.

The company has engaged the services of Central Depository Services (India) Limited to provide the e-voting facility. Mr. Hemant Shetye has been appointed as the Scrutinizer to conduct the postal ballot process in a fair and transparent manner. If approved, the resolutions will be deemed to have been passed on the last date of remote e-voting, i.e., June 22, 2026.

Details of Appointments

The following table summarizes the director appointments proposed in the postal ballot notice:

The explanatory statement accompanying the notice notes that Mr. Umesh Narpatchand Sanghvi will serve as Managing Director without any remuneration initially, though the Board retains the authority to revise this subject to compliance and approvals. The Board recommends all resolutions for approval by the members.